There are over 5 million small businesses in the UK and for many people, starting a small business from home is a dream come true. If you’re looking to go self-employed and start a business of your own, then here are 8 steps to getting started.
1. Decide what your business will offer
There is a lot to think about when starting a business from home, but the first step is to decide what your business will offer. If you are offering services to your clients (such as dog walking, writing, or social media management) it can be beneficial to gain some experience before starting out.
If you will be making products (such as food items, crafts or clothing) it’s vital that you think of the space you will need and what upfront costs you will have (like materials or tools).
Once you have decided exactly what your business will offer you’ll then need to think about the price you will charge your clients. Make sure you consider any running costs, staffing, rent or other supplies.
2. Research your target market
People will often start a business without considering the needs of their target audience, or really understanding who their target market is.
If you will be offering dog walking services in your local area, for example, it is important to consider how many dog owners live nearby. Also, would they would be willing to pay for your services? If there are already many dog walkers in your area then how will you stand out?
It is a good idea to imagine your target market and consider the kind of problems or challenges that they face and how your business can solve these.
Researching your target market will help shape your business and win sales.
3. Registering your business
Before you start invoicing clients or earning money it is important to consider whether you would like to start a limited company or register as a sole trader. Read more on the different options here.
If you are registering a limited company you will need to have a name for your business and a registered company address.
4. Winning clients or work
For many businesses owners, the prospect of finding customers or winning work is the most daunting task when it comes to running a business from home. Without sales and marketing experience it can be difficult to know where to start and how to find the right clients.
Before launching your business it is important to think about this and how you will approach your sales and marketing.
Whether it’s emailing, social media, calling, or working off referrals, having a strategy for finding clients is essential for long term success. As an online sales coach I help my clients to find ways of selling that not only work, but work for them – essential for long term success.
5. Starting a small business at home
While the prospect of working from home is appealing, it can cause lifestyle challenges for many business owners. Without a routine and structure to the day it can be easy to work very long hours or feel overwhelmed as you take on many new tasks.
Loneliness can be a major challenge for people working from home and it’s important to consider how you will feel spending time alone.
Many new business owners join communities to work with other freelancers or entrepreneurs where they can not only learn business skills and network, but also socialise and connect with other like-minded people.
6. Creating a financial plan
If you have dependants or bills to pay it’s essential to create a financial plan so that you know how much you will need to earn in your business.
If you’re not sure how to go about this, a good start is to build an understanding of all your personal spending (e.g. each month). You will then know the minimum amount you will need to earn to pay your bills.
Remember that getting money into a new business can take time. Finding clients, payment terms, and becoming established can make the first few months as a business owner quite rocky.
7. Personal development
As a new business owner you will need to make sure you are investing in yourself and learning all aspects of your business (unless you intend to immediately start hiring staff or outsourcing).
Whether that’s learning the ropes of social media marketing or qualifications in food preparation, you’ll need to ensure that you have the time (and budget) to complete any training courses or qualifications.
8. Mindset
Running a business can be mentally gruelling and being prepared for this will help you grow your business.
People will often start out with lots of ideas, passion and excitement. But after several months of long hours and often failed attempts at winning work, it can become very tough to maintain a positive outlook.
To help overcome this it’s a good idea to find a buddy or mentor that can be a sounding board for advice. It should be someone you can work through problems and challenges as they arise.
Many business owners work with a coach to help them stay motivated and accountable. Check out my business coaching if you would like some one-to-one support.
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