How to open a home-based business

Want to become your own boss and work from the comfort of your own home? You might want to consider opening a business on your premises. 

In this article we cover what a home-based business is and how to get one off the ground.

What is a home-based business?

A home-based business is a business that you run out of a designated space in your home. It involves selling products and/or services to customers, either in-person or online. Products can be anything from baked goods and hand-made garments to paintings and pottery, while services can range from beauty and accounting to sewing alterations and music lessons. The options are essentially endless and what you offer is entirely up to you. 

No matter what you offer, working from home has a number of benefits including setting your own hours, reduced costs, and entrepreneurial freedom. When done right, it can also help you maintain a better work-life balance.

Before opening a home-based business

If running a business from home sounds like your sort of thing, you’ll need to head to the drawing board and work out exactly what you want your business to be. From here, you can create a business plan which will be your guiding light as you establish, run and grow your business. 

You’ll also need to work out what skills and qualifications you’ll need to operate your business at the highest standard from day one, and develop and obtain them respectively. 

Whatever you do, don’t rush this step, as it’s crucial to setting yourself up for success.

Starting your home-based business

Now that you’ve laid the foundations for your work from home business, it’s time to start setting it up. Below are a series of steps you’ll need to take to open those doors and make that first sale.

Tick off those tax obligations

As with any new business, you’ll need to make sure your tax obligations are in order. You may need to register for a:

• Tax File Number (TFN) 
• Australian Business Number (ABN) 
• Goods and Services Tax (GST) 
• Pay as You Go (PAYG) withholding 
• Fringe Benefits Tax (FBT)

If you’re unsure on what tax obligations apply to your business, it may be beneficial to speak with a professional such as an accountant.

Invest in insurance

You’d get insurance if you operated a business out of a commercial office, warehouse, or store, so you should do the same for your home-based business.  

Depending on the type of business you have, this can include public liability, professional indemnity, and product liability. If you’re not sure what you need, you can always speak to a professional to work it out.

Secure licenses and registrations

Using your home as your principal place of business means you need to comply with certain regulations. These regulations are set by your state, territory, and local governments and will differ depending on your industry. You can find which ones you need here. 

Depending on what you offer, you may also need special permits relating to zoning, signage, noise levels, or health issues, so be sure to do your research. 

Last but not least, if you plan on adapting your home for your business, make sure you’ve got all the necessary Development Application (DA) documentation first.

Set up a payments solution

As a future small business owner, you’ll need a payment solution that meets your needs. Tyro Go EFTPOS reader is the perfect fit, being small, lightweight and easy to use. 

To process payments, all you have to do is connect it to your smartphone via the Tyro Go App¹ – no additional equipment required. Tyro Go accepts all major card types, so you can let customers pay how they want.  

The Tyro Go reader only requires one upfront purchase which means you don’t have to fork out any monthly rental fees and a flat transaction fee for card payments for easy budgeting.  

Being able to accept online payments is also essential to running a home-based business. Tyro’s eCommerce allows you to do just that, with handy features to make your life easier as a small business owner. This includes electronic invoicing so you can generate, send and track your invoices with ease and Virtual Terminal – a web-based tool that allows you to process payments in the one place, wherever you are.

Make accounting easy

Another key part of running a small business from home is sorting out your accounting (and making it as simple as possible). 

If you’re a Tyro customer and open up a Tyro Bank Account, you can easily integrate with Xero for seamless batch payments and integrated bank feeds, which provides seamless reconciliation – making managing money a whole lot easier.

Market your business 

If you open up a business but don’t tell anyone, you can’t expect people to engage with it. So, make sure to spread the word about your business by creating a website, social media pages, and a Google Maps listing. From here, you can send out flyers and run online ads to get your business in front of your target audience. 

Once you’ve got customers coming through your doors, be sure to invite them to follow your socials and join your newsletter to build up a community. You could even offer discounts for referrals to generate even more business (word-of-mouth marketing can do wonders!).                                                                                        

Wrap-up

In today’s day and age, there are plenty of jobs to work from home, as more people strive for work-life flexibility. If you want to become your own boss and run a business from your place, follow this guide to turn your idea into a reality. 

Ready to set up a payments solution for your home-based business? Let’s talk Tyro Go!

1 Compatible with Apple iOS 11 or later and Android^TM 8.0 or later. Tyro Go requires a Bluetooth-enabled mobile device or tablet, an app to be installed and mobile network coverage. 

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