5 ways to shift into a home-based business model
With more companies moving out of the office, here are some tips to shift yours into a home-based business.
Gone are the days when remote working was a novelty. Today, working at home is just as normal as getting dressed and going into the office each day. And if you are planning to shift into a home-based business model, you have fewer obstacles than ever. But that doesn’t mean there aren’t challenges along the way.
Here are five ways to get your home-based business set up and keep the momentum going.
1. Get your finances in order.
When launching any new business strategy, your first task is to ensure that you have the money to operate. But finding extra cash can be difficult, particularly if you’ve lost contracts and have dipped into reserve funds or even personal savings because of the pandemic. But there are ways to get financial assistance. Some organizations such as ZenBusiness, for example, have launched a COVID-19 relief strategy and are offering grants of $1,000 to select businesses.
Even if you miss out on a grant, there are more options to get working capital. If you have outstanding accounts receivable, for example, you may be able to get financed in as little as 24 hours from our team who can help select the right funding solution.
2. Handle the legal details now.
Regardless of what you do or where you’re located, all businesses must be set up with the right legal structure. If you are a freelancer, this may just be something as simple as adding income to your personal tax filing. However, anything more than a solo endeavor will require a legal strategy.
This might include having a business plan, partnership agreement, or terms of service in place before you get started. In the US, the Small Business Administration further asserts that you’ll need to register your business name, trademarks and domain. This helps protect you from competitors and legitimizes your presence in the business world.
3. Master marketing.
Marketing may not come naturally to every business owner, but it’s a crucial element when launching and running your operation. Fortunately, thanks to the Internet, there are plenty of places to find relevant information on how to market your business. Optimally, you will identify your target customer and cater to them on their terms. To get you started, you can use a mix of social media marketing, search engine optimization and branding.
Related: 10 ways small business marketers can crush big competitors
4. Grow your team.
Think of your business as a garden. Once you have planted the seeds, you can watch it grow. But you can’t do it alone, and you will eventually need to place talent in areas where you may not be the strongest. Hiring remote workers is a smart option and one that will allow you to continue to operate from the comfort of home. But remember to prioritize collaboration and communication. Keep your employees up-to-date with what’s going on by sending out regular updates or collaborating on Slack and similar channels.
Critical to keep on top of here is salary and payroll. Even though employees are working remotely, it’s important to compensate them fairly so they stay motivated and rewarded for quality work. This also helps reduce turnover, which can increase your overall expenses. HRDirector even notes that a telecommuting employee may bring home around $4,000 more annually than they would in a traditional office setting.
Many business owners can run into challenges making payroll at certain times throughout the year. Liquid Capital financing options can also help you get over these hurdles.
5. Evaluate every day.
Any size of business can benefit from performing routine evaluations. Even if you’re comfortable with what you are doing, it never hurts to dig in deep to make sure that your customers are happy and they are capitalizing on all available market opportunities. Routinely ask yourself questions about your direction, available resources and areas where you might improve. Failure to do so can leave you sitting stagnant.
To summarize, you have to start with financing. Without capital, it’s going to be exponentially difficult to get up and running. Next, make sure to take care of the legal aspects, learn how to market your business, and grow your team into a supportive organization that can help you move to the next chapter. Finally, never get complacent. Evaluate your business each day, and you’ll have many more opportunities to grow, even when running your company from a home-based office.
Next Up: 3 biggest financial challenges facing small business owners
At Liquid Capital, we work with clients who operate businesses in a variety of industries and office structures — whether from busy downtown buildings, the manufacturing floor, on-the-go or from their home office space. We’re business people ourselves, and our company is built on a network of locally owned and operated Principal offices. Whenever you’re talking to Liquid Capital, you’re talking directly to your funding source and a fellow business person.