We are in the middle of the great resignation. Thousands of highly qualified workers are looking at how they can live a more flexible and enjoyable life. We took the plunge when we resigned from our teaching jobs and we are definitely loving it! No turning back now.
As a whole, humans spend much of their time at work and typically working for someone else. What a state of affairs! All the profits you’ve helped to create have gone to someone else!
So, if the last two years have you inspired to start a business from home, there are a couple of considerations.
The benefits of running a small business
There are a few enormous benefits of working from home, on your own small business. You need to decide if the benefits of running your own business outweigh the benefits of working for a company – or if you can balance both.
This might be a double-edged sword, but you have complete control of what you do and how you do it. You can choose your own clients and your own working hours. There is something so gratifying, though, about creating products and services that really lean into your skillset.
You are bringing your vision to life.
If you are in a fortunate position in life, this might not be so big of a perk. But, for many, charging what they want for their work is more gratifying and can lead to a more significant financial gain than a regular 9-5.
As someone else’s employee, you are usually limited to the monthly wage or yearly salary. Asking for a raise, or hoping for a bonus can often be met with resistance.
If you make a bumper amount, all of that cash is yours. No matter how hard you work for another company, you will not see that reflected in your earnings.
It’s Monday, 9 am, and you simply don’t feel like working right now. Instead, you want to sit and read or get some extra rest. Owning your business allows you to do that. You can create a schedule that works for you.
It also means you are free to travel and work, try out new methods, create new processes and flourish however you like.
The independence from running your own business is a phenomenal perk.
There are some cons though: you will see months that work might not be flowing so well, and prepping for that financial is essential.
Looking for saving tips to create that plump cash pillow? Read this: Bish Bash Bosh, How to Save Dosh.
Now, it’s time to look at the more practical aspects of running a small business.
What is it that you want to do? Do you have a particular skill that could work well as a small business idea? Think about a talent you have, or a passion, that could be something you’d want to do for years – or at least the foreseeable future.
Once you have an idea, it is time to create a business plan. This should cover everything you need.
A business plan is the blueprint of your company, and what it will look like now and in the next five years.
It’s important to consider all of the smaller processes, tools and functions that you will need. The marketing, will you need staff? What about storage? How will you fund your business?
These are all questions answered within your business plan. And it is your business plan that will be used when you do a pitch for funding.
Even if you have some spare cash to help you get started, you might need some funding depending on the industry you go into.
Funding can be used for anything, so long as there is a clear plan and reason.
Figuring out how much money you will require to get started will be in the business plan.
Most small businesses will be launched from home, and that works well for many. However, you might prefer to see yourself in an office or other building location.
If you have clients and customers visiting the location for face-to-face meetings, then a site away from home usually works best.
People and Services
As a single person running a business, you can only do so much. Think about what other people and services you will need to keep your business running well.
A bank manager, an accountant, and a lawyer, and a bookkeeper are just the start.
You’ll also need insurances, some members of staff, and to decide if you will have everything in-house or will outsource. IT support services, assistant or virtual assistance, marketing or PR managers – a lot to consider.
And while this looks expensive, they will keep your business running as smoothly as possible.
Sole traders often keep their personal and business money mixed. This can work fine if you are strict with your financial organisation. However, if you are applying for funding and paying invoices, a business bank account is better.
Business bank accounts are easy to set up, and keeping your accounts in order couldn’t be easier.
When looking at your finances, you should take into consideration taxes. What taxes you need to pay will depend on where you live.
An accountant is the best person to give you the correct information on the taxes you pay and can even handle it for you. Just remember to factor in taxes into your outgoings.
So while there are a lot of practical things that need to happen, it is important to keep dreaming big too. The motivation and inspiration to do well will come from the dreams you have for the future growth of your business.
How will your business look in 2 years? What about 5? What about 10?
You will have a more technically correct forecast within your business plan, but you can have a vision for how it looks outside of that.
Running a small business is a commitment to your future and the future of your finances.
All it takes is the spark of an idea and some practical planning to get it started. The key is not to rush, build the foundations to be strong, and go from there.