The Start-Up Costs for a Home Based Business
If you’re planning on starting your own home-based business, congratulations! There is nothing like a dream that has actualized. Plus, there is something that is so empowering about working for yourself, being your own boss.
Of course, the cost of this kind of freedom oftentimes comes with a pretty hefty price tag. In other words, there are quite a bit of start-up costs that come with this kind of endeavor. That doesn’t mean that you should have any reason to panic. It simply means that you should do all that you can to plan ahead.
That’s why we’re here. It’s so that you can be provided with some things to (financially) consider while preparing to open up your business. Here are five main ones to keep in mind:
Do your research. OK, before we even get into what some of the costs actually are, you can end up cutting a lot of these prices (up to) in half simply by doing your research beforehand. Libraries tend to provide free information on starting up businesses. Also, you should definitely create a business plan. Score.org is one website that will assist you with creating one free of charge. You also may want to go online and do some studying up on people who are in a similar business field as you to read up on insights (via interviews or books) that they may have. Once you do that, it’s time to put a budget in place and then you’re ready to begin.
Estimate your home office costs. Once you have your budget in place, it is then time to consider the kinds of items that you will need for your office including furniture, equipment and office supplies. Also, don’t forget to include business stationery, business cards and brochures.
Purchase product. This one may seem obvious, but you’d be surprised how many people have orders that they can’t fill (which causes customer dissatisfaction) and it’s because they didn’t factor in that they need to allot a certain amount of money to supply the actual product. This is vital. Make sure it’s on the top of your “to-get list”.
Prepare to do some marketing. Thanks to social media websites like Facebook and Twitter, there are a lot of ways that you can generate a buzz about your company without having to spend a ton of money, but it’s still a good idea to plan to pay for some level of marketing. Say that you want to have a financial consultation business. Sure you can go on a website like Blogspot.com and create a working capital finance blog for free, but it’s also a good idea to take out a local ad in your newspaper or radio station and perhaps even have some T-shirts, coffee mugs or pens made with your company logo on them.
Get an accountant or bookkeeper. Initially, it may seem like it’s simply an extra expense, but this is something that you should look at as more of an investment. Due to the fact that 50 percent of all businesses close their doors within their first five years, it’s a good idea to hire a professional who can keep your books in order and prepare you for tax time (because dealing with the IRS when you have your own business is taxing. Pun intended.)
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