How to run a small business from home

It is not always necessary to rent or lease commercial space to run a successful business. You can start and run your business from the comfort of your own home. Running a home based business allows you to make a profit without having to deal with the high overhead costs typical of a traditional business setup. It also avoids long trips. However, running a successful small business from home isn’t always easy. The home businesses they require investments of planning, time and effort.

Steps to running a home-based business

1. Brainstorm about home-based businesses that suit your talents and experience. For example, if you are a resourceful person, consider starting a gift shop business or flower arranging service. If you have a technical background, start a computer repair or technical support business.

2. Determine how you are going to finance your business. You can, for example, use your savings to start a business or ask friends and family for funds to help you get started. You can also consider traditional credit cards and loans while planning your business.

3. Meet the business license requirements in your state and city or town. You will most likely need a business license to run a business from home. You may need additional licenses and permits to run certain types of businesses. If you have a day care home, for example, you will need a day care license. If you are preparing and selling food, you may need a food preparation license. Contact your state or city business registration office for requirements in your area.

4. Prepare a business plan for your home business. Having a business plan helps you stay on track as you start and run your business.

5. Open a business bank account to avoid mixing your household funds with your business funds.

6. Create space to run your business. The amount of space you need to run a business from home depends on the type of business you choose. If you need an office, clean a bedroom or basement for this purpose. Some businesses can be run from a kitchen table. If you store produce, consider shelving in an unused garage or walk-in closet for storage.

7. Establish working hours. One of the keys to success in business is developing a routine. If you don’t set work hours, your business can invade your personal or family time. Similarly, you can put off important business tasks in favor of doing things around the house.

8. Develop an accounting system. Buy a filing cabinet to keep receipts, bills, and statements, and use a ledger or computer program to record entries and expenses.

9. Secure your business. Many homeowners or rental policies do not cover damages or injuries related to the business use of your home. Your insurance agent can recommend business insurance that adds liability coverage to your current policy or purchases a new policy altogether.

10. Take tax deductions for the business use of your home. If you have a designated space to run your home business, you may qualify for deductions on your federal income tax return.


If you run a home-based business, you may feelIR You are tempted to work extended hours to ensure your success. It’s important to schedule downtime for things you enjoy or socializing with friends and family members. Scheduled downtime helps you avoid burnout.


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