In 2018, small business portal FlexJobs published a report titled State of the Remote Job Marketplace, which estimated that nearly four million Americans are engaged in a self-managed economic activity from home at least three days a week. This figure includes freelancers and individuals who may also be working on a full or part-time basis, and it is equivalent to 2.9 percent of the active workforce.
More than half of all small businesses in the United States start at home, and this is a trend that will likely continue to increase as more Americans enter the “app economy.” The best time to start a part-time business from home is when you’re already generating income from at least one source, including income earned by another household member. If this is your current situation, here are some steps you can take to get started.
Evaluate Your Options
The first step is to assess your talents, skills, potential, and current situation, which will reveal your options. Skills are easier to convert into freelancing activities, while talents are usually better suited toward an entrepreneurial opportunity. Let’s say you work at an accounting firm. This is something you can leverage to offer your services as a bookkeeper on an online freelancing platform. If you have a talent for digital marketing, you could look into becoming a white label distributor on the third-party Amazon Marketplace.
Generate Home-Based Business Ideas
Not all businesses are suitable to be managed from home. E-commerce entrepreneurs can partner with drop shipping companies and handle logistics through Fulfillment by Amazon centers so everything can be managed from a home office, but this will not be the case with a pizzeria.
Plan Your Business
The best approach for this step is to seek the assistance of a mentor or a business planner. You will need a business plan that looks at the profit angle and how much you’ll need to invest to get started. Moreover, your business plan should also cover financing and operating expenses. The two main issues your business plan should address are viability and income, which should be superior to a part-time job. The reason you need a mentor or a San Diego financial advisor is to ensure you do not overlook requirements such as commercial insurance, permits, licensing, tax reporting, and compliance.
Skip the Work-at-Home Ads
Unless you’re willing to invest in a reputable franchise, stay away from work-at-home offers that sound too good to be true. Accepting assignments from freelance platforms at an agreed pay rate is not the same as shelling out a few hundred dollars for a work-from-home guide that consists of a business plan template and a few paragraphs of advice. The right way to start a home-based business is to develop it on your own.
If you have a brilliant idea and wish to start a part-time business soon, you might need the assistance of a personal financial advisor. San Diego, CA, residents and business owners can place their trust in Jan Gleisner. To get started with your part-time business with a strong financial plan, call 858-337-2385 to schedule an appointment.