2021 is finally here, bringing with it a healthy and much-needed sense of optimism for the future. And, even though 2020 was not a typical year (by any means), I am still being asked the same, start of year questions about how to start a small or micro business at home.
Interestingly, this massive sense of optimism has trickled into business.
Recent research indicates that even with 2020’s challenges, three out of four business owners are feeling confident about generating success this year.
So, if you’ve been thinking about taking the leap into working for yourself, now could be an ideal time. And, if you are one of those people who want to know how to start a small or micro business at home, read on.
Setting up a home-based business isn’t particularly challenging in the UK, at least from a practical point of view. All you have to do is tell HMRC that you’re trading. Oh, and then make sure you pay your tax bill on time.
But if you also want that business to be successful and make a profit, you’ve got to do sit down and do some thinking and planning.
In their eagerness to just get going, lots of new entrepreneurs set up businesses without asking themselves ‘why’.
Why they’re starting that particular business, or why they’re the right person to start it – right now.
Asking yourself questions like these will help you understand your business and instil a sense of purpose that will sustain you, even when times get tough.
So if you are thinking about how to start your small or micro business from home, always begin with the basics. Ask yourself the who, what, why, when and where questions.
Let’s say you want to start a yoga business.
You might have the qualifications and the passion, but you’ll also need to consider the practicalities of
As I said previously, you have the yoga skills and qualifications as well as a passion for your craft. But do you have any business skills?
What do you know about business operations, financial management and marketing?
‘Business’ is a skill-set. Your passion and practical and applicable skills will only take you so far. To make a business work you will need to develop a set of business skills also.
Then there is actually operating the business from home. For example, have you got the technology needed to run your classes online? How will you check that the participants are doing everything safely?
If you’re going to run any type of business from home, you may also need to check with your mortgage and home insurance providers, and any relevant authorities, to make sure you’re legally able to use your home as a place of work.
Drawing up a simple checklist of practicalities before you start your business will help you avoid problems and pitfalls later on.
Following on from what I said about ‘business’ being a skill set, you should make a list of all the different skills that go into running a business.
Then, decide which ones you want to concentrate on yourself (and the ones you can do – easily), and which you will outsource to others.
Yes, you should be thinking of outsourcing from Day-One!
If you thought micro business owners and side-hustlers had less to worry about because they haven’t got teams of staff, think again!
No matter how many people work for a business, the vast majority still have essential things to take care of. Things such as using IT, managing legalities like data protection, and keeping on top of financial record-keeping.
(It still shocks me that I regularly speak to business owners who have been trading for years, yet they’ve never thought about serious issues like data privacy.)
Working for – and by – yourself from home means you will most likely need extra support in some areas. We can’t do everything by ourselves, and nor should we.
Mine your network to find the right people, ask for recommendations. If that doesn’t work, use sites like Fiverr to find freelancers to do the work you need. If you can’t afford to pay a professional, you could consider an exchange of services instead.
In my experience most new small and micro businesses will lose their first ten customers. How? Because their owners are too distracted by the fun and excitement of setting everything up.
It’s so easy to get pulled in, and it’s also completely understandable! After all, you’re starting the thrilling journey. You’re turning your brilliant idea into something that’s going to help others, AND make you some money.
It doesn’t get much better than that!
But with the right planning and preparation in place from the start, you can set yourself up for lasting business success.
If you’d like to learn more about how I can help you on that journey, why not book a complimentary, half-hour Breakthrough Session?
Just pick your favourite date and time, and I’ll take it from there.