4 Things to Consider When Starting a Home-Based Business

September 2, 2020

The idea of being your own boss and turning your passion into a business venture sounds enticing for most people and is a path that many are working towards. However, even though you’re just starting a small business, it is still a big step nonetheless.

Before you get started on your business journey, follow these steps:

4 things you need to consider when starting a home-based business

1. Do your research

At this point, you may have already established your main business idea, but turning that idea into a business plan needs to start with thorough research and analysis. Some questions that you can begin to ask yourself include:

  • What type of tangible product/service are we providing to people?
  • Are we the only brand offering this type of brand/service?
  • If not, how can we do things differently from our competitors?
  • How will my business fit the current market?

These are just a few points that can get you started in formulating a plan that can catapult you from the conceptualisation to the actualisation stage. At the end of the day, you want your home-based business to be realistic and income-generating, but also something you’re passionate about and love to do.

2. Determine your target audience

Another important part of the planning process is knowing who your target audience is. These will be the people who will be buying your product or service and without them, your business will end up not being profitable.

Across any business in the world, whether that’s a major corporation or a SME, determining your target audience is crucial as it provides you with a clear idea of whom your business will serve. As a small business owner, this will be helpful to you when coming up with ideas on how to market your products to them and the various platforms you can tap into such as social media or direct mail marketing.

3. Know your operating expenses

In a nutshell, the operating expenses refer to your business expenses that you incur on a daily or regular basis. This can be anything from materials and supplies, postage and delivery costs, advertising and marketing costs, and transportation costs (if any).

Detailing your operating expenses down to the last cent can help you measure the profitability of your business and know whether you are overspending or underspending. Failure to plan your finances can also result in the failure of your business. When you are familiar with your operating expenses, you also become more familiar with your business at whole.

4. Have a business bank account

Creating a business checking account can do wonders for your finances, especially if you are a small business owner. Separating your personal and business expenses allows you to easily track your cash flow and ensure that it is congruent with your records. It is more difficult to handle your business expenses when it is under your personal account and may cause confusion and difficulties at the same time.

Having a separate business account can also prevent the risk of legal liability and can protect you and your business.

How do I get started with a business account?

At Aspire, you can register for a business account with no monthly, fast-transfer, and fall below fees, making it the ideal business account for small business owners. If you’re not as savvy in the accounting department, the Aspire business account provides you with an integrated accounting overview, where you get a comprehensive look of your monthly financial statements.

It also features lower foreign transfer fees compared to its counterparts in the business, making it highly competitive in the market.

Find out more about opening a business account with Aspire today.

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