Have an idea for a home business to help you make some extra money while taking care of all the needs at home? It’s become a much more viable option thanks to the variety of services and tools making it easier than ever to launch a business on the net. However, you can’t simply set up a site and start trading. Here, we’re going to look at some of the most common mistakes made by those looking to start a home business, and what you can do to avoid them.
Not registering your business
You have to ensure that your business is trading as a legal entity before you can start selling your products and services. If you’re running it as a sole proprietorship, this doesn’t require all that much work. However, if you want to run it as a limited liability company (which sets the business as a distinct legal entity to you, with some benefits) then you might want to look to the help of a business formation service. You don’t tend to need a lot to do this, just a business address, some money for your certificate, and a business bank account should do just fine.
Thinking you need no capital
One of the big benefits of starting a home business is the low costs that come with them. However, that doesn’t mean they come with no costs. Every business requires money to start. You’re going to need the right home office, equipment such as a computer, not to mention the materials, tools, software, or other resources that are required to provide the products or the services that you’re aiming to offer. As such, you should make sure that you have a home business budget set up, have a thorough understanding of how much capital you’re going to need, as well as how you’re going to get it.
Making steps without a solicitor
If you’re looking to keep the business lean in terms of costs, hiring a solicitor might seem like an easy way to sink that notion. However, there are times that you’re going to need one. For instance, any time that you need to create a contract, such as an NDA or employment agreement, you are going to need a solicitor. There are times when it’s compulsory to have legal advice, too, such as when you’re looking to litigate, to take a case to court, to administer oaths, and so on. Even when it’s not mandatory, sometimes it is just good sense to have legal advice for any business processes that you’re not certain with. Make sure you include legal fees in the budget for that reason.
Mixing up personal and business finances
If you’re running a limited liability company, then the following step may very well be mandatory. Even when it is not, however, you should ensure that you have a business bank account to help you keep your business finances separate from your personal ones. Otherwise, it’s all too easy to end up dipping into funds you shouldn’t whether that’s for personal expenses or business expenses. It’s also hard to track your incomings and outgoings for tax and accounting purposes if all your finances are muddled up together.
Trying to do everything alone
The costs of employing another person are not to be sniffed at, by any means. However, the costs of trying to take on every single responsibility in the business yourself can be much greater, burning you out, which can lead to the whole business being in mortal danger. You don’t always need to hire an employee. Instead, look at the things that you might be able to outsource. Even from the word go, hiring a virtual assistant, for instance, can make it a lot easier to make sure that all of the necessary admin tasks are being taken care of while freeing you up for work that might be more vital to your bottom line.
Not maintaining your work-life balance
Yes, yes, being on the hustle mindset is all well and good, but if you’re not careful to make sure that you actually have time to yourself, you can easily burn out which, as mentioned, is not good for your business. Aside from giving yourself structured work hours to make yourself available each day, you should make sure that work stays to only one part of the home, as well, so that your ability to relax at home isn’t compromised by associating every area of it with your job.
With the tips above, you can make sure that you’re able to start your home business without too much strife.
