Advancements in technology, especially communication technology, have made it much easier for an average person to start a company. At this point, a home-based business can be started by almost anyone with a good idea and a willingness to work for it.

It’s important to note that a home-based business is still a business and that it needs to be organized and treated like any other job if you want the customers to see it as such. Therefore, you need to prepare for setting up such a business and cover all the potential problems before they arise.

Choose the business type

Choosing the business type is not some small and insignificant administrative call. In fact, it’s the first important business decision that you’ll need to make. There’s a lot depending on that decision since the type determines how your company is taxed and how it will be treated if it’s sued or if it goes bankrupt.

It’s best to consult with your lawyer about this matter because the type of the company you have also determines how much governmental aid you can get and in what circumstances.

Name and brand

Decide on the name for your company and you’ll be able to build a brand and a marketing campaign around that name. It’s something that can be done only once, a rebranding campaign that includes a name change rarely works.

It’s important to consider the marketing side of things while doing so. Think about how the name will appear in emails, on business cards, and how it can be turned into a clever logo or a tagline. It should be something snappy and memorable and if possible, something that’s not overused already.

Set up lines of communication

The business needs to be reachable at all times and it needs to be a separate entity from your home, even though it’s based in it. Start by setting up a landline that is different from your home phone. Additionally, check out various mobile phone plans, such as those provided by Orange, seeing as how that can also be quite useful for your company.

Set up an email that’s based on your company name and create social media profiles that can easily be reached. At first, all of this communicating should be done by you, but at some point, it will become a distraction and it should be delegated.

A workspace

There are many advantages to working from home. It’s more comfortable to do so, and it allows you to be with your family more. However, there’s also a risk of mixing your family and professional life too much and making your business appear unorganized. It’s best to set up a workplace, that’s clearly separate from the rest of the home and to use it as an office.

It’s also a good idea to have clearly set up work hours. This will keep you productive and allow you to have more personal time. It’s tempting to work only when you want to, but try to avoid this temptation.

Cash flow

Small companies quickly realize that having enough capital isn’t the biggest financial concern. It’s more important to have regular cash flow that will allow them to cover day-to-day expenses every company needs to deal with. Being short on cash could damage your business much more than not having enough savings.

One of the ways to handle the issue is to have a credit line. That’s borrowed money just like a loan, but you’re not borrowing it all at once. Instead, you’re using and repaying only what you need at a time.


Even small, local, and home-based companies need to deal with a lot of harsh competitors these days. That’s why they need to put special emphasis on marketing campaigns. These don’t need to be expensive or professionally done; in fact, they can rely on social media for the most part. However, what they need to be is tailor-made for the needs of the customers you’re looking to attract.

When it comes to the offline world, small guerrilla marketing campaigns can also be pretty effective especially if your goal is to establish hype and not set up a large and complex brand.

Starting a home-based business can be an adventure. Make sure to prepare for it though, since it isn’t easy.