How To Start A Small Business At Home

Talking about business is always interesting, many things can be discussed about the business, ranging from how to start and build a business, how to develop a business to make a profit, how to attract potential customers and want to make purchases, to the theme of how to start a small business at home. Very interesting isn't it?

But what if you are currently still working and want to start a business? Of course, there are many doubts, for example not being able to focus on managing the business, to worrying about not being able to work properly. Of course, these worries and fears are natural, and everyone who has now gone into business must have felt these worries.

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It is undeniable, that starting a small business with small capital often makes those of you who are beginners afraid, even hesitant to jump in. Even though in an era that is all sophisticated, with technological sophistication, these worries should not happen. Nowadays a lot of small businesses that are managed well, can even provide extraordinary results for the owner.

What is a Small Business?

There are many definitions of small business, one of which is the definition presented by the Financial Accounting Standard Board (FASB) in Ahmed Riahi Balkaoui, which defines a small business as a small company whose operations are relatively small, usually with total revenues of less than $5 million. (Balkaoui, 2000:50).

The company generally has the following characteristics:

1. Managed by the owner himself;
2. Have several other owners, if any;
3. All owners are actively involved in running the affairs of the company except perhaps certain family members;
4. Rare transfer of ownership rights;
5. Have a simple capital structure.

According to the Small Business Administration (SBA), small businesses with annual revenues of less than $38.5 million and no more than 1,500 employees.

Usually, a small business is an individual company, and an individual company is a business owned by a sole proprietor, but an individual entrepreneur is the owner of a sole proprietorship.

An individual company is a form of business entity that is usually established by individuals and managed independently by one person. Generally capital for a company

Individuals also come from one person only. Everyone is free to develop to create a personal business without any restrictions to establish it.

How To Start Your Own Small Business At Home

Starting a small business by opening your own business at home is certainly a challenging thing, so a separate way is needed so that the business that has been started and built can be liked and visited by prospective consumers.

Starting a small business must indeed be based on the intention and willingness to start your own business.

The main thing to believe for these small business owners is to have a strong belief that the small business they have built will have the potential to achieve success in the future, let alone be done seriously.

There are several ways to start a small business at home, to achieve success, including:

1. Looking for Business Ideas

The business idea can come from problems around your environment or the target market that must find a solution. A hobby or interest can be a business idea provided there is already a market that needs it.

You may have several ideas, but don't execute them all at the same time. Focus on one business idea so that your home business is more focused and achieves the expected goals.

2. Start Creating a Business Plan

A business plan must be made even if you only build a small business at home. A business plan is an important document containing goals, vision-mission, target market, competitors, profit projections, production processes, and so on.

By making a business plan, it will make your business more directed and easy to achieve goals.

A business plan is needed to find investors or loans for business development.

3. Preparing Business Capital

There are so many options for getting business start-up capital, ranging from savings, financial support from family, and loans. Make sure the business capital is enough to execute the home business idea you want to run.

You can calculate capital needs based on goods or equipment to start a business, such as raw materials, production equipment, or business emergency funds. After calculating it, look for several sources of funding to provide capital for your business.

4. Conduct Market and Competitor Research

Market research is very useful to be able to find out segmentation and target consumers. Product marketing activities become easier because they already recognize consumer tastes.

Determine the target consumer in terms of demographics, such as age, gender, occupation, and so on.

In addition to market research, competitor research must also be done, namely businesses that sell the same type of product. You can learn their advantages and strategies in gaining profits. Also, learn the weaknesses of competitors because you can apply the solution in your business.

Competitor research is also useful so that the business you build has a unique selling point (USP).

5. Find a Product Supplier

You need suppliers to provide production raw materials or ready-to-sell products in your business.

The selection of suppliers must be done precisely and carefully because they will be business partners in the long run. The quality of raw materials or products provided is an important factor in choosing suppliers.

You can choose a supplier location close to home, where you do business so that shipping costs are not too large. If the position of a quality supplier is far from the business location, you must consider the cost of shipping the item. This problem can be overcome if you have a vehicle to transport goods from the supplier.

6. Start Promoting

Marketing is an important step in bringing in potential customers. You can rely on social media as an easy and fast means of promotion.

There are so many social media content ideas that can be used as inspiration to market products. However, try to create content that truly represents your business.

You can advertise on social media according to your budget so that your product is more widely known.

7. Conduct Periodic Evaluations

A business evaluation should be done after running the business at home for a week or a month.

Financial statements and sales results are two things that must be evaluated regularly. You can find out the results of profits or losses and sales of your business products from this evaluation.

Don't just do an evaluation, make a strategy so that your business runs better. Regular evaluation and implementation of new strategies are important keys to business development.

That's a little information about "how to start a small business at home". Hopefully, the information is useful and a reference for those of you who want to start a business at home.

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