There are a lot of things to consider as you begin to work on starting a business. Entrepreneurship can be a very rewarding vocation, but it can also be daunting, challenging, and full of risk. Starting a business is no small task, and thinking about the large amount of time, effort and money one must invest into a business to get it up and running can discourage even people with great ideas from working to make the ideas a reality.
Here’s the good news: you (yes, you) can start a business. Sure there is risk involved, but the risk can be significantly reduced with a little research, planning and hard work. Of course there are unknowns and self-doubt, but they can be met with confidence by a determined entrepreneur who is willing to make the necessary changes to help their business succeed.
Hard work, determination and courage are all necessary traits to bring to the table, but that isn’t all you need. A practical knowledge of how to start a business is an integral part of the small startup process. For example, an important factor to consider while working to start a business is the overhead cost. How much money will you need to spend before the business ever opens to get the ball rolling? Obviously, the lower the overhead cost, the better. One of the easiest and most effective ways to lower overhead costs is to start your small business from home. If you’re considering starting a business, and are looking to reduce your startup costs, here are some tips for how to start a business in your garage.
Come Up With a Good Idea
What constitutes “a good idea”? If you’re looking to run a small business from your garage, a good idea is one that:
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- Fits in your garage. Not every business can be run out of a garage. A business attorney, for example, would have a hard time getting their clients to take them seriously if they held meetings in their garage, and something like a used car dealership would obviously be impractical because it would not fit.
- Doesn’t require a lot of expensive equipment to get started. Remember, the point here is to reduce overhead costs (and therefore the financial risk) as much as possible. That said, the less expensive equipment you need, the better.
Prepare Your Garage
Odds are pretty good that your garage is not currently an ideal place to start a business. Before you use your garage to host your startup, you’ll probably need to:
- Clean and organize the space. Keeping your new office tidy will help reduce stress levels and improve efficiency, not to mention give clients a better first impression of your company if they ever visit your location. If you have too much stuff and not enough space, renting a storage unit can help minimize workspace clutter.
- Invest in security. Most garages are less secure than you may think. It is a great idea to invest in some sort of security to proactively prevent break-ins.
Consider Your Legal Obligations
It is important to take your legal obligations seriously to avoid pitfalls and prevent any legal problems from destroying your business. Some things you will need to do to handle your business from a legal perspective:
- Register your business name with the state. Do some research to determine what kind of business structure (LLC, corporation, etc.) suits your company best, then register your business accordingly with the state.
- Get a tax ID number. These are issued by the IRS and it allows the IRS to track your company’s expenses and make sure you are paying the appropriate amount of taxes.
- Obtain any needed permits. Depending on what your business is and where it is, you may need a variety of permits before you start your business.
Roll with the Punches
Once your company is established both physically and legally, it’s time to open for business. This is where the rubber meets the road, and how you handle your day-to-day operations and all of the unexpected difficulties that may arise will play a large role in determining how successful your business will be. Some of the most common challenges small business owners face are:
- Getting people to take you seriously. Because your business is in your garage, some customers might not take you seriously. You can help them take you and your business seriously by being professional and keeping your workspace tidy.
- Making mistakes. Let’s face it: you will make mistakes. Everybody does. When you do, don’t let it derail your momentum. Learn from them and recommit yourself to making your business work.