Home-based businesses are companies operated from the owner’s residence. A wide range of professionals can opt to run a home-based business, including therapists, interior designers, website developers, and resellers.
You may opt to start a home-based reselling business for several reasons, including your need to follow social distancing guidelines due to covid-19 or your desire to take advantage of the extra time at home by eliminating your commuting time and costs. Follow these steps to prepare to launch your home-based reselling business successfully.
Research your industry and supply vendors.
Research competitors and determine if there are service gaps you can meet. Tapping into unmet demand is an effective way to distinguish your company from competitors.
Resellers are retailers. They acquire products from suppliers that they sell to consumers. You can opt to sell grocery items or garden supplies, but either way you need to see yourself as providing a service to your customers. If you’re running a grocery store, you may want to identify the most popular soda flavor or brand to determine which products and food items you want to include in your store pantry.
Identify resource suppliers. For example, you can acquire a refurbished computer, smartphone, and other home electronics products from The Store. Buyers may return products due to cosmetic defects or other issues. These products are tested and repaired to ensure they work properly. A refurbished model costs less than a new version of the same item, which means you can make more on reselling.
Your research should prepare you to write your business plan. As you develop your plan, you may need to expand your research to ensure you have all the relevant data required.
Prepare a business plan.
Your business plan should begin by outlining the nature of your business and your company’s goals. Present critical information about the market potential, including the challenges your industry faces and its advantages. Clarify strategies you’ll use to overcome hardships and capitalize on opportunities.
Determine how much it will cost to operate your company for one year and prepare an operating budget. Your budget should include the cost of employee salaries, storage items, shipping materials, electronics, electricity, and other essentials you need to operate.
Develop revenue projections and determine how much you expect to sell and how much money sales will generate. Your business plan should also indicate what type of business you plan to run. You could operate as a sole proprietorship, a limited liability company (LLC), a corporation, or a partnership. Each business structure offers distinct advantages and disadvantages, and your business plan should indicate why your chosen structure is suitable for your business.
Develop a marketing strategy.
Your business plan should outline your marketing strategy. Social media marketing is a powerful method of reaching consumers and plays a critical role in search engine optimization (SEO) marketing. With a website and an effective SEO strategy, you can increase your company website’s domain rating (DR) score. Websites with a high DR score are listed first when people search for appropriate keywords. A high search engine placement can direct traffic to your website. You can boost your site’s DR score by incorporating keywords into your onsite content, including a link to your site in your bio when you contribute offsite content to blogs or other sites, and ensuring your website is easy to navigate. You can also raise your company’s profile and generate traffic with an effective social media presence on critical social media sites, such as Instagram and Facebook.
Secure the resources you need.
Once you have a comprehensive business plan, you can approach lenders and potential investors to generate the capital required to launch your company. With capital, you’ll be able to secure stock and purchase crucial resources, such as shelves, storage containers, packing supplies, and electronics.
Before you can take advantage of the extra time at home and extra time with family members, you may need to invest in renovations to accommodate your business needs. Due to Covid-19 and social distancing requirements, you may also provide care for family members with medical needs in local communities. Consequently, you may need to renovate your home to accommodate their needs. You may need to adjust your work hours or primarily work during the evenings and Sundays to prevent disruptions while contractors are completing their tasks.
Launching a home-based reselling business begins with research. Once you understand your business field, you can determine which business structure your company should use and clarify your business goals. With a comprehensive business plan and marketing strategy in place, you’ll be able to secure the resources you need to launch your business.