When you have a true skill, something that others will pay you for, starting a business is the next logical step. A home-based business offers great flexibility and freedom that you didn’t have when you had a 9-to-5 job. You can work with clients while perfecting a hard-earned skill when you start a service-based business. Follow this quick guide and learn some tips for starting a service-based business.
1. Choose a name for your company quickly
It may surprise you, but your company name isn’t the most important part of starting a business. Choosing the perfect company name is a process that many people agonize over endlessly. You shouldn’t. While you’re waiting for the perfect name, you’re also waiting to start making money. Put aside branding, USPs, and all that business-identity stuff for now.
It is simply a matter of picking a name so that the administrative process can begin. Make sure the name of your business identifies your services. You could name your company Mike’s Creative Design, for example, if you provide graphic design services. This simplifies the process of naming your business and removes confusion.
2. Creating a secure email account
The importance of email security is more prominent than many service-based businesses realize, especially if you will be communicating sensitive information, such as payments or addresses, with clients via email. It is easy for hackers to gain access to your email if it is not properly encrypted, especially if you are targeting small businesses.
In order to get started with a business, most home-based business owners will use a free email service like Gmail. It is a great way to cut costs, and it also offers a number of benefits that are beneficial to businesses. It is not necessary for you to pay for a commercial email account, but you should encrypt your Gmail account to ensure the safety of your personal data and your customers.
3. Prepare for tax season
Your mortgage payment can be deducted from your monthly utility expenses and the cost of your “office space” if you own a home-based business. It is important to be prepared for quarterly payments and self-employment tax (if applicable).
There is a requirement for business owners to pay taxes every three months. Your payment will be calculated based on your estimated income, which you won’t always be able to predict ahead of time. In order to make those payments on time, it is imperative that you have a little cash on hand.
4. Organize your finances
There is a very common problem that new businesses face when it comes to cash flow. As a matter of fact, 82 percent of small businesses close prematurely as a result of cash flow problems. It is the priority of most entrepreneurs to get enough investment capital to get started, but they tend to fail to stay organized while running their businesses as a result.
Mistakes in the organization of your business’s finances can have a detrimental effect on your business. Good accounting software such as Zoho or FreshBooks will allow you to keep track of your spending, set savings goals, and remain on top of your budget by monitoring your expenditures. In the early stages of your business, overspending could spell disaster for you.
5. Spread the word using social media
As a home-based business, you will not be able to survive without the internet, and social media will be your best tool for marketing your business. Research has shown that word-of-mouth marketing is the most powerful form of marketing, with more than two-thirds of customers consulting others, even complete strangers, about their purchase decisions before making one themselves.
A business does not need to have an account on every social media site. It only needs to have an account on the ones that are relevant to its business. Considering that Facebook and Instagram are the two most popular social media platforms, they are ideal for most businesses. Bloggers, crafters, and home improvement specialists can find Pinterest useful, while businesses offering services such as plumbers and other service providers may find Google + to be the best option.
However, home-based businesses come with their own challenges. As a residential business, you won’t benefit from passing traffic or the benefits of joining the Chamber of Commerce. All the legwork must be done by you, and if you have the right tools, you’ll succeed. It is your ticket to success and freedom in the working world if you plan carefully. Your future depends on the steps you take now. So follow this article and prosper by learning all the tips for a service-based business.