home business plan

Starting a Business | How To

How to Start a Small Business at Home

Published April 8, 2024

Published Apr 8, 2024

REVIEWED BY: Mary King

WRITTEN BY: Karina Fabian

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This article is part of a larger series on Starting a Business .

Starting A Business?

Step 1: Find a Winning Business Idea

Step 2: conduct market research, step 3: define your unique value proposition, step 4: test your home business idea, step 5: create your budget, step 6: write a business plan, step 7: handle the legalities, step 8: set up your business finances, step 9: finance your home business, step 10: set up your space, bottom line.

Thinking about starting a small business from home? You’re in good company. Half of all small businesses begin in the home. Some of the most notable are Microsoft and Amazon, but hundreds of thousands of small-business owners are able to make a living working from their own house. They do it to be their own boss, achieve better work/life balance, and make their interests work for them.

We cover how to start a business from home in 10 steps. Some take some work and deep thought; put that effort in now to ensure a greater chance at success later.

Most people choose to start a home business to be their own boss and work on their own terms. (Photo: Pixabay)

If you’ve already done this, excellent! Move on to testing your idea on the market. If not, however, you’ll want to take stock of your skills and interests and match them against business models that work from home.

The possibilities are limited only by your imagination. People have made profitable businesses doing everything from website design to furniture reclamation to being a professional friend. Here are a few just to get you started:

• Dropshipping
• Handcrafted items
• Bookkeeping
• IT/website development
• Services—home business does not mean being stuck in the home—like pet care or landscaping
• Upscaling/Reclaiming

Another good way to brainstorm is to start with what you know and are good at. Think back to the skills you’ve developed in school or at other jobs. Are any of those skills something that you can offer to multiple people or companies? Say, for example, you were a secretary at a small company. Your duties might have been:

• Social media campaign
• Newsletter creation
• Event organization
• Creating and maintaining a filing system
• Overseeing project progress
• Keeping the boss organized and on time

You could start a home business from any of those skills alone, or you could offer yourself as a virtual assistant and do a few of these for multiple clients.

For more suggestions and information, check out our articles:

• How to Come Up With a Business Idea
• How to Choose a Business to Start
• Best Business Ideas to Make Money
• Crazy Business Ideas for Entrepreneurs

Can your business idea be run from home?

As you consider ideas, think about how this business will fit into your home life. Do you have the space? The time for the projects? What safety considerations are there (consider your children—can you keep them away from the chemicals and tools for the home business?). Finally, consider if there are any regulations that prohibit you from doing the kind of business you want in a residential area.

Only 2% of people start a business at home because they saw a need in the market. The majority are pursuing their passions. That said, if you don’t have customers, you don’t have a business. Thus, doing market research before you start can save you some heartache. Here are some quick steps:

• Identify your target market: This is the general group of people who will be interested in your product: CEOs of small businesses, indie bookstores, upper-middle-class homeowners, busy parents, people with clogged sinks.
• Create your customer persona: Now, you go deep. Imagine your perfect customer: their age, gender, personality and preferences, pain points, reasons they’d need your product, and where you’ll find them. You can make several of these for each type of customer you’ll target. You’ll keep these personas in mind when doing your marketing and advertising.

The more detailed your customer profile is, the more personally you can reach them in advertising.

• Identify your competitors: These are the businesses that offer the same kinds of products in your area (whether local or online). You can do an internet search, check with your local chamber of commerce, consult Yelp or other business review sites, and look at ads in your local paper. (Once you start digging in, chances are that ads for competing businesses will also show up on your social media.)
• Compare your competitors: Once you’ve identified them, you need to see how your competitors stack up against what you can offer. This can help you find your niche as well.
• Check the market saturation: Before you go any further, ask yourself the big question: Do customers already have enough choices? You are less likely to succeed in starting a business from home if the market is already saturated. Look at the number of competitors vs the number of people interested in your demographics. You might also look at success rates for your type of business and consumer trends for your product or service.

As you researched the market and competitors, you should have gotten a good feel for what people want vs what everyone else provides. You may have even seen what you can do differently. Now, you need to clarify that into a unique value proposition. This is something you can do better, faster, cheaper, or in a way that no one else is doing that will appeal to your customer profiles. Don’t forget that you personally can be part of the value proposition.

Some examples:

• Hair styling in their home vs at the shop
• Custom desserts where the customer chooses the ingredients
• Custom training videos narrated by a professional comedian (you)
• Refurbished antique furniture at mid-ranged prices
• IT solutions that include one-on-one training at a cheaper price point than most large companies
• DIY marketing consultations

A key step in how to start a small business at home is testing the waters. This gives you a low-investment chance to make sure your product works, your target customer will like it, and that you will enjoy the work yourself.

When testing your product, aim for your ideal customer rather than family or friends, who may be biased toward praise. This may take some advertising and time but is worth it in the long run. Here are some ideas:

• Offer freebies: Consider offering your service or product free to influential clients in your target market. Be sure they understand you are looking for an honest review. This gets you publicity and builds your portfolio. If there are issues, you can learn from your mistakes.
• Do a Beta Run: Beta runs are most often seen in software, where a new product or version is offered to a select group to get feedback. In this case, you’re offering your product or service to a select group of people to get their feedback. You can do this as a free service or at a reduced price.
• Use the “fail fast” method: This philosophy of business encourages the rapid release of products so that you can learn from your mistakes, improve quickly, and continue on. It can be a risky venture, but many companies have used it successfully. If you want to start a home-based business but aren’t fully sure exactly what you want to do, this can be a quick way to discover a passion that works.
• Work part time: You don’t have to quit your day job to start a business at home. Work it part-time while using your current job to pay the bills. Then as you grow, you can transition.
• Crowdfund: This is a great way to test the market and raise funds for your business. Learn more in our article on how to crowdfund your business and our article on the best crowdfunding sites for more.

You’ve probably spent or raised some money while testing the waters, but now is the time to create a budget to get your business officially off the ground. The Small Business Administration estimates that you can start a micro business for as little as $3,000, or possibly even less. However, this statistic comes from 2018—pre-COVID-19 and the subsequent inflation. Other statistics say it can run from $5,000 to $40,000 for the first year. The SBA offers a spreadsheet to help you calculate costs.

Here are some expenses you can expect:

• Computers: $1,000–$5,000
• Internet and communications: $80/month for internet
• Website or online store: $30–$200/month, plus development ($5,000–$15,000) if you hire out
• Advertising: Usually by pay-per-click with you setting daily limits
• Supplies: Varies by business
• Tools: Varies by business
• Software: Might include point-of-sale software, inventory software, or programs specific to the services you provide
• Labor: $7.25–$15+ Check your state or local minimum wage
• Storage: Varies by business
• Shipping or transportation: Varies by business
• Business insurance: Depending on the business, you might need general liability, property, transportation, or (if hiring employees) disability and unemployment insurance

Next, create a financial projection of expenses and potential profits over the next three years. Not only does this help you know what to expect (like can you really quit your day job?) but is also needed for Step 6 below.

Check out our article on how to create a small business budget and our free templates for sales projections .

Whether you’re a dog walker or starting your own line of handbags, you should plan a budget for your business. (Photo: Pixabay)

A business plan lays out all the important aspects of your business: product or service, market, budget, advertising strategy, and management. The good news is, that you’ve already done most of the work! We have an article that details how to create your business plan in seven easy steps . You can also find a lot of small business organizations and even some nonprofits that are glad to help you with this phase of your journey.

A business plan is vital if you are looking for funding. It can help you with advertising, too. Plus, it makes your business clear in your mind.

An important step in how to start a small business at home is to take care of all the legalities. Working from your house does not exempt you from certain state and federal regulations, and indeed, there may be some restrictions on what you can do in a residential area.

• Check zoning: Before you officially start a small business from home, consult your local zoning office about what you can and can’t do. For example, you may be able to restore classic cars in your garage as a hobby but not as a business.
• Check health code regulations: If you are dealing with food especially, there may be health code regulations you need to follow even in your own kitchen.
• Check if you need liability insurance: You may be required to have this kind of insurance if working in people’s homes, for instance.
• Check employment laws: If you plan to start a home-based business that includes employees, then you need to know the applicable labor laws.
• Get a home occupation permit: Starting a business from home that includes employees, product creation, or customers coming to your home can affect the neighborhood. In this case, you may need this permit that shows you are not adding significant traffic, noise, or harmful environmental conditions to your area.

Get a Business License

Registering your business with the state is vital for tax and legal purposes. There are several kinds of licenses. Visit the Small Business Administration website for an explanation of the different types. Here is a general list with pros and cons:

Learn more in our guide comparing LLC vs S-corp vs C-corp .

Get your Employer Identification Number (EIN)

You need a federal EIN if you have employees or make sales where you pay taxes. It’s easy to do. Once you have your license, file a form SS-4. If you are a sole proprietor, you don’t need this; just use your Social Security number instead.

It’s important to keep business finances separate from personal ones. It helps with taxes and can keep you from feeding too much personal money into your business. Even if you are starting a home business as a sole proprietor, having separate accounts, credit cards, and financial tracking will get you started on the right foot for when your business grows.

• Business Bank Account: You definitely should have a business checking account, but a business savings account or Business Certificates of Deposit account are great ideas for putting away money for the future or emergencies. In some cases, you might be able to open one up with your personal bank, even as a personal account under your company name. However, many business accounts come with benefits. Keep an eye out for bank fees, minimum balances, and other “gotchas” that can hurt your profit.
• Business Credit Card: Having a separate credit card for small or sudden business expenses keeps the debt off your personal credit score (unless you’re a sole proprietor) and makes it easy to see where your business funds are going. At the very least, have a separate card for this purpose. See options in our roundup of top-recommended small business credit cards .

Most entrepreneurs who start a home-based business get the seed funds from their personal finances. However, that is not your only option. Here are some ways you can get others to fund your business for you. Hint: Here’s where all the work on the business plan pays off!

• Ask friends and family : This is a personal choice, but according to Lendio, 12% of SMB owners sought funds from friends and family . If you do this, it’s a good idea to have some legal paperwork to define terms of repayment or ownership if you offer part of your business in return.
• Peer-to-peer lending: P2P platforms match investors and businesses for small business loans. You’ll pay interest on these, but can generally get funds quickly.
• Crowdfunding: We mentioned this earlier when testing your market, but you can create crowdfunding campaigns for expansion as well as starting a business from home.
• Use credit cards: These generally have higher interest than other avenues, but are a quick solution for fast purchases. If you find a credit card with 0% interest for the first year, however, this could be a sound solution.
• Rollover your retirement funds into the business: If you are a C-Corp, a Rollover for Business Startups (ROBS) lets you invest retirement funds in a new business without paying taxes or early withdrawal penalties. It can cost up to $4,000 in setup fees and you need at least $50,000 in your retirement account to qualify.
• Apply for an SBA loan: While the Small Business Administration has loan guarantee programs, it’s hard for a home business just starting to get one. To qualify for an SBA loan, your credit score must be above 680, and you need to be able to put up collateral for the loan like real estate property. If you qualify, you can borrow up to $250,000 but expect to pay an annual interest rate of 6% to 9%. They generally only guarantee loans to businesses that have been running for a few years. Microloans (under $50,000) are your best bet here. Check with your bank or one of the best banks for small business loans .

This may be the most fun, but it can also be time-consuming. Your space includes both physical and online presence; a working area, an office area, and even signage in your yard. It may even include home vs work scheduling. Here are some tips on how to start a home business environment:

• Plan for separation: It can get frustrating when the business papers get mixed in with the kids’ homework, so make an area that is truly designated just for your business. At its simplest, it can be a file box where the office paperwork and supplies are left, or you might have a room just for work. (In that case, you can get a tax break on that room!) The same thing goes for supplies, especially for baking or crafting. This also helps you track consumption and helps ensure items are not misused or contaminated.
• Create your online presence: The easiest way to make yourself known is with a website. It does not have to be complex—even a simple page with who you are, what you provide, and contact information can work, but be sure it looks professional and is optimized for search so people can find you easily. You should also have a social media presence dedicated to your business that is separate from your personal accounts. Use it only for business promotion, although you can post on-brand memes and casual posts.
• Decorate on-brand: If your space will be open to customers, it’s important that it feels like your business and not just another part of your home. Consider decorating for the impression you want to make on your customer: are you all about efficiency? Relaxation? Coziness? Think, too, about your brand colors. Have your logo on the wall where it can be seen. A separate entrance can add safety as well as separation.
• Be seen, but be subtle: If you are bringing customers to your home, you need to have signage so they know they’re in the right place. However, check with your city and HOA rules, and regardless, be tasteful in your choice of signage.

Your home office should be where you can concentrate on work. (Source: Pixabay)

Want to learn more? Check out our article on how to start a small business .

Frequently Asked Questions (FAQs)

These are some of the most common questions about starting a business from home.

How can I start my own home business with no money?

There are a couple of different options to start a business if you have no money. Offer services that don’t cost you anything: What skills, software, or tools do you already have? If you have a full set of tools, a handyman business is low-cost. If you already own a computer and have good coding skills, then perhaps website design is for you. Otherwise, scroll up for our list of suggestions to get funding for your business.

What are the most successful home businesses?

Service-based businesses tend to be the most profitable. Here are some examples of the most popular:

• Cleaning businesses
• Personal trainers
• Mobile apps (especially for children)
• Newborn and post-pregnancy services
• Virtual assistants
• Doggy daycare

What are the requirements to start a small business at home?

These depend on the type of business and its location (city, state). You can start a home-based business without any limitations. However, we recommend all businesses file as a legal entity with the state in which they will be operating. This protects the business owner’s personal assets if a lawsuit were to occur against the business.

In addition to registering the business as a legal entity, your state may require a certain license, for example, a cosmetology license if you’re styling hair in your home. Additionally, if you’re seeing customers in your home, you may need an at-home business license issued by your city.

How many people can work in a home-based business?

This may vary by location. In Los Angeles, for example, you can only have one employee who does not live in the home.

Working for yourself can be exciting and relaxing, but unless you know how to start a home business, you can be in for a world of frustration. The 10 steps we provide give you a good foundation, but do your homework! The more care you put into the first steps, the easier it will be for your new business to take off and grow.

About the Author

Karina Fabian

Karina Fabian has more than seven years of experience writing on business topics and reviewing software. Before writing for Fit Small Business, she reviewed business software and services for other online websites. Karina has also worked as a marketing content specialist for Naviga. After her husband started a rocket company, Karina got a crash course on the ins and outs of starting a business and all the work that goes into launching a startup. In her free time, she writes science fiction and fantasy.

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• Building Your Business
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• Business Plans

How to Write a Business Plan for Your Home Business

If you fail to plan, you plan to fail. Don't handicap your home business by not taking the steps to create a business plan.

Business Plan

A business plan is a written blueprint for your home business. Business plans are essential for getting a business loan, but even if you don't need outside funding, they are a valuable tool to helping you set goals in your home business, understand what you need to do, and anticipate future growth. 

Types of Business Plans

• Formal business plans : These plans are detailed documents, usually prepared for the primary purpose of securing outside funding for the business.
• Informal business plans : These plans are used primarily by the business owner as a road map to success. It might be so informal as to be handwritten notes, or a bit more comprehensive typed out plan.

Whether formal or informal, when properly written and maintained, business plans provide a means to help you stay focused on the tasks that build a profitable home business.

Do you need a business plan?

If you intend to secure outside funding for your business, you'll need a formal business plan. 

However, even if you're starting small or have your own resources to fund your business, a business plan isn't required, but it can greatly improve the chances that your home business will succeed. 

The U.S. Bureau of Labor Statistics estimates that as many as 30% of all small businesses fail in the first two years. Those statistics can be very frightening. After all, why would you want to spend time and effort, as well as risk your own money, when there is only one chance in ten your business will survive?

There are several reasons why small and home businesses fail, but proper planning can help overcome them all. A business plan can help you:

• Get clear on your goals 
• Develop a deep understanding of your market
• Organize the day-to-day activities of your home business
• Understand your current financial situation
• Make important management and financial decisions about your home business
• Set a starting point to measure growth

Writing a Business Plan

The answer to this question depends on two key factors.

Is the Business Plan for Internal Use or External Use?

If you're not using the business plan to get a loan or find investors, you can write it yourself. If you're trying to secure outside funding, professionals who write business plans for a living bring a lot to the table even if you only get outside help to review the plan to make sure your bases are properly covered in the document. Additionally, business plans need to be edited and proofread for grammar and good sentence structure. Well-written business plans increase the chances of securing needed outside funding.

How Are Your Writing Skills?

If you're a good writer you can probably write a business plan yourself, at least with some assistance. Software and samples are available to help prepare business plans. Additionally, the SBA is a terrific resource for guiding you through the process. If you haven't already, you'll want to take their online Develop a Business Plan Workshop to get started. While you can easily learn how to write a business plan yourself, you will still benefit from having someone else read through your plan and you may still need outside assistance, such as a CPA to create your financial documents and/or a market research firm to develop statistics about your markets.

Whether you decide to hire someone who writes business plans, write it yourself, or use software, you still need to take an active role in the process. Whoever writes your plan needs accurate information for each section of the document and a clear understanding of your business.

Gathering the information is also of great benefit to you because it helps you understand your business and what you need to do in order to succeed, and it gives you a clearer picture of your competitors and your market.

If the business plan's purpose is primarily for your own use you can follow a  simple home business plan  outline.While general guidelines are available, if the plan is being written primarily to secure outside funding, such as a small business loan, it's not a bad idea to see in advance if the financial institution has any specific requirements it likes to see in its loan applications and business plans. The basic outline of the business plan includes:

• Executive Summary – A high-level overview of the document that is placed first in the finished document but that needs to be written last.
• Company Description - A history and description of your company.
• Products or Services - Information on the products or services you plan to offer and how they compare to your competitors products or services.
• Market Analysis – A description of your market, your niche, and the demand for your product or service (supported by documentation). The percentage of market share you envision and conclusions of any marketing research data.
• Marketing and Sales Strategies – How you will promote your business, how you will get your product or service to your customers, the costs for distribution and promotion, and how you will measure the effectiveness of the methods you plan to use.
• Organization and Management – The legal structure of your business ( sole proprietorship , LLC , C corporation , S corporation , etc.), who your key players are, who is responsible for what and how much they will cost your business.
• Financial Data – Your balance sheet , a breakeven analysis, an income statement and a statement of cash flows . You'll want to include both historical financial statements and forward-looking financial statements.
• Funding Request – This is the section when you'll be requesting funding for the business. If you are not seeking outside funds right now, you can leave this section out.
• Appendix – Contains supporting information, such as resumes, details of market research findings, estimates, and all other documentation required to support what's contained in the body of the business plan.

What to do with the business plan once it's done?

Once you've completed the above information, you need to use your business plan as you organize you daily to-dos and make decisions about your business. Note that your business plan isn't a static document carved in stone. As you build your business, you may find that you need to make adjustments or changes depending on the market, your ability to reach your goals, and changing trends in the marketplace. As a result, it doesn't hurt to review and revise, if necessary, your business plan every six months or so.

Keeping your business plan current offers some important benefits, such as:

• If you ever need to apply for additional funding through either SBA loan programs or other sources of private funding, up-to-date information will already be available. When it comes time to submitting updated business plans, you'll save time and money.
• It helps you stay focused the important elements of your business, and avoid getting bogged down in busy work, or shiny objects. 

It can help you identify areas you need to improve in or can expand.

U.S. Bureau of Labor Statistics. " Table 7. Survival of private sector establishments by opening year ." Accessed April 16, 2021.

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How to start a small business at home in 2024

Blair Travers

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Published 8:07 a.m. UTC Feb. 16, 2024

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PeopleImages, Getty Images

Starting a small business at home can help you turn your passions, skills or ideas into financial prosperity. There are some unique perks and challenges to consider when deciding to start a home-based business. 

You’ll also want to have a solid plan and follow some key steps to get your business off on the right foot. It’s helpful to know where you can find ideas, answers to your questions and other resources you need to run an at-home business successfully.

Should you start a business at home?

There are many factors to consider when deciding to start a small business at home. On the one hand, it’s important to make sure there is demand for your business. On the other hand, you want to be able to handle the amount of business you receive. Gauging things like demand, profit margins and the ability to scale your business early on can help you avoid trouble down the road.

Across the country, at-home businesses make up a large portion of small businesses. C.E. “Tee” Rowe is the president and CEO of America’s Small Business Development Centers (SBDC), which provides free or low-cost support for small businesses in partnership with the U.S. Small Business Administration. “Here at America’s SBDC, we have seen an uptick in home-based businesses that started during the pandemic but continues to date,” said Rowe. 

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How to get the bonus

To get the bonus, your business must:

• Open a new Chase Business Complete Checking account, deposit at least $2,000 of new money into the new checking account within 30 days of enrolling, maintain a balance of at least $2,000 in the account for 60 days from the offer enrollment and complete at least five qualifying transactions within 90 days of offer enrollment. Qualifying transactions include debit card purchases, accepting card payments through QuickAccept®, Chase QuickDeposit, ACH credits, credit and debit wires and Chase Online℠ Bill Pay.

After you complete these steps, Chase will deposit the bonus cash into your new account within 15 days.

Pros of a home business

Here are some key benefits to starting a business at home:

• Increased flexibility: Set your own hours, freeing you up for other commitments as needed.
• Less commuting: Save time and money by skipping the drive to work.
• Comfortable work environment: Design your workspace how you want it. After all, it is your home.
• Money-saving perks: Pay lower startup costs compared to larger businesses by avoiding costs like renting retail or office space. Take advantage of tax breaks for at-home businesses.
• Reduce risk: Protect yourself by limiting your liability and avoiding the cost and risk of maintaining commercial space.
• Rewards for your hard work: Work hard for your business, and your business reaps the benefits instead of some other employer.

Cons of a home business

These are some of the disadvantages of starting a business at home:

• Limited space: You give up part of your home, and even then, you may still need more space for your business.
• Distracting work environment: Crying babies, barking dogs and loud neighbors can all be distracting when running a business at home.
• Professional boundaries: Some people may feel awkward about meeting to discuss business at your home or a public location.
• Increased mental health risks: Running a home business can feel isolating for some. A lack of social interaction, time outside, work-life balance or effective time management can also threaten mental health.
• Growth restrictive: If your home-based business scales too rapidly, you may outgrow your workspace quickly. In this situation, success creates a problem for home businesses to solve.
• Increased costs: Whether you’re paying new employee salaries or wages or forking over more money for higher utility bills, you may feel the financial squeeze.

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7 steps to start a home business

After considering the pros and cons, does the idea of taking the reins and starting a home business appeal to you? You’re not alone. 

“When we work with individuals seeking to start a home-based business, it is frequently based on a desire to control their own circumstance and success, which are great reasons, but it always needs to be thought out carefully,” Rowe explained.

Planning is key. From creating a business plan and determining your business structure to securing funding and setting your marketing strategy, there’s a lot to think through. Follow the steps below to get on the right track to starting a small business at home.

1. Find your niche

Plenty of successful at-home businesses arise from emotion: a passion to do what you love, a frustration with the status quo or excitement to seize on a timely opportunity.

If you’re struggling to find your niche, ask yourself:

• What do you love to do that others may find challenging?
• What is a need that no business currently has the right solution for?
• What are you good at? What do people ask for your help with?
• What high-demand skills or services do you have to offer?

2. Draft a business plan

Having a business plan is essential for running your business effectively. As Rowe pointed out, “Every business needs a solid, comprehensive plan to guide them to success. That plan needs to focus on skills, finance, revenue and marketing.”

A business plan outlines the direction of the business — its goals, strategies, structure, ways of measuring success and plans for dealing with things like change and risk. Simply put, it’s the roadmap to success for your business.

When creating your business plan, include key sections such as an executive summary, a business description, market analysis and financial projections. For more on what to cover, check out this step-by-step guide to drafting a business plan .

3. Select a business structure

According to the IRS, the most common business structures are sole proprietorships, partnerships , corporations and limited liability companies (LLC) . Each business structure comes with its own set of operational, legal, financial and tax considerations. 

A sole proprietorship is a business owned and operated by a single individual, while a partnership is jointly owned by two or more individuals who share responsibilities. 

In contrast, corporations — like C corporations and S corporations — are independent legal entities. C corporations limit shareholder liability but are highly complex. S corporations feature pass-through taxation, distributing income (and losses) to shareholders.

While sole proprietorship is a common structure for just starting out, LLC is another popular option for at-home businesses. It combines elements of a corporation and a partnership, offering limited liability to its members and the flexibility of pass-through taxation. Members of an LLC can choose to be taxed as a sole proprietorship, partnership, C corporation or S corporation.

4. Register your business and get an EIN

After you choose a business structure, you’ll need to register your business with state and federal governments. Select a business name , pay fees and provide required documents, which vary by state.

After getting registered with your state, you can then apply for an Employer Identification Number (EIN) from the IRS. Once you’re approved, you’ll receive this unique nine-digit number that is essential for all sorts of business purposes, from filing your taxes to hiring employees. 

Not all businesses need an EIN, such as sole proprietors and single-member LLCs with no employees.

5. Get any required licenses and permits

Depending on your industry and federal, state and local requirements, you may also need to obtain licenses and permits for your business. 

Here are some examples of licenses and permits you may need, depending on your business:

• Occupational, professional or trade licenses.
• Online business permits.
• Sales tax permits.
• Health department permits.
• Safety permits.
• Home-based child care licenses.
• Zoning, signage, environmental and other permits to operate an at-home business, as required by local government, HOA or deed restrictions.

6. Obtain funding for your business

Many owners fund their businesses using their own savings. Self-funding is a viable choice if you can get up and running without much money, can come up with the needed funding from your own accounts or can ask for help from family or friends. 

You can also apply for a business loan . Banks will likely want to see a rock-solid business plan, strong financial projections, good personal and/or business credit history and any collateral you’ll use for your loan. If you are a good candidate for lending, make sure that shows in your application so that you can get the best funding and terms for your business.

If you don’t have much personal or business credit history, it may be easier to get a business credit card . This gives you benefits like payment flexibility, credit card rewards and essential early or emergency spending power. It will also help your business establish or strengthen its credit so you can get favorable terms on future loans and other credit.

7. Launch and market your business

You’ve planned out your business, defined its structure and gotten your business registered, licensed, permitted and even paid for. Now it’s showtime. For many who seek to start a small business at home, the launch is the most exciting part of the journey. You are now ready to conduct business.

It’s also important to get others excited about your small business — and keep them engaged. Here are some of the most common marketing strategies for small home-based businesses:

• Social media marketing: Reach potential customers on platforms like Facebook, Instagram, TikTok and X (formerly Twitter) by sharing engaging content and updates.
• Business website: More than just a place to sell your products or services online, your business website should help users find what they want to meet their needs. It should also help achieve business objectives by offering features like payment services or e-commerce functionality .
• Advertising: Platforms such as search engines and social media can help you reach your target audience.
• Content marketing: Write blog posts, produce videos or create helpful graphics to explain what your business offers and to establish trust and authority.
• Email marketing: To keep business coming back, build an email list to communicate using promotions, newsletters and updates.
• Word of mouth: In the early stages, many small home-based businesses rely on word of mouth. You can also ask for customer reviews on platforms like Google and Yelp.

Weigh the costs and benefits when deciding on your marketing plan, so you choose what’s best for your business.

Top home business ideas

Check out these home business ideas to find the right fit for you:

• Retail: Sell products you make — including crafts and customized gifts — or resell products you get for less than what you pay for them.
• Case-based services: Open up an in-home daycare, provide home-based care for adults or even take care of pets by offering pet sitting and mobile grooming.
• Events: Plan weddings and events. Create the perfect look as a makeup artist or stylist. Play music in a band or take your place on the 1s and 2s as a DJ.
• Art and creative services: Capture the moment as a photographer, or maybe you’d rather bring your vision to life as an artist. More of a words person? Write, edit or translate content. 
• Education: Teach the next generation how to do math, play an instrument or learn a new language. Provide adults with specialized training in arts and crafts, life coaching or test preparation.
• Health and wellness: Become a personal trainer to get people in the best shape of their lives or a mental health counselor to help them find their inner peace.
• Home and real estate: Transform homes by organizing, decorating or even staging. Produce virtual home tours for real estate agents, or become a realtor yourself.

Resources to start a business

For more resources and guidance on how to start a small business at home, check out these guides and articles:

• Follow our step-by-step guide on how to start a business from the ground up.
• Learn how to start an LLC if that’s your chosen business structure.
• Discover how to start a business with no money so funding doesn’t hold you back.
• Skip the overhead that comes with brick-and-mortar stores and find out how to start an online business .
• Explore options to accept payments online and start making money in your sleep.
• Find the cheapest payroll services to pay your employees and contractors.
• Build a successful business by attracting loyal, repeat customers. 

Frequently asked questions (FAQs)

The cost of starting a business at home varies widely and depends on several factors. Some businesses, including sole proprietorships, can get away with paying little to no money to start their business. Other home-based businesses, including those with manufacturing or inventory expenses, could have considerably higher startup costs.

Yes, you can use your home address to register a business. However, you’ll want to make sure that usage does not go against local laws, HOA bylaws or property covenants. It’s also a good idea to check with your mortgage and homeowners insurance companies to make sure that running a business out of your home does not introduce unforeseen headaches.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Blair Travers is a business writer and content strategist with over a decade of experience breaking down complex problems to help businesses move forward with confidence. He brings a wide range of technology, banking and retail expertise. Blair enjoys helping businesses figure out complex processes and make choices that are right for them. His work has been published in U.S. News & World Report and Carfax.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

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10 Profitable Home Business Ideas to Make Money From Home (2024)

Looking for work-from-home business ideas? Good idea.

Renting commercial real estate, warehousing, or office space can put massive financial strain on a new business. In contrast, many home business opportunities are quick and easy to start.

But there are so many home-based business ideas out there — which one should you consider?

Some work-from-home business ideas require an upfront investment to get the ball rolling — and some require just $39. Also, some home-based businesses are easier to start if you can turn a spare bedroom into an office or workshop — others are easy to run from your dining table.

So, what's the best work-from-home business idea for you? In this article, we'll explore 10 of the best home business ideas that you can start quickly and easily.

(Disclosure: This website is a part of Shopify inc. media properties. Although we strive to publish objective, accurate, and factual content, this article may contain biased opinions.)

Start selling online now with Shopify

10 Profitable Home Business Ideas You Can Start Today

While there are countless ways to start a home-based business, here are 10 of the most approachable home business ideas to consider:

• Sell handmade products
• Purchase products in bulk and sell them online
• Start a dropshipping business
• Start a print-on-demand business
• Purchase an existing ecommerce business
• Start a subscription box business
• Teach online classes
• Start a service-based business
• Sell digital products online
• Build an online following that you can monetize

1. Sell Handmade Products

Do you love to create things at home? If you love crafts or art, why not sell your handcrafted products online? For example, you could:

→ Click Here to Launch Your Online Business with Shopify

• Make candles
• Create jewelry
• Create pieces of art
• Make homemade food
• Design and sew clothing
• Knit clothes and blankets
• Craft wooden furniture

Whatever you like to create, selling handmade products is a great way to turn a passion into a work-from-home business opportunity.

There are two main ways to start selling handmade products online:

• Sell through a marketplace such as Etsy
• Create your own online store using a platform like Shopify

That said, you could also sell via both channels with Shopify's Etsy integration .

If this home business idea has caught your eye, start by writing a list of everything you could create. Then, do some online research to see what other people are selling.

2. Start a Dropshipping Business From Home

If you like the idea of running an online store, but you're not sure what to sell, consider starting a dropshipping business from home. Plus, this is a home business idea with low startup costs.

Dropshipping is a type of ecommerce in which sellers don't need to purchase or store the products they sell. Instead, sellers partner with dropshipping suppliers who manage the inventory and ship products directly to customers on the seller's behalf.

Check out the image below to see the dropshipping business model in action:

Pretty cool, right?

The best part is that starting a dropshipping business from home is as easy as 1-2-3 thanks to dropshipping apps like DSers .

Here's why: You can use DSers to start selling dropshipped products online today — just sign up for Shopify , install the Dsers app , and search for products to add to your store.

3. Start a Print-on-Demand Business From Home

Similarly, if you like to create art and eye-catching designs but don't want to make products yourself, you could start a print-on-demand business from home.

Print-on-demand is a type of dropshipping in which you can sell products that are customized with your designs, such as:

• Apparel: T-shirts, hoodies, leggings, yoga pants, etc.
• Footwear: Sneakers, boots, flip flops, etc.
• Accessories: Jewelry, watches, phone covers, bags, bottles, face masks, notebooks, stationery, etc.
• Homeware: Mugs, towels, bedsheets, cushions, blankets, throws, etc.
• Art: posters, wall hangings, stickers, magnets, etc.
• Electronics: Headphones, speakers, etc.

Check out some common print-on-demand products in the image below from Printful :

To start this work-from-home business idea, sign up for a Shopify account and choose a print-on-demand app to install , such as:

4. Purchase Products in Bulk and Sell Them Online

Another way to sell products online is to buy products in bulk — also known as 'wholesale' — and sell them individually. 

When you purchase products in bulk, you can get a lower cost-per-unit than if you buy them individually. Then, when selling the products one-by-one, you're able to increase the prices to create a profit margin.

So, where can you buy fantastic goods in bulk?

Start by researching products on business-to-business (B2B) ecommerce marketplaces like Alibaba and DHgate.com .

You can then create an online store with Shopify to sell your products to consumers.

Plus, instead of selling products individually to consumers, you could also purchase products in bulk and sell them to retailers in smaller quantities — this is called wholesaling.

5. Purchase An Existing Ecommerce Business

If you don't have the time — or the inclination — to set up a home-based business from scratch, you could always buy an existing home business opportunity via the Exchange marketplace .

This website facilitates the sale of ecommerce businesses in a range of niches. Plus, you can buy an established business or a relatively new business.

This may sound pretty complicated at first, but in practice, it's pretty straightforward.

Start by browsing the home business opportunities listed on Exchange. When you find a business you like, consider reaching out to the buyer to find out more information. Then, if you decide to purchase the business, Exchange will facilitate the… well, exchange.

On the other hand, if you want to start businesses but you're not interested in growing them to their full potential, you could create and sell ecommerce businesses on Exchange. 

It's also possible to 'flip' businesses — or to put it another way, buy a business, improve it, and then sell it for a profit.

6. Start a Subscription Box Business From Home

Why sell one product at a time when you can sell a bundle of products every month to the same person? This is what subscription box businesses like Birchbox do. 

Plus, Google Trends shows how interest in subscription boxes has boomed in recent years:

This home business idea is a fantastic way to grow a sustainable income, thanks to the recurring revenue generated by ongoing purchases.

You can sell almost anything as a subscription box, too, such as:

• Fashion accessories
• Indie records
• Homeware and kitchen gadgets
• Information products (such as up-to-date industry reports)
• Food, such as snacks or sauces

What's more, you don't necessarily have to sell products — you could also rent them. For example, Haverdash rents clothes.

To get started with this home business idea, sign up for Shopify and use the built-in subscription management tools. 

7. Teach Online

If you have in-demand skills or knowledge and a talent for teaching, consider sharing your knowledge via online video calls

Popular subjects taught online include languages, maths, science, and business. But there are no limits to what you can teach, so you could also teach things like music, sewing, or even DIY!

According to PayScale , most online teachers earn between $10.18 and $39.87 per hour, depending on their level of experience.

There are countless online teaching marketplaces that will help you to connect with students and manage your classes, such as:

Plus, there are plenty of feature-rich online teaching platforms to help you create incredible virtual learning experiences, such as:

8. Start a Service-Based Business From Home

The need for digital services is rampant — from designers and developers to digital marketers and doodlers, there's a need for virtually every talent.

If you're wondering what service you can offer, here are 20 service-based home business opportunities to consider:

• Graphic designer
• Web designer
• Transcriber
• Marketing writer
• Resume writer
• Photo or video editor
• Social media manager
• Digital advertising manager
• Data entry clerk
• Virtual assistant
• Career coach
• Marketing consultant
• Management consultant
• Finance consultant
• Calligrapher

Some of these home business ideas offer more income potential than others. So, make sure to do your research to choose the right service-based home business idea for you.

To get started, consider signing up to a freelance marketplace like People Per Hour , Upwork , or Fiverr .

You could also create a website and then find clients independently by networking and pitching.

9. Sell Digital Products Online

If you've mastered a particular skill or subject and don't want to teach online or provide a service, you could package your knowledge and experience in a digital product.

Selling digital products is a fantastic home business idea because — like dropshipping — there's no need to source or manage inventory or ship products to customers. Plus, once you've created a digital product, it doesn't cost anything to replicate.

So, what types of digital products can you sell? Here are 20 to consider:

• Written templates (résumés, scripts, marketing emails, etc.)
• Spreadsheets
• Illustrations
• Graphic templates
• Editing presets (for videos, images, or audio)
• Online tools
• Membership sites
• Audio (music, samples, podcasts, etc.)
• Research (statistics, reports, etc.)

For example, Gabriella and Andrew Morrison sell courses and house plans to help people build tiny houses on their website Tiny House Build .

10. Build An Online Following That You Can Monetize

If you love creating content, you could build an online following around a particular topic or niche and monetize your audience.

If you're interested in this home business idea, you need to choose a way to build an audience. Now, there are many ways to create a following online — for example, you could:

• Grow an Instagram following
• Build a YouTube audience
• Create a blog and grow your readership
• Grow a Twitch following
• Build a TikTok following

Once you have a relatively large following or plenty of website traffic, how can you make money? In essence, there are three ways to monetize an online audience:

• Brand sponsorships: Get paid to promote a company's products (also known as ' influencer marketing .'
• Affiliate marketing: Promote a company's products or services and earn a commission.
• Sell products: Create and sell physical or digital products to your audience.

For example, Adam Enfroy built a blog that reviews many software products. In the image below, you can see his blog post reviewing the Shopify platform:

This blog post contains Adam's affiliate link to Shopify . As a result, whenever someone reads the post, clicks the affiliate link, and signs up for Shopify, Adam will receive a small sales commission.

FAQs About Home Business Ideas

• How do I start a small home business?

Wondering how to start a small home business? Here are 8 steps to starting an online business:

• Choose an online business model that suits your business
• Identify your target market
• Identify the problem that your business is solving
• Know your competitors and how you are different from them
• Choose a sourcing strategy that your customers will love
• Set up your payment system so you can get paid 
• Test your business idea in the simplest way possible
• Create your marketing strategy to start promoting your business
• How do I make money from home business ideas?

There are many ways that online home business ideas make money. You could charge per product, create subscriptions, build affiliate links, and so much more. Once you have decided your business model you can start brainstorming the exact home business idea for you and get started.

Choose A Home-Based Business Idea and Get Started Today 

There are tons of profitable home business ideas out there to choose from. So, if you're wondering, "What business can I start from home?" Here are 10 of the best home-based businesses to consider:

• Sell products you make at home online
• Start dropshipping products with Dsers
• Sell print-on-demand products
• Buy products in bulk and sell them online
• Purchase an existing business on Exchange
• Sell subscription boxes
• Teach online
• Sell digital products
• Build and monetize an online following

When deciding which home business opportunity to pursue, try to capitalize on any skills and experience you have — and consider following your interests or passions.

Which home business idea has caught your eye? Let us know in the comments below!

Want to Learn More?

• How to Use Shopify: A Quick and Easy Shopify Tutorial for Beginners
• What is Dropshipping: Things You Need To Know Before Getting Started
• Shopify Pricing Plans: Which Shopify Plan is Best For Me?
• Do You Have an Entrepreneurial Spirit? Find Out Here (With Quotes)

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How to start a business from home

Learn about different ways of starting a home business, with a step-by-step guide to make your home business a reality.

What kind of business can you start doing at home?

Past research has shown over two-thirds of new business start off in the home. Whether you’re looking for a side hustle, a full-time job or to become an entrepreneur, there is a home business idea for you.

Popular businesses to run from home include creative fields (copywriting, content writing, graphic design), IT (web design, developing apps) and ecommerce (handmade products, drop shipping , selling products on marketplaces such as Etsy).

A home-based business is any business where your own home is the principal place of business.

You may need to check the laws in your location for starting a home business, as some places control this via zoning regulations. If you’ll have business visitors in your home, you may also want to familiarise yourself with laws about safety and liability insurance.

How to start your own business from home: a step-by-step guide

• Develop your business idea
• Write a business plan
• Create a financial plan
• Decide on a name, business entity and legal structure
• Set up the business licence and bank account
• Set up your home office
• Set up small business accounting
• Create a marketing plan

1. Develop your business idea

The first step is to determine what type of business you want to start. If you don’t have any obvious ideas, try the following:

Choose a home business idea that fits your talents and skills

Do you have years of experience or qualifications to use to your advantage? Do you have a special talent? For example, if you are good at baking, you might consider a home baking business, or you might be specifically interested in making homemade cookies.

Find ideas you are passionate about

Does the business idea excite you? If you are wildly excited about your business, you’ll have more energy and focus.

Make sure your idea is viable and that you can make money from it

Not every talent or skill can become a successful business idea. You’ll need to make a plan to turn your idea into revenue. You can begin by researching the market – and your potential competition.

Consider if you can run your idea from home

You'll need to think about zoning laws. For example, if you want to run a catering business, you may not be allowed to, but you may be able to run a home baking business. Home bakeries are cottage industries and are permitted to make low-risk foods; catering businesses can produce high-risk foods and require more regulation and facilities that may not be allowed in a residential area.

When you’re brainstorming ideas, don’t discard anything. Your ideas are allowed to be wild or simple.

Once you’re satisfied that you can pour your energy and skill into it and make a financial return from it, you’re ready for the next step.

2. Write a business plan

Small business experts like accountants and bookkeepers say it really helps to have a plan. Even if it’s a really short one.

Your plan will describe your product or service, identify who will buy it and why, and explain how those purchases will filter down into profits for you.

Start with a one-pager

Begin with a simple one-page business plan. Keeping it short will help you focus on what’s important – plus it'll help make sure you actually finish the plan.

Besides answering big questions about your product and how it fits into the market, a plan will also cover practical things like funding needed, sales goals, marketing plans, and who your team will be.

Download a one-page business plan template .

3. Create a financial plan

A financial plan will help you understand how your business will make money. Hint: it probably won’t be profitable straight away so definitely budget for a lean beginning.

Your budget will estimate costs and income to help you understand when the business might become profitable. It'll also help you see if you need to borrow some cash to make things happen.

Learn about small business budgeting .

You’ll need to strike a balance between affordability for the customer and profitability for you.

Get the scoop on common pricing strategies .

How will you pay for everything? Do you need a loan (or investment) to start up your business?

Find out how small business finance really works .

How to pay yourself

Work out what you can afford to pay yourself. And learn how to do it without getting a surprise tax bill. Quick reality check: most small business owners only take modest pay to begin with.

Figure out how to pay yourself.

4. Decide on a name, business entity and legal structure

After you’ve written your business plan, you will want to name your business. That’s if you’re not going to operate under your own legal name. When deciding, it’s a good idea to make it memorable and something that makes it clear what you do.

Check that your chosen name is available. Start with a simple Google search to see if the name is taken. And also check the intellectual property office .

There are several different ways to make your business name official:

• Trading name: This allows you to trade with a name other than your own. This doesn’t give you legal protection, but can help distinguish different areas of your business if you want to sell certain products or services under a separate name.
• Trade mark: This protects your business name, goods and services at the national level.
• Domain name: This protects your business web address.

You'll also need to choose a suitable business structure. This can affect how you’re taxed and how much you’re personally liable for the business.

There are four main types of structure to consider:

• Sole trader
• Partnership
• Limited liability partnership
• Limited company

The government will automatically assume you’re a sole trader unless you choose to be something else. To choose the correct entity for your business, consult with an accountant.

Related articles : Types of business structure explained and Registering a business

5. Set up the business licence and bank account

You’ll need a UTR number from HMRC. This is a tax number that will identify your business with HMRC. Depending on your business status, you might have a UTR number as an individual, as well as a separate UTR number for your business entity. You may also have to apply for VAT registration with HMRC .

After you have completed your business and tax registrations, you may need to apply for a business licence depending on your industry. These are generally issued by local authorities. Some common licences include:

• Home occupation licence: If you’re planning to get lots of customers or deliveries or advertise outside your home you may need to get permission with your local council.
• Alcohol licences: You’ll need to check what local licences apply to you if you’re planning to sell or supply alcohol. It’s likely you’ll require a premise based and personal licence.
• Food business registration: If you’re planning to prepare and sell food you’ll have to register for this licence for each of your outlets, with the corresponding local authority.

It’s a good idea to review your home-based business insurance needs. Typical insurance includes home coverage, public and professional liability, key person and shareholder.

Related article: Registering a business and VAT guide for business

6. Set up your home office

Designate a specific area or room that will be your home workspace. Consider if you need any extra room for inventory or work tools.

Try to keep your workspace as distraction-free and roomy as possible. Being stuck in a noisy spot or a cramped corner will diminish your productivity.

Once you have your space, invest in suitable furniture, tools and technology. You may not be able to afford everything you’d like all at once, so rank things in order of priority.

Related article: Practical tips for a mobile office

7. Set up small business accounting

Once all your registrations, licences and permits are arranged, you should open a dedicated business bank account. This is crucial for bookkeeping and tax filing because it prevents confusion between your personal and business finances.

Record receipts for all your business purchases as you may be able to deduct them from your taxes. Also keep records of all your sales. List all of these incomings and outgoings together in one place so you can see how the business is doing.

Get a tax advisor onboard as soon as you can. They will help you claim all the deductions you’re entitled to and submit an accurate return. Plus they’ll do things like estimate your tax bills so there aren’t any nasty surprises.

Related article: An intro to small business accounting

8. Create a marketing plan

Writing a marketing plan can help you define your marketing strategy and identify the best channels to market your products or services.

To create your marketing plan, you should:

Analyse the market

Do a SWOT (strengths, weaknesses, opportunities, threats) analysis to determine where your business fits in the market.

Set your goals and objectives

Make them SMART (specific, measurable, achievable, relevant, time-bound).

Outline your marketing strategies

Choose marketing activities to suit your target audience. For example, will you reach them online ?

Set your marketing budget

Knowing how much you have to spend is critical to the success of any marketing campaign.

Keep your marketing plan up to date

Analyse your campaigns and tweak or change your plan as needed. Track how much business you get in return for each pound spent. When you see something isn’t working, invest your money and energy in other ideas.

Useful marketing tools for home-based businesses include setting up social media accounts and a website.

How to start an online business from home

Starting an online business is easier than ever. They generally cost less to run and are easier to run as a side hustle. Plus, online businesses give you the flexibility to work from anywhere and access to a worldwide market.

Learn the pros, cons and how-to’s in the guide to starting an online business .

Overcoming possible barriers to setting up a home business

All new business owners face barriers. Resilience and planning will help to solve many problems that you'll face. Some common barriers include:

• Lack of financial resources: Be sure you can afford to start a business and meet your regular expenses. Consider taking a loan or partnering with someone if you need to.
• Regulations and red tape: Ensure you obtain the correct permits and licences to run your business from home. Consult with experts to help you understand requirements.
• Interruptions from family and friends: You need to establish boundaries so that your family or friends know not to interrupt you during business hours . You also need to avoid working around the clock just because you happen to live in your office.
• Feeling isolated: You may feel lonely working on your own. Join some professional groups and try working in a shared space or café occasionally.

Resources and tips for running a successful home business

Setting up a home-based business is difficult. The following resources can help you run a successful home business.

• Business plan template – download this free template (with a how-to guide) to help put your idea together.
• Cash flow forecast template – use this free template to track expected costs against your cash reserves to help see if you need a loan.
• Small business trends – check out this stat-packed report on the issues affecting small businesses around the world.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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How to Start a House-Flipping Business: Your Essential Toolkit

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you've tuned into HGTV lately, it won't come as a shock to learn that more people than ever are interested in how to start a house-flipping business. For enterprising investors who aren’t afraid of hard work, flipping a house is an exciting opportunity for short-term investment and for starting a new business. But there’s a lot of research to be done, plus financing and resources you need before you can start a house-flipping business yourself.

So we’re all on the same page here, house flipping is the process of purchasing distressed, foreclosed, or otherwise desirably priced property with the intent to fix it up and sell at a higher price within a short period of time.

»MORE: Read how to fix up that first property you're flipping

If you’re one of those enterprising investors who want in, you’ll need to know more about how to start a house-flipping business. Follow this guide to help you develop a business strategy, plus determine and execute the optimal financing plan.

Starting a house-flipping business in 8 steps

If you’re determined to invest in short-term real estate and flip a house, here’s where to start:

Step 1: Write a business plan

Before taking any action, financial or otherwise, it’s crucial that writing a business plan is the first step in starting your own house-flipping business. A business plan will be key to keeping your business on track, helping you estimate profits, and getting investors.

Your business plan should be fairly in-depth and there is a lot of information you should be sure to include in it. You can either write it on your own or use a business plan template to help you. No matter what you choose, you should be sure to include the key parts of a business plan.

You'll want to start out with an executive summary detailing the purpose of your business, the vision you have for it, some high-level financial projections and identify who will be involved in the business. The rest of the business plan should include a section on the competition and the demand for your business. After all, you need to be sure that there's enough demand to sustain your house-flipping business—a lack of demand for a small business is the reason 42% of small businesses don't make it. That's a group you don't want to be a part of simply because you didn't do your research before starting your business.

You should also use your business plan to lay out what exactly your business will do and how much it will cost, along with how much you expect to make. With house flipping, you'll want to detail how much money you have, how much you expect to need to buy properties and flip them, and then how much you expect to make back.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Grow your network

Flipping houses is tough work, and you'll need a plethora or resources to help you finish each job. Identify the resources already available to you to take full advantage of your strengths. Experience in the real estate business, access to a network of excellent craftspeople, or just a promising property are all assets.

Talk to friends or relatives involved in real estate investment, particularly in the area where you plan to invest in property. Anecdotal evidence and word-of-mouth advice can help you find reputable wholesalers, contractors, and realtors to help you find and complete jobs within budget.

Reach out to your existing professional or personal network to find contacts within the industry, and seek out experts for mentoring and advice. Get active in local real estate investment groups or find your chapter of REIClub to connect with industry professionals.

Step 3: Choose a business entity

In order to operate your house-flipping business legally, you'll need to choose a business entity and register your business with the state in which you plan to operate. While there are many business entity types to choose from, you will want to opt for one with limited liability protection, such as an LLC or corporation.

Liability protection is especially important for a house-flipping business because there are many opportunities for things to go wrong. If someone sues your company over an issue with a property you flipped, you'll want to make sure your personal assets are protected. If you're unsure which entity is right for your business, consult a business attorney to help you weigh your options.

Step 4: Obtain an EIN, insurance, permits, and licenses

Registering your business is the first step to legally establish your operation, but there are a few more steps to take to make sure you're officially allowed to start work as a house flipper. First, you should register for an employer identification number, also known as an EIN. Think of this as a socials security number for your business, which you will use for tax purposes, as well as when applying for business loans or a business bank account or credit card. Applying for an EIN can be done online through the IRS website.

Next, you'll want to look into your business insurance options. If you hire employees, you'll need workers compensation, unemployment, and disability insurance. Beyond those policies, you should also look into general liability and commercial property insurance to protect yourself, your business, and your properties.

Finally, you'll need the proper business licenses and permits to operate your business. The licenses and permits you need will depend on your state and the scope of work you're doing; however, you can expect to need several permits when working in the construction business. Check with your local chamber as commerce and consult with your business attorney to make sure you have all the paperwork you need before you start any work.

Step 5: Find suppliers and contractors

Once your business is legally established, it's time to find contractors and suppliers to help you get your business going. Even if you plan to contribute sweat equity to your house-flipping business, you’ll probably need additional contractors to complete a project successfully. Look for contractors with a portfolio of demonstrable work, references, and positive feedback from previous projects.

A trusted general contractor can also look over any remodeling plans and budget projections you make to check for accuracy with regard to cost and timeliness. Finding suppliers who are reliable and can work within your budget is also incredibly important. Tap into your network and do your research to find some reputable options.

Step 6: Assemble a team

Whether you plan on bringing in a partner, hiring outside contractors, or renovating each property yourself, you’ll need to recruit a team of qualified people to complete a successful flip. In particular, consider sourcing for these roles, which could really help you keep things organized and get the most out of your investment:

Business partners or investors

A good potential partner might be an active private investor in your personal network or a real estate investor looking for a project manager. A good business partner brings an asset or skill to the relationship—be it capital resources, skilled labor, industry expertise, or simply a great work ethic and determination to make an honest profit.

According to Jamell Givens, a partner and real estate investor at Leave the Key Homebuyers, the advantage of having a business partner is the ability to evaluate a deal in different ways. Whereas one partner might think only of a home's profit potential, the other might bring local knowledge or connections with contractors.

Realtors or property owners

A background in real estate and property ownership is a huge plus in the house-flipping business. An experienced partner can help you search efficiently for prospective properties, identify the most valuable improvements for a given area, and navigate contracts and sales once the rehabilitation is complete.

Or, if you know a homeowner looking to sell and willing to loan you the money for necessary repairs and renovations, owner or seller financing may work for you.

Legal counsel

Seeking legal advice about any financial agreement or contractual obligation is a good idea, especially when you’re considering making major investments and buying property.

Step 7: Obtain financing

You’ve found a partner, done your research, and maybe even identified the first property you want to flip. In other words, you’re ready to finance your house-flipping business’s first fix-and-flip.

If this is the beginning of your house-flipping career, you’re probably not going to be eligible for a traditional bank loan. Typically, banks only approve businesses with many years of profitability under their belts. And in house-flipping, time is money. That makes the best fix-and-flip loans short-term financing option—usually around 12 months. Repayment terms on bank loans, on the other hand, can run between five and seven years.

That said, you do have a wide variety of fix-and-flip loans available to you. As a brand-new business, you also have a good option to tap into your personal funds or investments. It’s a little risky to throw your own skin in the game—in other words, your nest egg—but it’s likely that your business doesn’t have the revenue and financial stability that most lenders want to see before extending you a business loan .

As always, it’s wise to explore all of your possible options before settling on a loan that best suits your needs. Start your search with these options for new house-flipping businesses:

Friends and family loan

Many rookie real estate investors fund their first projects with personal loans from partners, friends, or family members. If the loan is comfortably within the lender’s means, this alternative to a bank or private loan can alleviate some of the pressure of a traditional loan, as well as ensure a degree of accountability.

If a friend or family member is an investor or partner in your house-flipping project, it’s a good idea to establish terms of the arrangement in writing as soon as you reach an agreement.

Tap into your 401(k)

For first-time flippers with a retirement plan who are not planning to retire in the near future, one financing possibility is taking out a loan from your 401(k). This option incurs the risk of losing your nest egg, which is always a scary prospect. But financing a business with a 401(k) might be the only viable option for entrepreneurs just starting out—and if you’re smart with starting your house-flipping business, you can hopefully make back the cash and then some.

There are two main options for 401(k) loans: The classic 401(k) loan, in which the IRS allows you to borrow up to half the vested balance, or $50,000, whichever is amount is lower; or a ROBS . You’ll determine which type of financing makes the most sense for you based on the size of your investment and your willingness to dip into your retirement savings.

Combination financing

Many experienced short-term real estate investors find success using multiple financing sources to purchase and renovate a property. Depending on your own capital, a partner or investor, and external lenders, it’s likely that you’ll end up using a combined solution to finance your house flipping business.

Step 8: Source your deal

The success of flipping a home depends in large part on supply and demand in the local real estate market, as well as the cost of labor and value appreciation of the renovations.

Identifying your target property market might help you decide if a real estate wholesaler, auction, or a traditional broker is the right choice for your project. If you’re interested in distressed or foreclosed properties, a wholesale broker or auction will have higher volumes of properties available. A traditional broker might be right for you if the real estate market is new to you or if you need help finding a specific type of property or building.

Determine the scope of renovations or rehabilitation you are equipped to complete on a property, keeping in mind the duration and amount of your fix-and-flip loan.

Start Your Dream Business

Follow these best practices for a successful house-flipping business

Once you develop a business strategy, assemble a team, identify a property, and secure financing, it’s time to start implementing your renovation plans, thinking about marketing and selling the property , and generally getting your house-flipping business underway. Make sure you:

Commit to your business plan. Planning, logistics, and administrative organization will make or break your project—although you have the potential to make a big, quick profit, starting a house-flipping business is no walk in the park. You’ll need to scout properties, calculate renovation costs, source a trustworthy crew, possibly apply for a small business loan… not to mention the curveballs that may arise with every step.

Approaching the process with a detailed business plan in hand will help keep you on track. And the more confident you are in your business strategy and execution plan, the more adaptable you’ll be to those unpredictable circumstances that’ll inevitably arise.

Grow your network. Use your first fix-and-flip project to foster relationships with industry professionals—from investors to realtors to carpenters—whose collaboration and skills you will need for your next house flip. Experienced contractors and agents can connect you with other vendors, give you leads on properties and service-providers, as well as provide advice on specific projects. Trusted contacts in the industry can also help you cover your blind spots, and make sure estimates for properties and repairs are accurate, saving you time and money.

Make estimates—then double them . Unless you’re already in possession of a property, sufficient cash, and experience with home repairs, the process of flipping a home will require timelines and cost estimates at every turn.

Err on the side of caution when making any projections about the cost and duration of the renovation. That’s especially important if you’re financing your startup with outside investors who need to see that you’ve done your due diligence before putting their own capital on the line.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Group Home Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their group home companies.

If you’re unfamiliar with creating a group home business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a group home business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Group Home Business Plan?

A business plan provides a snapshot of your group home business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Group Home

If you’re looking to start a group home business or grow your existing group home company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your group home business to improve your chances of success. Your group home business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Group Home Businesses

With regard to funding, the main sources of funding for a group home business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for group home companies.

Finish Your Business Plan Today!

How to write a business plan for a group home business.

If you want to start a group home business or expand your current group home business, you need a business plan. The guide below details the necessary information for how to write each essential component of your group home business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of group home business you are running and the status. For example, are you a startup, do you have a group home business that you would like to grow, or are you operating a chain of group homes in your business?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the group home industry.
• Discuss the type of group home business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of group home business you are operating.

For example, you might specialize in one of the following types of group home businesses:

• Faith-based Group Home: In this type of group home business, you may specialize in adding spiritual support courses and counsel to the residence group home experience.
• Boutique Group Home: If you are opening a boutique group home, you will want to offer distinctive, personalized services that appeal to your target audience. Offerings may include massage treatments, herbal wraps, nutritional supplements and counseling for the small group of guests in your boutique group home.
• Senior Group Home: This type of group home business is focused on guests who are aged 65 years and older. Guests may attend classes on health and safety for seniors, as well as receive medical treatment and recovery options. Classes are small and residences are typically small in size. On-call medical care may also be offered.
• Teen & Young Adult Group Home: Offering select group homes to teens and young adults offers a marketing advantage, as most teens will opt for this environment. Guests are engaged in physical activities, including dances and outdoor activities, as well as circle therapy groups, medical oversight and rooms that sleep up to four teens or adults.

In addition to explaining the type of group home business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of guests served, the amount of revenue during the past six months, opening a second group home location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the group home industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the group home industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your group home business plan:

• How big is the group home industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your group home business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your group home business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, physicians, hospital placement staff.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of group home business you operate. Clearly, individuals would respond to different marketing promotions than hospital staff, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Group Home Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other group home businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes on-site church programs, welfare housing assistance and drug treatment centers. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of group home business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for group home visitors on a daily or weekly basis?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer value-based pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a group home business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of group home company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a six-month extended stay group home experience?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your group home company. Document where your company is situated and mention how the site will impact your success. For example, is your group home business located in a quiet neighborhood, a rural farming district, or an inner-city boarding house? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your group home marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in regional medical periodicals and/or magazines
• Reach out to physician websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your group home business, including answering calls, planning and stocking group home items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to admit your 100th guest, or when you hope to reach $X in revenue. It could also be when you expect to expand your group home business to a second or third location.

Management Team

To demonstrate your group home business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing group home businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a group home business or successfully running a small motel.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 guests per day, and/or offer group home experiences with amenities? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your group home business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a group home business:

• Cost of medical care, medical supplies, and administrative staff
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your group home location lease or a list of associates who are already lined up to refer guests to your business.

Writing a business plan for your group home business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the group home industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful group home business.

Group Home Business Plan FAQs

What is the easiest way to complete my group home business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your group home business plan.

Where Can I Download a Group Home Business Plan PDF?

You can download the group home business plan pdf here.

Our sample group home business plan pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

How Do You Start a Group Home Business?

Starting a Group Home business is easy with these 14 steps:

• Choose the Name for Your Group Home Business
• Create Your Group Home Business Plan
• Choose the Legal Structure for Your Group Home Business
• Secure Startup Funding for Your Group Home Business (If Needed)
• Secure a Location for Your Business
• Register Your Group Home Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Group Home Business
• Buy or Lease the Right Group Home Business Equipment
• Develop Your Group Home Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Group Home Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Group Home business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

How to Write a Home Health Care Business Plan

Elon Glucklich

8 min. read

Updated February 7, 2024

Free Download:  Sample Home Health Care Business Plan Template

The world’s population is aging. One in six people worldwide will be 60 years old or older by 2030, and the share of the overall population over 60 will double over the next quarter century, according to World Health Organization estimates .

This demographic shift has driven a surge in demand for custom senior and disability care options. So, if you’re an experienced health care worker with an entrepreneurial streak this presents an opportunity to start your own home health care business.

But the home health care industry is complex and layered—with issues ranging from licensing and staffing to liability concerns. Even with your industry-specific experience, you’ll need to write a business plan to navigate these challenges and focus your time on providing the best care possible.

In this guide, we’ll show you how to tailor your business plan to tackle the complexities of the home health care industry. And you can even download our free home health care business plan template to help get you started.

• Why You Need a Business Plan for Your Home Health Care Business

Do you have a service and staffing plan? Do you know which agency or agencies have regulatory authority over your business? How much funding do you need to pay for equipment?

You’ll need to have answers to these questions and more before launching your business. 

That’s why writing a business plan is necessary when starting any sort of health care business. It ensures that you are thinking beyond your expertise as a health care professional and able to easily manage day-to-day operations, insurance and billing snafus, and extensive startup costs.

You can enter this industry with extensive knowledge and the best of intentions. But without a plan in place, you won’t be prepared to run a successful business. 

• How to write a home health care business plan

For this guide, we’ll be highlighting specific areas that you should focus on when creating a home health care business plan. You can check out or full step-by-step walkthrough on how to write a business plan for additional guidance for creating a detailed plan.

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1. Define your vision

What does your business offer that other health care services in the area don’t?

Answering this question is your first step to lay out a roadmap for your business. And it goes beyond just describing the type of home health care business you will open. This is an opportunity to state your core values , long-term goals and the impact you hope to have on the lives of your clients.

Then, discuss what niche it will fill in the market. For instance, will you open your business to fill a need in an area with few health care options? Or will you round out the offerings in a city with a wide range of services? 

Remember to keep this relatively short. This opportunity section can introduce lenders or investors to the unique services you plan to provide, like specialized care offerings, tailored care plans, or uses of advanced medical technology. But you don’t want them to get bored with an overly lengthy statement. 

You can always go into greater detail about your services in the products and services section of your business plan. 

2. Be specific about your service offering

As a home health care business, you will likely provide a variety of services. But will you have a specific focus—such as elder care or post-surgery care? Or will you offer a wider range of general services like medication management?

Additionally, it’s worth stating if your home health care business will be able to manage requests for specialized services based on individual client needs. 

Whatever you choose, the important thing is to make your service offerings clear and to back them up with market and customer data. Make sure you describe why these services are essential and how they will benefit your clients. And remember to make a clear connection between your services and your target market , which we will go over next.

3. Define who your customers are

Not everyone with a medical condition will be interested in home health care services—so it’s essential that you focus on a specific set of people.

A home health care service specializing in senior or disability care will cater to that specific customer base. But a home health care business that provides post-operative or palliative care would likely appeal to an entirely different market. 

To start your research, try and get an estimate of the population of residents aged 65 and older in the area you plan to serve—which can be found from sources like the U.S. Census Bureau . You may also be able to find the approximate number of nursing and elderly care beds in your area from sources like state licensing records. 

This kind of information will give you a broad sense of how many people you could serve in your area. From there, begin to refine your target audience by taking into account competitors, your services, and what you believe you’ll be able to reasonably handle. 

4. Understand pricing and insurance

When pricing your services, it’s helpful to research the prices of other home health care providers in your area. This provides you with a benchmark and allows you to position your business based on the value and/or quality of your services.  

Now, another factor to consider before solidifying prices is insurance expenses for both your business and patient coverage.

From Medicare and Medicaid to private insurers, you’ll want to document all relevant insurance providers in your business plan. Then, research their reimbursement policies and rates for home health care services to better understand your potential revenue sources.

Different insurance plans may also cover varying degrees of home health care services—with some offering comprehensive coverage and others only covering specific treatments or services. Identify the limitations and requirements of each plan, such as the need for prior authorization or a physician’s referral, to ensure your services are eligible for reimbursement.

Then, make sure you understand the reimbursement rates offered by insurance providers for the services your business will offer. These rates will directly affect your revenue and should be factored into your pricing strategy. 

Just keep in mind that these reimbursement rates may change periodically, so it’s essential to stay up-to-date on the latest information.

5. Identify your staffing and licensing needs

Worker shortages are especially prevalent in the health care industry. Without the right number of employees in the necessary roles, you can expect to see fewer customer visits, worse service quality, and potentially increasing employee expenses. This is why you need to have a well-documented personnel plan that takes into account the roles of your employees, how many you’ll need, and forecast potential expenses.

To start this section, carefully consider the services you plan to offer and the number of clients you expect to serve. That will help determine the number of staff members you’ll need and the qualifications necessary for them to do their jobs well. Additionally, be sure to document any training programs and processes your staff members will receive on topics like client care, safety procedures, and documentation.

Home health care businesses also require a variety of licenses and permits. What’s required may vary depending on your location and the services you plan to offer. So, it’s crucial that you understand the specific requirements in your area to avoid any legal issues down the road. And for your own internal management, it may be useful to detail the local, state, and federal regulations and agencies that will be responsible for regulating your business.

You will need to demonstrate knowledge of the operating requirements in your area to receive a license anyway. So take the extra step of detailing the full range of legal and regulatory issues in your business plan. Otherwise, you raise the risk of facing legal consequences, fines, or even the risk of being shut down.

6. Develop a risk management plan

In such a regulation-heavy industry it’s important to think about–and document–internal and external risks. These can be anything from negligence to malpractice claims and even elder abuse. 

Consider conducting a risk assessment that takes into account your location, services offered, and employee qualifications. Once you’ve identified potential risks, outline what you’ll do to minimize or avoid them altogether. For example, you can implement employee training programs to prevent theft or malpractice, or you can invest in insurance to protect your business from liability claims.

By protecting your business from potential risks, you can increase your chances of success and longevity. And you can show lenders, investors, and regulators that you have considered the risks and developed the right strategies if they arise.

7. Marketing and PR

As home health care demand rises competion is bound to rise with it—especially if you plan to operate in an urban area where consumers are more likely to have multiple options. As part of your plan you need to not only take your competitors into account but outline how you will raise awareness and attract customers.

Some strategies to consider include:

• Creating a website or online portfolio that showcases your services and provides potential clients with your contact information.
• Using social media platforms to communicate directly with clients, and keep them informed about your services and any special offers.
• Investing in advertising by targeting your ideal clients through print or digital media.
• Partnering with other businesses, such as senior centers, to expand your reach and offer added value.
• You can also consider hiring a PR consultant, but make sure they have experience with home health care businesses or similar industries.
• Download a free home health care business plan template and example

To help get you started on your home health care business, check out our free home health care business plan template . You can download this document in Word form and use it as a foundation for your own business plan.

In addition to these resources, you may want to brush up on how to write specific sections of a traditional business plan. If so, take a look at our step-by-step guide on how to write a business plan .

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Walmart will lay off hundreds of corporate workers, require others to relocate

The country’s largest retailer and employer mandated that the majority of workers in Dallas, Atlanta and Toronto move to its headquarters in Bentonville, Ark.

Walmart will lay off hundreds of corporate staff and require the majority of employees working remotely or at a handful of off-site offices to relocate, the company announced Tuesday.

Walmart is the largest employer in the country, with 1.6 million workers. The majority of employees work in stores or warehouses. Chief people officer Donna Morris said in an email to staff that the number of associates being laid off is “small in percentage” relative to the size of the company.

The retail giant mandated that the majority of employees in Dallas, Atlanta and Toronto move to its headquarters in Bentonville, Ark. Other staffers will go to locations in the San Francisco Bay Area or the New York metropolitan area. Employees affected by the news have already been notified, the company said.

“We believe that being together, in person, makes us better and helps us to collaborate, innovate and move even faster,” Morris said in the email. “We also believe it helps strengthen our culture as well as grow and develop our associates.”

Walmart has been investing in enhancing its in-person office experience, particularly at its headquarters known as Home Office. The company began new construction on a 350-acre campus in 2019 and aims to open in phases through 2025. The new campus has a child care center, hotel, 360,000-square-foot health and fitness center, food hall, 37-mile walking and biking trail, and auditorium.

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The company, which reports its first-quarter earnings on Thursday, has been cutting costs recently. Last month, it announced it was shuttering Walmart Health, an initiative started in 2019 that offered in-person health clinics at 51 stores as well as virtual visits. The company, which last year said it planned to open two dozen more, said it “determined there is not a sustainable business model for us to continue.”

Walmart follows several other large companies in asking white-collar workers to relocate as part of a push for more in-person work. The move comes amid a national stalemate over the return to offices: The effort to get workers back together in person has been ongoing since 2021, and scores of knowledge workers have long since made the transition. Yet office occupancy has hovered stubbornly around 50 percent of pre-pandemic levels across the country’s top metro areas since early 2023, according to data tracked by Kastle Systems.

As the labor market has cooled and layoffs have risen, more leaders have used their leverage to push for a greater return to offices. But workers have been reluctant to give up the flexibility they gained during the pandemic, and they’ve shown their resistance through petitions against RTO, leaving the company and even filing lawsuits .

Since the pandemic waned, hybrid work has become the dominant model for knowledge workers, with 54 percent of remote-capable workers operating under hybrid schedules, according to data from Gallup.

Executives have extolled the value of in-person work since the onset of return to offices, citing benefits to company culture, productivity and collaboration. CEOs such as Tesla’s Elon Musk, Meta’s Mark Zuckerberg and Nike’s John Donahoe have criticized remote work for leading to drop-offs in innovation and productivity. But they’ve provided little hard evidence for these claims, and are probably relying on decades-old research about the importance of co-location of teams, according to Christopher Myers, an associate professor of management and organization health at Johns Hopkins University.

Older research about the benefits of co-location for innovation tends to focus on examples of “things that came about because two people who happened to be near each other started talking about a problem they were having,” such as Post-it notes and Gorilla Glue, said Myers, who is also a scholar with the Academy of Management. But that’s far less applicable in today’s landscape, where technology allows workers to connect far more easily when they’re not in the same place.

“We have more options other than face-to-face interaction now,” Myers said. “Relying on that old research and that old perspective may not be as relevant or helpful.”

Frank Lloyd Wright's midcentury modern home designs are back, now in easy-to-assemble kit form

• Lindal Cedar Homes sells house kits inspired by famed architect Frank Lloyd Wright.
• The kits are based on Wright's famous homes but are updated for the modern homeowner.
• The company told The Wall Street Journal they have sold 10 kits so far.

Frank Lloyd Wright revolutionized America's home design industry almost a century ago. Now, you, too, can build a Wright-inspired home.

Lindal Cedar Homes is now selling "kits" inspired by Wright's designs. The company first announced it partnered with the Frank Lloyd Wright Foundation to create the Lindal Imagine Series in June 2018, according to a press release.

"There's been a surge of interest in midcentury modern homes for the middle class that are affordable and aesthetically pleasing," Josefin Kannin, marketing director for Lindal Cedar Homes, said. "These homes will meet that demand; they are unique, are integrated with nature, and have the feel of a much larger home."

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The house kits are inspired by Wright's 60 Usonian homes, which became a cultural and architectural phenomenon starting in the 1930s, according to the Frank Lloyd Wright Foundation.

The homes were built with the average American in mind, who at that time would have been navigating the Great Depression. The homes — typically made of natural materials and notable roof overhangs — were intended to be affordable and charming.

Lindal Cedar Homes now brings those revered design sensibilities to the modern homeowner.

The Wright-inspired dwellings range in size from small homes measuring less than 900 square feet to larger 3,000-square-foot homes, the press release said. The company's website offers nine options that embrace six of Wright's design principles, like open-floor plans and integration with nature.

One home, dubbed The Madison, is a two-bedroom, two-bathroom house spanning 1,603 square feet. It drew inspiration from Jacobs 1, Wright's first Usonian home.

The company told The Wall Street Journal that it has sold 10 Wright-inspired house kits so far, four of which have already been completed. The outlet reported that one house kit cost nearly $300,000 in 2019, but Lindal Cedar Homes said prices have risen by at least 40% in 2024.

One Usonian home in Wisconsin hit the market in September 2022 and sold for $1.025 million one month later. The homebuyers paid $300,000 above the initial asking price.

Representatives for Lindal Cedar Homes did not immediately respond to a request for comment from Business Insider.

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Stress, confusion and uncertainty as borrowers navigate Biden debt relief plans

When student loan repayments began last October, Rachel Grace was faced with a painful financial choice: start making payments or drop her health insurance coverage. She chose her loans and has since been crossing her fingers that she stays healthy.

“We’re already all pinching pennies. It was that big health insurance cost every month that I thought was the one place where, at least for now, fingers crossed, I can do without so that I can tackle this loan payment,” said Grace, who is 39 and works in marketing communications in Nebraska. “Of course, that could change in an instant, and that’s scary.”

But this week, Grace got the news she'd been in financial limbo over for months — her federal loans were being forgiven, wiping out a roughly $300 a month payment, under a Biden administration plan to clear the loan balances for those who have been making payments for at least 20 years.

After the Supreme Court rejected President Joe Biden’s sweeping debt forgiveness proposal and a Covid-era pause on student loan payments expired , millions of borrowers have been faced with tough financial choices and a web of new debt relief plans and administrative delays that have left many in limbo over if and when their debt will be forgiven, said student debt counselors and borrowers.

“The road to hell is paved with good intentions,” said Betsy Mayotte, the head of the Institute of Student Loan Advisors, a nonprofit that provides free student loan advice. “I have seen a significant number of borrowers who have had relief, but on the flip side, because everything has had to happen really fast, it’s also caused some confusion for borrowers and it’s caused some bumps in the road.”

But the effects of that relief are starting to be felt by more borrowers like Grace, something the Biden campaign is working to capitalize on in the months leading up to the election.

Biden’s efforts to provide relief to student loan borrowers has been a top policy priority during his time in office. The Biden administration says it has provided student debt relief to 4.6 million Americans through more than two dozen different programs, including fixes to a pre-existing loan forgiveness program for public service workers, erasing debt for borrowers defrauded or misled by their school and expanding debt forgiveness for people with disabilities.

Last month, Biden proposed additional plans he said would reduce or erase the student loan debts for millions more as early as this fall, an Education Department official said.

But many borrowers have struggled to make sense of what all those initiatives mean for them or see the full benefits as some programs continue to be implemented, said Robert Farrington, who counsels student loan borrowers and is editor-in-chief of the website The College Investor.

“There is a firehose of announcements and new programs and so many various nuances to all of these things. There’s different repayment plans, there’s different forgiveness programs, different lawsuits,” said Farrington. “It’s hard for borrowers to even know what applies to them. It’s so confusing.”

Education Department officials say borrowers who believe they are eligible for debt relief but haven’t received it yet should contact their loan servicer or the department ombudsman ’ s office .

Amid the confusion, the Biden campaign has been seeking to show the real-world impact on borrowers who have received debt forgiveness in its pitch to voters for a second term, a campaign official said. Biden and other top administration officials have fanned out across the country to tout their efforts.

In one instance, Biden visited the home of a former school principal in North Carolina who had $90,000 in debt erased under the public service loan forgiveness program, a decades-old program the Biden administration has made changes to in order for more borrowers to qualify. A TikTok video of the visit made by the man’s son got millions of views.

Still, the majority of voters have said they disapproved of Biden’s handling of the student loan issue — with 44% approving, making it Biden’s strongest area among registered voters, according to an NBC News poll last month. In a separate poll by the Harvard Institute of Politics, just 39% of voters under age 30 said they approved of the job Biden has done on student loans. But like in the NBC poll, it was a higher approval rating than on other key issues.

The campaign official said it will take more time and aggressive messaging to get the attention of voters, whom the campaign believes are not yet paying close attention to the election. The campaign is also seeking to contrast Biden’s policies with those of former President Donald Trump, who has opposed student debt relief programs and actively sought to eliminate funding for them while president.

Rep. James Clyburn, D-S.C., a close Biden ally, said he expects tens of thousands of additional borrowers to see debt relief ahead of the election as Biden’s programs continue to be implemented, giving the campaign more opportunities to highlight the contrast with Trump’s opposition to such programs, he said.

“Who do you want to put in charge of that program?” Clyburn said in an interview with NBC News. “The guy who refused to implement it?”

Biden “has implemented the program that [Trump] tried to get rid of,” Clyburn continued.

But for the millions of borrowers not eligible to have their debt cleared, they have been required to make payments since October, creating an additional financial strain for many. Around 40% of borrowers who have resumed payments said they are cutting back on spending while 29% said they were reducing the amount they were saving, according to a University of Michigan survey released in January.

The survey found that borrowers who had lower incomes, less education and weaker income prospects were more likely to increase their use of credit to maintain their spending amid the resumption of loan payments.

Others have opted not to make their payments. Around 64% of borrowers who had payments due were current on their student loan payments as of the end of December, according to the Department of Education.

The Biden administration has said it will hold off until this fall on enforcing the harshest penalties for nonpayment, like reporting delinquent borrowers to credit rating agencies and using forced collections.

Mayotte said a number of borrowers she works with have been holding off on making their payments because they can’t afford them or have opted to use the money to pay down higher-interest debt or to invest in high-yield savings or investing accounts until the administration’s nonpayment penalties kick in.

Once that happens, the wider implications of the restart in payments could be felt, but so far it hasn’t appeared to have had a significant impact on the wider economy, according to an analysis by Wells Fargo.

For Grace, who took out around $40,000 in private and federal loans to attend a four-year public university in 2003, she said her monthly loan payments have been a heavy burden on her finances since she first started making them more than a decade ago.

At the start of her career, her loan payments amounted to more than 15% of her take-home pay, preventing her from being able to build up an emergency fund for unexpected costs, like a car repair, and causing her to rack up credit card debt. For years, she said, she had to work a second job on the weekends to cover her expenses.

But her financial picture drastically changed during the pandemic when the Covid payment pause began. Without that monthly loan payment, she said she was able to start building up her savings and pay off credit card debt. Eventually, she was able to buy her first home.

“Prior to that pause, things were pretty dire,” Grace said. “And so this gave me the opportunity to really finally start to catch up. It’s amazing what happens when you don’t have hundreds of dollars month after month going to this.”

Grace said she knew the payment would eventually restart and didn’t take on any additional monthly expenses. But with inflation driving up the cost of everything from groceries to utilities, the resumption of the payment was an even bigger strain on her budget than before.

When it came time for the payments to restart in October on the $10,000 she still owes, Grace was also making a decision about signing up for her employer’s health insurance plan for 2024. She opted to take the risk of going without health insurance to continue making progress on paying down her debt.

With her federal loan payment now forgiven, she knows what she will do with the extra next month.

“I won’t be going to Target with that money, I won’t be going on vacation,” she said. “I will be enrolling in health insurance.”

Shannon Pettypiece is senior policy reporter for NBC News digital.

China unveils 'historic' steps to stabilise crisis-hit property sector

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• State-owned firms to buy "some" apartments
• Central bank beefs up financing schemes
• Data shows house prices, property investment dropping further
• Country Garden liquidation hearing adjourned to next month

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Reporting by Liangping Gao, Ella Cao and Ryan Woo in Beijing and Clare Jim in Hong Kong; Writing by Marius Zaharia Editing by Shri Navaratnam and Susan Fenton

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Take Five: The good, the bad and the ugly

Markets are hoping for evidence that will solidify a brightening global economic outlook, though rising trade tensions are casting a cloud, while G7 finance ministers gather in Italy.

Global equity funds experienced strong demand for the third consecutive week, in the seven days to May 15, bolstered by a softer U.S. jobs report and lower-than-expected inflation figures, which increased expectations that the Federal Reserve may begin cutting rates this year.