Managing a home-based business has some unique challenges compared to a significant startup with venture capital funding and fewer difficulties getting up and running.
Here are four tips for how to manage a home-based business more successfully at the beginning.
Get Your Money Right
Many small businesses flounder and close quickly because their money wasn’t right at the beginning.
When starting a home business, you’re often using personal resources like savings, loans and credit cards to give yourself enough money to get it off the ground. Then there’s the reality that you probably cannot pay yourself a wage, as it’s not initially going to generate much revenue. How do you handle this cash drought?
Muster all your savings and see how much you have. Figure out what you’ll need to get up and running. Then add on what money will be required to cover your bills. If you find the need, there’s the option of taking instant short term loans to provide up to $1,000 repayable over six months, which can provide some initial leeway before things get hectic.
Fix Your Schedule
Working from home can be a nightmare if you’re not careful.
There’s a definite need to separate work from your personal life. If you’re working online, understand that you cannot keep going 16 hours a day. You need a mental break and to physically get away from the business.
If possible, set fixed hours. Even if you’re taking care of a child at home, you can still set work time around your child or baby’s activities. For instance, if your baby takes a nap at a certain time or you have an older child who can play alone with their toys for an hour, then this can be a period of focus to get work done. Grab each pocket of 30-60 minutes when you have a family to take care of because this time is precious. For everyone else, setting fixed hours as a block is even better.
Equip Yourself with What’s Needed
It’s important that you have the right equipment to do your work. That doesn’t mean the best of everything. It means the basic tools and not much more than that.
For instance, while you most likely require a laptop, it doesn’t usually need to be a high-specification one. Whilst apps like Adobe Photoshop are quite demanding on a PC, increasingly there are online tools like Canva that offer useful graphics design functionality, which works in any web browser.
Many apps have free alternatives (Google Sheets instead of Microsoft Excel) to avoid spending much to get the tools required. Also, on the tools and hardware side, try to buy second-hand where buying new or the latest isn’t necessary.
Keep Paperwork Up to Date
Lastly, ensure your paperwork and permits are kept updated.
It’s easy to push ahead with a new business and neglect the basics. This might work for a while but it can hurt you later.
Check if you need a business license for the state and hire an accountant.
Managing a home-based business is more difficult than you might first imagine but it gets easier as you go along. There are also the rewards of being your own boss, which makes it totally worth it.
