Money Makers: Running a Business Out of Your Home - The How-To's

Many people have side jobs in addition to their full-time careers as a way to make a little extra cash. Sometimes people enter into their side jobs with aspirations of turning them into full-time work, while others are content running their home business part time. Side jobs could be anything from freelancing in your spare time, exploring an area you have always been interested in, or finding ways to monetize passions and hobbies. Whether large or small, full-time or part-time, there many things that home business owners need to keep in mind to ensure smooth sailing. Below are a few tips to keep in mind for launching and managing your at-home business.

Create a Home Office

First begin by creating a designated home office, studio, or workspace. This could be a repurposed formal dining room, spare bedroom, attic, basement, or garage. It is important to have a designated space to complete your work to give you separation between your business and personal life. If you attempt to operate your home business out of a shared office or computer space, it is easy to be distracted by family and friends. Also check to ensure that your business can be legally operated from a residence. For example, many states require food items to be prepared in state-certified restaurants or kitchens. However, office duties for a food business could be run out of a home office while production is completed in a certified kitchen.

Invest in the Proper Tools and Electronics

When setting up your home office be sure that you have all the tools you need to do your work. This will save you both time and money. Depending on the type of business you operate, the tools and electronics you require could vary significantly. You may need a printer, scanner, fax machine, accounting software, industry-specific software, a headset, or speakers. If you are not able to invest in all of the tools and electronics you need at once, make a list of everything you require and prioritize their impact on your efficiency and productivity.

Learn How to Manage Your Finances

If this is your first at-home business, learning how to manage your finances may take some time. One of the most important factors for managing your finances is to have a separate bank account and separate company credit cards. If you intertwine your personal finances with your professional finances it will be extremely difficult to manage at tax time. Most small businesses hire an accountant to help guide them when paying their quarterly taxes, Social Security contributions, and state-mandated licenses. However, many of your weekly and monthly incoming and outgoing finances can be managed with a spreadsheet or accounting software.

Market Yourself Online and Offline

All businesses large and small, home-based or not, must market their products and services. To best market yourself, create business cards and make sure you carry them absolutely everywhere you go. Add a face to the name of your business by participating frequently in community events that attract your target audience. Create a website and social media accounts, and focus on ways to drive more targeted traffic to your online profiles.

More than 50 percent of American businesses were launched at home or still primarily operate from home offices. With the growing ability to telecommute and reach national and global clients and customers via the Internet, home-based business owners have an easier time reaching prospective clients and achieving success.

This article was provided by Mike Wallace, small business owner and young entrepreneur. If you're small business is in gardening or animal care, Mike recommends trying water storage tanks for quick access to fresh, clean water to help your business flourish. 

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