The BizFilings blog covering business tips and trends.
Suggestions for the Home-Based Startup
Published on Jan 21, 2011
Read 'Suggestions for the Home-Based Startup' at 'Time to Start Up,' the small business blog by BizFilings.
Over the past few years, encouraged by the advent of mobile and cloud-computing technologies, home-based small businesses have become increasingly commonplace.
The Small Business Administration recently reported that more than half of the country's small businesses are home-based services, equating to more than 15 million companies that generate upwards of $500 billion per year.
Despite this sector being only expected to grow larger, entrepreneurs forming a company from the comforts of their homes should make a few considerations before moving forward.
Obviously, the primary appeal of working from home is not having to pay rent, utilities, maintenance or other office-related expenses. And this can even eventually attract the attention of investors. "Bootstrapping in this fashion creates a lean, efficient business model that will appeal to investors and buyers later on," home entrepreneur Sam McRoberts, founder of Vudu Marketing, told Inc. magazine.
Still, the lack of an office can come across as unprofessional to many prospective clients or partners. Accordingly, home business owners should rent meeting spaces when appropriate and promote an attitude that is as serious as any other office-based business.
Starting a home-based business has many rewards as well as challenges. Visit SBA.gov to learn more about starting a home-based business and important legal considerations for running a home-based business.
If you are currently running a business out of your home, make sure you are getting all of the home office tax deductions you are entitled to by taking a tour of the Home Office Deduction Tool on Toolkit.com.