The Costs of Starting a Home Business

Image Source. Licensed under Creative Commons  This is a collaborative post that may contain affiliate links.

Image Source. Licensed under Creative Commons This is a collaborative post that may contain affiliate links.

Starting a business from home can save huge costs compared to renting out a workspace, however you may still need to budget for certain business expenses. Here are a few costs to consider when starting a business from home.  

Equipment

Some businesses require only a computer and a phone. For other work such as tattoo art, you may need to splash out on a large amount of equipment including a work chair, tattoo machine, needles, needle cleaner and all manner of other kit. Make sure you’ve got all the essential kit that you need to carry out your work to the best of your ability. There may be certain equipment that you already for home use that you can also use for business use such as a computer and phone, however you may prefer to buy separate items of equipment for business use.

Software

It could be worth paying for software to help speed up various admin tasks such as accounting and invoicing. There are free programmes out there which may be suitable for some small businesses. Always read reviews of software so that you know you’re using the best quality programme for your business.

Stock

If you’re planning an online retail business from home, you’ll need to stock up your inventory. It’s worth buying lots of each item to begin – over time you can adjust how much stock you store depending on which items are popular. If you’ll be selling perishable goods such as food, take into account the expiry date – you don’t want to stock too much only for half of it to expire and then go in the trash.

Marketing

Getting exposure for your home business will require doing some initial marketing. It’s worth hiring a professional web designer to build you a website for your company. You could also consider investing in SEO to help boost your website’s search engine rankings so that people find you more easily when searching related queries. If your business is local, printing off flyers and investing in local newspaper ads could be a useful form of advertisement. Certain types of business may also benefit from specific types of marketing. For instance, if you’re starting a home-based plumbing business in which you’re likely to be out on the road a lot, you may want to invest in branded vinyl wrapping for your vehicle. Along with equipment, marketing can often be one of the biggest initial costs of starting a home business, so make sure you’ve set aside enough funds.

Utility bills

Running a business from home could increase your home utility bills, as you could be using more electricity. Certain businesses such as a cake making business could even use up large amounts of gas in cooking. You’re unlikely to notice these running costs until you’ve started your business, but it’s worth preparing yourself for. Investing in energy-efficient machinery and making green improvements to your home could help to lower your utility bills.