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How to Start a Business from Home: 5 Simple Steps For (2023)

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Faced with an unstable job market and rocky economy, it can be challenging to find a steady source of income. You’re not alone; many are struggling with the same problem.

Luckily, today’s high-tech gear is allowing more and more businesses to move online. As a result, this is making it accessible to launch a home-based business.

The good news is that you can learn how to start a business from home to help bring in extra cash.

And you can do it without any of the hassle and heartache that come with a traditional 9-to-5 job.

So, whether you’re looking to replace your full-time job or as a side hustle, we’ve got you covered.

We rounded up some of the best ideas to get you inspired. Take a look.

The Basics of Starting a Home-Based Business

A home-based business entails pretty much many of the same steps and preparation as any other type of business. Yet, you can safely skip the hassle of finding a retail space or office to set up your office.

What Is the Easiest Business to Start?

Here’s a quick rundown of some of the easiest and fastest businesses to start from home.


If you’re good at writing and own a laptop, then you’re halfway there. Yet, because there’s such huge competition in this field, you have to constantly sell yourself on numerous freelance marketplaces, and social media platforms. In fact, many freelancers get their first customers when they join various social media small business groups.

Networking is key. So, be on the lookout for writer meet-ups, workshops, and various writing events in your field of choice. Another good place to start is freelance marketplaces like LinkedIn, craigslist, Fiverr, and Upwork.

Selling on eBay

eBay has been around for nearly two decades now, and it’s still going strong as a viable platform for home-based businesses.

Yet, there’s a huge amount of competition on the site. So, you have to know your specialty, understand how to market your products and familiarize yourself with the pricing.

Say you make your own scented soaps or candles. Then, that means you’re qualified to set up your personalized shop on eBay and sell your products.

Jewelry, hand-made crafts, and DIY home decor are a few other examples that do well on eBay.

Affiliate Marketing

Affiliate marketing is when you have a blog and place links to other businesses on your blog. In turn, they pay you a commission for mentioning their products or services on your blog to your clients.

You can set up this virtual partnership directly with the affiliate marketers you’re promoting. Another option is to work through a trusted affiliate marketing network that serves as a go-between, such as ClickBank or ShareASale.

The Full Rundown of Starting a Small Home Business

Now on to starting a small business from home. We rounded up some of the most successful and profitable ideas to get your creative juices running

You’ll also find some tips and tricks to help you get your business up and running and find out how much it costs to start a business, even if you have minimal business financing.

What Are the Most Successful Small Businesses?

According to recent statistics, these businesses are topping the charts.

Food Trucks

Are you a good cook? Then, an on-the-go food business is the way to go. They’re highly profitable, super versatile, and require minimal investments.

That said, building a successful brand takes time and a lot of hard work. So, make sure you’re in it for the long haul.

Car Washes

A car wash business can be fun and exciting if you understand the ins and outs of the different car models. People are holding on to their vehicles for longer, so it makes sense they’d want them cleaned as often as possible on the inside and outside.

Social Media Management

A social media manager oversees a company’s interactions with social media platforms. They do this by implementing content strategies, designing digital campaigns, and analyzing engagement data.


The cleaning business is steadily growing because it’s a necessity that not everyone has the time or willingness to do for themselves. Plus, it doesn’t require much experience, only a bit of elbow grease.

Online Courses

If you’ve been teaching something for a while, you’re qualified to teach an online course!

After creating a curriculum, the next step is to market your course by joining communities like Udemy, Masterclass, or LinkedIn. Yet, keep in mind that they’ll take a percentage of any generated revenue.

The next step is to create your own website. It’ll cost you in the beginning, but you’ll guarantee that you get 100% of the revenues.

What Business Can You Start Doing from Home?

The following are the best work-from-home jobs.

Profitable Home Business Ideas

Check out these fun, profitable ideas.

Print on Demand

All a print-on-demand business needs is an eye for creativity. You’ll also need a printing machine, but you can either buy, rent, or outsource it, so that’s not a problem.

Another benefit is that you don’t need to store any inventory. Your products are made-to-order, whether they’re hats, tote bags, T-shirts, or other apparel.

Sell Products on Etsy

The best part of working with Etsy, is that the possibilities are endless. Plus, the site makes it easy to market your products to reach millions of online shoppers with minimal seller fees.


Dropshipping is when you serve as the middleman between a wholesale distributor and the client. There’s no inventory so it’s low-cost. Yet, you do have to pay to set up a website to list your products or find one that will list them for you like Shopify, Zoho, and Shift4Shop.

Be a Virtual Coach

As a virtual coach, you need to be clear on the type of people you want to work with and who would best benefit from you. Also, keep your concept simple and approachable to benefit a broader segment.

Sell Online Courses

If you’re an expert in a certain field, then creating a course and running it online is the way to go. Make sure you pick something you’re qualified to teach and have been doing for years.


As mentioned above, freelancing is an easy way to make some quick money. Yet, you do need a moderate amount of writing and editing experience.

So, look online for courses to boost and maintain these skills.

How to Start a Business from Home

As with any type of business, a home-based venture requires lots of planning and preparation. It also needs the right documentation before you can officially and legally introduce it to the public.

How Can You Start a Small Business from Home with Little Money?

You may have little to no money, but that doesn’t mean you can’t become a small business owner.

Reflect on Your Strengths and Weaknesses

Make a list of your strengths and weaknesses, along with your skills and talents.

For example, if you’re good at working with wood, you might think about starting to make and sell your handmade wood pieces.

Think about Your Prior Work Experience

Think of all the various odd jobs you used to do. Maybe you used to walk your neighbors’ dogs, babysat, or worked as a camp counselor. Each one probably added to your skillset in one way or another.

Find a Free Idea That Feels Right

Unfortunately, not each of your skills can become a viable business. You may be great at skateboarding, but starting a skateboard coaching business doesn’t seem like a solid venture.

Do Your Research

Research the types of successful businesses already running. Knowing who your competitors are will help you decide what your target market looks like.

You’ll also be able to know which products or services are in demand and if there’s a gap in the market, you can sweep in and use your skills to fill in that gap.

Start Marketing the Product or Service

Marketing is a vital component of any business. However, it’s especially important when you’re starting out as a home-based aspiring entrepreneur.

Your market strategy should be based on your initial business plan. Then, as your audience grows, you can adjust the strategy accordingly.

How to Start a Small Business at Home Online

Follow these easy steps to get your business off the ground.

Come up with a Business Idea

When launching a small business at home, start by deciding what kind of ideas interest you the most.

According to the Small Business Administration (SBA), 70% of home-based businesses are those in the information industry. This is closely followed by businesses in the construction industry coming in at 68.2% of all home-based online businesses.

Research the Market

No matter how good an idea is, it won’t sell if there’s no demand for it.

Through your research, you’ll be able to gauge how you can decide who your target customers will be. Then, you can create a suitable value proposition that best describes what services and products you’re offering.

It’s also a great way to entice customers to do business with you rather than your competitors.

Choose a Name for Your Business

Once you’ve done the research and found the best-ever idea for your business, it’s time to give it a name.

Make sure you choose something memorable and easy to brand. It also has to be a name that makes it clear what it is that your business does or what services it provides.

After deciding on a name, check to see if it’s available. You can do this through the business bureau website, your secretary of state’s website, or the US Patent and Trademark Office (USPTO).

Figure out a Business Tax Structure

Business taxes can be tricky to navigate, especially being an at-home business owner because of your unique set of tax obligations.

For example, you’ll need to pay self-employment taxes each quarter issued to both the state and federal government. If you have employees, you have to set up payroll withholding accounts.

Also, if you collect sales tax, you’ll need to set up sales tax accounts, which vary from state to state.

The good news is that you may be liable for various tax deductions.

One example is a home business deduction when you use your home office or guest room as an exclusive place of business. Use Form 8829 to calculate the deductions so you can save money come next tax season.

Take Care of Legal Matters

The entity type determines whether you’ll need to register your business with the state. However, in this case, the business name will default to your legal name registered in the state where you’re operating.

If you prefer to give your business a different name, you can file a ‘doing business as’ (DBA) request with your state. This allows you to operate your business under the name you choose rather than your personal legal. name.

Take a look at the four most common business entity types and their tax structure:

  • Sole proprietorship: tax filing is quick and simple
  • General partnership: deducts the majority of business losses on personal tax returns
  • Limited liability company (LLC): you choose how you want your LLC to be taxed
  • C-corporation: faces more tax deductions and lower self-employment taxes than other entities, and is liable to double taxation with no deduction of business losses on personal tax returns

Start a Website

To make the most of your business website, choose a domain name that’s short, user-friendly, and easy to remember. Then, check if the domain name you’ve chosen is available.

Start Marketing

Create a catchy marketing and sales plan to get as many customers to your website as possible. The more you get the word out about your products and services, the faster you’ll start making some money.

Launch Your New Business

Don’t be discouraged if things don’t take off right away. It takes time for any good idea to gain traction. Remember to stay vigilant, learn from your mistakes, and enjoy the ride.

How to Run a Business from Home Legally

These are the basic legal matters you need to focus on in the process of starting a business at home.

Figure out a Business Structure

A business type, or structure, is the same as the entities mentioned above. So, take a look and decide which one best suits your business plan.

Register Your Business

Once you’ve decided on a structure, it’s time to register your business via a registration form with your state or local government.

You’ll also need to contact the Internal Revenue Service (IRS) to determine which taxes you’re responsible for and which can be deducted.

Get a Business License

Before launching your small business from home, you need to determine which permits and licenses apply to you.

Some may vary from state to state, but the following are the most common:

  • Home occupation permit
  • General business licenses and permits
  • Property use and zoning laws

Wrapping Up

Now that you know all the ins and outs of how to start a business from home, the sky’s the limit. Remember to use the tips in this post and adhere to your local authority’s rules and regulations.

Soon, you’ll have a winning home-based business you enjoy and can make good money from.

Comment below if you have any questions.

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