Kickstarting your first venture from the comfort of your home can be exciting, as your future will be in your hands. However, there’s more to running a home-based business than creating an attractive office space, building a website, sourcing products, or refining your services.
It is imperative you not only have a rock-solid business plan in place, but you also need to gain an understanding of your finances and protect your company from legal repercussions.
If you want to ensure you don’t put one foot wrong, find out what to do after you’ve set up your home run business.
Organize Business Insurance Cover
There are various insurance policies available that can protect your organization from various risks, such as workplace accidents, cybersecurity attacks, professional negligence claims, sickness, and more.
The insurance cover you choose should be determined by the nature of your business. To select the best option for your needs, you should consult Hiscox to identify the insurance required for small business ventures.
Learn About Your Company’s Tax Requirements
There are currently various types of federal income taxes that US businesses will need to pay to the IRS. Depending on the business structure you have chosen, your company might need to pay some or all of them.
To avoid legal and financial consequences, you must find out more about the following six types of business taxes:
- Income tax
- Self-employment tax
- Employment/payroll tax
- Excise tax
- Property tax
- Sales tax
If you are unsure how or where to get started, it might be beneficial to hire an experienced accountant to help your home-run business effectively adhere to its tax obligations and manage its finances.
Open a Business Bank Account
It is critical to separate your home business’s finances from your personal bank account, which can avoid confusion that could cripple your business or impact your home life. Once you have taken the steps to kickstart your venture, you should open a business bank account, which might be a legal obligation depending on your business structure.
Write a Great Business Plan
Don’t assume you don’t need to write a business plan because you’re running a company from your home. It will provide direction regarding your company’s marketing campaigns, sales strategy and business finances. The informative plan can also help you to secure a loan from an investor.
Running a home-based business will require you to serve as owner, marketer, sales representative and bookkeeper, which can place a great deal of stress and pressure on your shoulders each day. If you want to grow your revenue without growing your team, you should consider outsourcing various tasks to qualified freelancers.
For example, you could:
- Hire a web designer to create a professional site
- Outsource writers to produce high-quality web content
- Invest in a virtual assistant to answer calls on your company’s behalf
Freelance services could ultimately help you to scratch essential tasks off your list, so you can focus on big picture projects to grow your brand recognition and profit margin.