So, you’re thinking about setting up a home business! Maybe it’s because you think you can turn your special talent, hobby or interest into a profit-generating venture. Perhaps you think that running your own home business will give you flexible working hours and the ability to combine parenting with work. Whatever your reasons, deciding to start a home business is a big decision. It involves you, your house, your family and your community. Try our tips to take your hobby to home business.
Lead With Your Passion
Running a home business involves a lot of work and dedication! So make sure your hobby is something that you are passionate about. You need to be excited and committed, so your business needs to match your interests.
Assess Your Assets
A successful business requires that you have the right assets. Yes, sure, it’s about having enough financial security to start a business. But just as importantly, a home business must be compatible with your talents and personal resources. Some of the attributes you’ll need to run a successful home business are enthusiasm, drive, determination, discipline and creativity. You’ll need these to help you through the challenges that face every home business.
Get Government Aware
You’ll need to check whether you can legally operate a business from your house, and regulations you might need to comply with. Have you thought about requiring approval for a sign, or to have your clients park at your house? Have you got adequate insurance? Research topics like “home business rules”, “home business council approval” and contact your local council. You’ll need information on planning permits, parking, licenses, zoning, business insurance, OH&S and signage.
Prepare and Pre-plan
Most people don’t have the luxury of leaving their job and then starting the planning and preparation for their new business. Try to complete a large portion of the pre-work while you still have a regular income. Develop your business plan, including the timeline for leaving your job, and try to line up customers and sales.
Get Your Family On Board
A home business will affect the whole family. Listen to your family’s opinions because they’re investing in your business too. Are they positive and supportive? You’re not going to be at home completing family chores, so are they willing to contribute more to the day to day running of the household? Are they prepared to accommodate your work space, your materials, inventory, business records and visitors?
If your business causes problems (like parked cars or a regular stream of couriers) for your neighbours, they won’t be happy! You’ll need to consider the nature of your business and the volume of traffic and noise that will impact your neighbours. If the traffic and noise is substantial, it mightn’t be the right type of business to run from your home.
Time for Tax Tips
Home business tax rules and benefits can be complex. It’s critical that you understand your rights and responsibilities. You want to claim all deductions that you can, but you also want to set up your financial reporting and your home so that you can correctly attribute costs to the business. Take advantage of special home business tax guides and calculators on government web sites and consult an accountant or tax agent. They can provide the best advice in the early stages of setting up your business.
Set Your House Up for Success
Setting up your house to run a home business requires planning to ensure you optimise the set-up for your family and your business. Factors to consider include:
Reach for Help
When in doubt, use the many sources of government advice and support available to home business owners. There is a great deal of information on local council and small business web sites. You’ll find rich information sources and a range of experts that can help you in all facets of setting up your home business.