When starting a home-based business, there are a number of things you need to consider. Although it can be extremely rewarding there are things that you need to watch out for and makes sure you have the steps in place to deal with them.

Sometimes you have the idea, but you are lost as to where you should be starting and how exactly to get the ball rolling. 

Have a look below at nine of the things you need to consider when starting a business: 

Your Company Name 

One of the first things you need to decide upon is the name of your business. You need to be recognisable and memorable.

So, what are you going to call your new business? Are you going to describe what you do within your name? What you stand for? Or are you going to choose something that is abstract and unique to your company?

If you think that you may become a limited company in the future then you need to make sure you check that the company name hasn’t been used before. Have a look at companies house, you can check for existing businesses there.

The last thing you want to do is build a reputation with a certain name to later find that you can’t use it and need to amend it. 

Company Structure

You need to look at which structure is going to work best for your new company. Are you going to be a sole trader, limited company or perhaps a business partnership?

Deciding this is going to have an impact on the responsibilities your business will have such as what paperwork you need to complete and when you need to complete the taxes you pay, how you take the profit out and what you need to do if you incur a loss.

When looking at your company structure you may want to look at commercial law and familiarise yourself with the requirements. 

Your Customers 

It goes without saying that in order to make any money out of your business, someone will need to buy your products and/or services. Completing market research is an essential step towards starting a successful business, and keeping it successful.

So before you invest a penny in marketing materials, tools or equipment, make sure you know who will buy from you, and understand what they want or need. You need to be able to show how you can help them. 

Your Prices 

Once you know what you’re offering and who your customers are going to be, you need to make a decision about how much you’re going to charge.

This is going to largely depend on what the current market rate is and what value people place on your products or services. This means that once again you need to conduct some market research in order to find the answers.

Have a look at what similar business are charging for similar things. You also need to think about the quality that you’re offering; are your products or services value or premium? Then look at pricing accordingly.

Your Workspace 

When starting a home business you need to find somewhere comfortable and quiet to work. Simply clearing a space on the kitchen table surrounded by everyday life isn’t going to cut it.

Instead, you need to find an allocated area for you to be able to focus. Think about laying out documents, designs and being able to spread your workaround so you can easily identify the areas that need your attention.

If you’re comfortable with it you could consider renting a small desk in a co-habiting office space, this is something that many small businesses do once they outgrow working from home.  

Equipment

Regardless of your business ideas, you’re most likely going to need some equipment. Even if it just a computer and a printer. Make a list of everything you might need before you even get started.

You need to think of what it will take to have your business running smoothly. You should also consider the quality and efficiency of the equipment, you are using and if it’s adequate for completing the job at hand.

If you need to purchase anything, be sure to keep the recipients, as you can use this for expenses when you do your taxes. 

Business Bank Account 

When it comes to completing your taxes, you will be thankful that you had a business bank account set up. It makes it much easier to be able to see what’s coming in and what’s going out of your businesses funds.

Try to keep your personal finances completely separate. You could always opt for a second personal account for your business, but if you're planning to expand your company in the future, or borrow money for the business, it's worth starting out with a business account.

An Accountant

Many small businesses deal with their finances themselves, and there is nothing saying that you can’t do this, however, an accountant could be a wise investment.

It will not only save you hours of frustration but also help to ensure that your accounts are legal and above board. Using an accountant can actually save you money in the long run too, they are there to help make sure you’re making the most out of any tax breaks. 

Marketing 

You could have the best of best product or service, but if no one is aware of you you’ll never turn it into a success story. There is numerous way that you can market your business. From going simple and using flyers to using the most up to date methods such as social media.

Establishing a web presence nowadays is essential to being successful. If you have a low marketing budget, platforms such as Instagram and Facebook are great for doing this.

If you’re struggling to come up with a plan of action or are concerned with maintaining platforms like this you could always opt to use a social media manager or freelancer. If you have a law firm for instance, then you may want to look into Law Firm Business Development services, who can provide you with a targeted approach as well as ongoing support as you build on your business.

These nine areas are important areas of consideration when starting a business, there are many others, do you have any that should have been included in this list?