How to Start a Cheap or Free Home-Based Business

Woman working at home as a consultant.

You're tired of job-searching in this tough economy. You've always thought of starting your own business but stalled because of fear of failure and perhaps even fear of success. If you offer services instead of goods, your overhead can be a lot less than a sales business. You already have the tools, such as talent and special skills, and with a few additions, you can get started in your own business.

Things You'll Need

• Notebook or computer
• Business plan
• Office supplies for your specific type of business
• Books or articles on starting a business
• Notebook or computer with spreadsheet for inventory

Instructions

Where to Start

1. 

   Man working at his home law office.

   Figure out what type of business you would like to start. Make a list of your strengths and focus on those. If you work in a specialized industry such as law, accounting, bookkeeping, or web designing, these professions easily lend themselves to working at home. You'll need a desk and some office supplies but you won't need much more than that except for items specific to each business. A lawyer, for example, may need a legal search engine for the computer. Shop around for the best deals, since prices vary.

2. 

   Organizing your business is key before starting.

   If you do not work in a specialized industry, write down other ideas that could be turned into a business. If you're an English major or former teacher, you may want to consider tutoring or consulting. If you're a musician, you can give music lessons. If you've always wanted to write, you may want to start writing from home to supplement your current income. You'll know when the income is sufficient to leave your current position and devote all your time to your home career.

3. If you want to do work that requires physical activity, consider house cleaning, dog-walking, photography or snow removal. Babysitting and house-sitting are some other ideas. There is no limit to what you can do from home. You can also sell goods from home, but this may be a challenge because of the economy. Accordingly, a sales business may require a product that will do well in this economic climate. If you can sell your product on the Internet, you may fare better than if you just had a local sales business.

Turning Your Idea Into a Business

1. Visit your local Career Center to get information about writing a business plan. Consider whether you need to consult with an attorney to incorporate your business to insulate you from potential lawsuits. Consult with an insurance company to see how you can insure your business.

2. Most of these businesses require very little investment to get the business started. There may be some local newspapers that have free advertising or relatively inexpensive advertising. Purchase some colored paper and make some fliers, which can be placed on local bulletin boards or in certain stores. Have some business cards made or make them yourself on your computer.

3. You've been looking forward to trading your work clothes for some comfortable clothes, although you'll need to dress up when dealing with the public. Make sure you wear the right clothes for the job. If the job is white-collar, have a place to meet clients. If you don't want clients in your home, consider paying rent to a local business so you can use their conference room when needed. Many businesses will not charge much money for occasional use of their conference room, especially if you give them advance notice.

Tips & Warnings

• Make sure you thoroughly research your competition.

• Make sure you are making enough of a profit before you leave your current employment.

References

• Home Business Center Inc.: Start a Home Based Business