To be honest, entrepreneurship is not for everyone. No matter how small you envision your business, the same rules apply to setting up a large business.
For example, an important requirement for starting a business is that there must be a demand for the product and services you intend to sell.
There must be a need for your services. It should also fit your goals and available resources. This is where market research comes in. You will achieve this by analysing your industry and competitors. (more on this in the article).
Also, some of us are called to be intrapreneurs, while others are better effective as employees, helping business owners execute and grow their ideas.
Notwithstanding, owning a successful business is an exciting adventure. The thrill of being your boss, having time freedom and generating additional income streams are enough reasons to tow the entrepreneurial path.
If you’ve ever wanted to start a business, more beautifully from the comfort of your home, then this article is for you.
Here we outline, a step-by-step guide to starting a successful home-based business. It also includes video resources and small business ideas you can start at home.
Without further ado let’s jump right in!
- Choose and clarify your idea: From Sephora to Dangote, every successful business started with an idea. An entrepreneur must first recognise a need or want in their environment and must assemble the factors of production ( whether land, capital and labour) to meet this demand or gap. For example, maybe you live close to a gym or are surrounded by fitness-conscious people. You soon recognise that after a workout session, people crave snacks or drinks that are both healthy and tasty. An idea could be what if from the comfort of my kitchen, I start making healthy yoghurt and smoothies and strike a deal with the owner of the gym to supply my products for a discounted rate. This is one idea. You might have recognised various needs or gaps around you. Your job as an entrepreneur is to recognise how to meet this need by pulling together the factors of production available to you to turn your idea into reality.
- Create your Business Plan: A business plan helps you organise your ideas and provides a road map to achieving success. Your business plan contains everything from your executive summary, business idea, market research, and marketing strategy to the financials of your business.
- Assess your financials: Before you start a business, you will have to overestimate the cost of launching and operation. I say overestimate because yesterday’s price is not today’s price. How do you intend to fund your business? Bootstrapping from your savings, raising funds from family and friends? Sourcing for grants? You have got to establish this aspect so you don’t quit when the going gets tough because it will. Research shows that 96% of businesses fold up after 2 years. Hopefully, it will not be yours if you do your financial due diligence. Closely monitor your financial performance, review your budget and cash flow more effectively.
- Register your business: Register your business name and obtain the necessary licenses to operate. This may vary depending on the type of business you intend to start and the location. In Nigeria, the body in charge of registering a business is the Corporate Affairs Commission (CAC). The Companies and Allied Matters Act (CAMA) stipulates that businesses should be registered within 28 days of commencing the business and failure to do so results in a default fee of NGN150 for every day in default up until the business is registered. Read more
- Set up your workspace: Set up a dedicated and convenient workspace where you can work in your home without distractions. This may include a comfortable chair and table or whatever suits the type of business you’re venturing into. Lying on the bed is an absolute no even though you might be doing social media management or content marketing. You have to put yourself in the mind frame of work. Also, ensure your environment is tidy.
- Build your brand: Your brand is the perception, the immediate reaction people have about you or your business. A strong brand identity is vital for building credibility and trust for your business. This includes your logo, social media profiles, your website, fonts and colours. However, start small and grow with time. Your brand will evolve with time.
- Market your business: Nobody will know about your business except you put it out. This is where your marketing strategy comes in. How do you intend to promote your business and reach your desired target audience? This may include social media marketing, email marketing, paid advertising, referral marketing and other tactics.
- What kind of businesses can you start from your home? The list is endless. From catering to selling beauty and wellness products to tutoring, content creation, freelancing, affiliate marketing and dropshipping. Check out our article on 10 businesses you can start in Nigeria with less than N100,000.
- Separate your savings from business funds: One of the biggest mistakes, entrepreneurs make is not paying themselves a salary. Another is mixing up your business and personal savings. While keeping your business alive is a priority, paying yourself first through consistent savings and investing is a non-negotiable. Prioritise financial and personal self-care. Have Emergency Funds to deal with unplanned expenses. With the HerVest app, you can save and invest towards your goals while earning highly competitive returns on your money. Download the HerVest app to get started.
Conclusion.
The internet provides many opportunities for new and aspiring entrepreneurs to start businesses from the comfort of their homes.
With the right idea, an effective business plan and discipline you can turn your passion into a business that earns you money.
Are you an aspiring business owner? Do you have any questions regarding growing your business, then leave us a comment and we’ll get right back.