Being your own boss does sound amazing, but the early stages of running a business are the most difficult for the majority of first-time entrepreneurs to handle, which is why alternative solutions have been created.
At the end of the day, most of us have some space in our homes that’s going to waste, and there’s no reason for you not to utilize that space for something profitable.
In fact, some of the greatest companies in the world were started in a garage, just look at Microsoft and you’ll know that success isn’t determined by how much of a head start you were given.
Obtaining capital for kicking your business off to a good start can be great, but it’s not mandatory, and there’s no reason for you to be wasting thousands of dollars on renting office space when you could run your operations from home if you’ve got the room for it.
Write a business plan
Every good idea starts off on paper, and you’ll want to completely flesh out your business plan before setting off into the unknown.
Come up with something that interests you and is also applicable to a niche group of people, and if you discover there’s a market for something that hasn’t been fully explored, you may just be onto something.
A business plan is something like a roadmap for your business and it’ll help you keep your goals in full view at all times.
By devising a solid business plan, you can bring on investors for additional financing much easier, allowing you to grow your idea into a larger business and eventually move it out of the confines of your own home.
Of course, there’s no need to rush things, and you should always take your time when it comes to working out what your business will be.
Pick your business structure
The way your business is structured affects many things, from how much you’ll be paying on your taxes to the number of employees you can take on, if any.
Generally, there are 4 different kinds of business structures to choose from, and the easiest to set up would be a Limited Liability Corporation, commonly known as an LLC.
By registering as an LLC, you’re creating a distinction between you as the owner and the business, meaning that all your personal assets will be protected should the business go under.
On the other hand, if you’re looking to start a business with one or more other parties, you’re going to have to register it as a partnership, which will still require you to determine the roles within the business structure, as only one party can take the lead.
Open a bank account for your business
After registering your business, you’ll want to open a separate bank account for all your business related expenses as well as for the fact that you’ll want to be able to do transactions with your customers.
This way, you’re separating your business finances from your personal money, which makes things a lot easier when tax season rolls around.
One thing to keep in mind is that you won’t be able to open a business bank account if you haven’t already applied for an Employer Identification Number, which is how the government will identify your business as a tax entity.
Applying for your EIN is completely free of charge and can be done on the official IRS website, after which you’ll receive your number in minutes.
Running a business without a separate bank account is tricky business and will spare you a mountain of stress when you’re filing your taxes later on in the year.
Begin operations
Once everything is set up, you’re ready to place your products on the market, and contrary to popular belief, no amount of storage space or offices is required to successfully run a business.
All you need are your wits and a room in your house to run your business, including some extra space to store all your products.
If you’re in the eCommerce industry, this problem is completely eliminated by the presence of something called dropshipping, which essentially allows you to never hold any inventory whatsoever, shipping products directly from the manufacturer to your customer’s front door, for a premium of course.
You may face certain hurdles at the start, but if you just press on and stay determined to make things work, your business will prosper, and you’ll be ready to move into a bigger space in no time.
Bottom line
No matter what others may have told you, there’s nothing stopping you from starting your own business with minimal investment.
One room in your home is all the office/storage space you’ll need to start operations, and once you’ve set everything up, you’ll see just how deceptively simple it was from the very start.