How To Start A Small Business At Home
Learn the essential steps to kickstart your own small business from the comfort of your home. Get practical insights and unleash your entrepreneurial potential.
Starting a home-based business is just like starting any other business except the fact that the business will have registered address as the owner’s place rather than a commercial area. These home-based businesses have gained popularity in recent times because they offer flexibility and cost less on the pocket.
Who Can Start A Business At Home?Technological advances like the internet have given the power to everyone to start a business from home. People can start a business to sell products or provide services on an e-commerce platform. Individuals can start a business to provide services related to their skills like photography, dancing, etc.
Advantages Of Starting A Home-Based Business
• It provides flexibility to attain work and life balance especially for stay at home parents or retirees.
• Home based businesses functioning on e-commerce platforms can cater to a larger customer base and not just be restricted to their locality.
• The start-up capital required to start a home based business is less than in a commercial place.
• A home based business can avail various tax benefits and deductions.
• The time saved on commuting to the office can be used to concentrate on business and revenue generating activities.
• Entrepreneurs can invest in new business without investing a lot of money.
• Entrepreneurs can test the waters before investing a significant amount of money in the business.
• They reduce overhead costs thus their pricing can be more flexible than their competitors.
Profitable Small Business Ideas To Start From Home
• Catering–One can start the catering business to provide food for small gatherings of 25-30 people and then expand to cater to a larger audience.
• Content Writing–This is a good business idea for any individual with a flair for language. It requires a low capital investment in a stable internet and a laptop. Starting with writing small blogs one can expand the business to vlogging, blogging, social media content, etc.
• Photography–An individual who is passionate about photography can start a business of filming or capturing various events such as birthdays, parties, etc. Freelance video or photo editing online is an option if the individual is not interested in travelling in order to capture photographs of events.
• Tiffin Services–Many people who stay away from their home due to education or work life prefer having home cooked food for meals. Entrepreneurs who can cook can start this business providing fresh cooked food to their customers.
• Computer Repairs–An individual having an expert knowledge about computer hardware and software can give services to repair computers at the customers’ home giving them the personal attention they need.
• Yoga Classes –
In today’s scenario where people prefer to enroll themselves in yoga classes, this is a good business opportunity for a trained yoga instructor. It is a low investment and high profit business. The instructor can take classes in both online and offline mode.
• Other options may include boutique, event management, conducting tuitions etc.
How To Start A Small Business At Home
1. Make A Business Plan–Entrepreneurs must decide on the business they want to venture. They should devise a plan containing business strategy, budget, expenditures, investment capital and taxes. It is a blueprint for the business.
2. Finalize Funding Options–Every new business needs a start-up capital investment. Some may fund through their savings while others may need funds from external sources. An entrepreneur may take a small business loan from a bank or NBFCs. They may raise capital from crowd funding or venture capitalists.
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3. Create A Working Environment–Since home based businesses operates from home, entrepreneurs need to set hard rules to set aside their personal lives and set up a separate working area and decide upon the working hours which will be only dedicated to business activities and operations.
4. Obtain Required Registrations–Even though the business is being run from home, it is mandatory for the business owner to obtain various licenses and registrations. Additionally, the business owner must have a Permanent Account Number (PAN) and Taxpayers Identification Numbers (TIN).
5. Open A Bank Account–After acquiring all the required registrations and licenses, the business owner must open a current account in a bank in the business name. All the business transactions should be done through this account so that the personal and business transactions can be kept and managed separately.
6. Develop Website–It is advisable for any business to be digitally present in order to grow in size. The entrepreneur can get his own website designed and showcase its products and services along with the contact details. Entrepreneurs can also make themselves visible on social networking websites like Facebook, Instagram or Twitter. Being digitally visible helps to reach more customers and have a larger audience.
7. Create A Trademark–Every business has an easy to remember and a catchy brand name and logo. An entrepreneur should create a vibrant logo and get it printed on all the stationery including letter heads, packaging bags or boxes etc. The social media pages too must contain the business trademark.
8. Market The Business–In order for the business to establish and grow, one must market its products and services. A business owner can market its business by posting videos and images on social media or youtube, advertising on radio, newspaper, pamphlets etc.
Registrations Required For Home Based Businesses
• Business Registration–The first step to start any business is to get the business registered as an independent and recognized legal entity. The business owners can register the business as an LLP, OPC or a private limited company by applying to the Registrar of Companies. They can register as a partnership firm by applying with the Registrar of Firms. They can also establish a sole proprietorship firm.
• Business License –The business owner must obtain a No-Objection certificate from the local authorities such as Municipal Corporation to operate the business from a residential area.
• Shop And Establishment Registration–The business owner must register his business under the shop and establishment act. This can be done by applying to the respective state authority. This act regulates all the businesses even if they are operating from home.
• MSME Registration–Though it is not mandatory to get MSME registration but it is advisable for small businesses operating from homes in order to get benefitted in the form of tax benefits, low interest rate loans, easy access to capital, etc.
• Trademark Registration–It is advisable to get your brand name and logo registered to maintain the uniqueness of your trademark. Though it is not compulsory, it provides protection against the business name or logo being used by any other person. It also helps customers identify and remember the business, gain loyal customers and create business goodwill.
• Other Registrations–Depending on the nature of the business, there may be specific registrations that need to be catered to like a manufacturing business requires a trade license, a business dealing with food requires a FSSAI license, an e-commerce business requires a GST registration.
Starting a business is a task requiring a thorough planning, arranging of capital, requiring needed registrations and licenses etc. There are various ideas for home-based business.
IIFL Finance offers customized and comprehensive business loans up to Rs. 30 lakh. The loan requires minimal paperwork and is quickly disbursed. The loan interest rate is affordable to ensure the repayment is easy and pocket friendly.
Frequently Asked Questions
1. How can I raise capital for my business?
Ans- You may approach banks and other financial institutions like IIFL with your business plan and financial history to provide you with a loan.
2. Do I need a website?
Ans- Being digitally present is the need of the hour for any business. You may use third party websites to have a virtual presence.
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