Home Based Business: How to Start in 2023
Our world is changing. The COVID-19 pandemic showed us that many of the things we take for granted in life aren’t guaranteed, so the more flexibility you can have the better.
Many people lost their jobs and had to deal with a lot of financial uncertainty, which is why there’s never been a better time to start your own home-based business. Running a business gives you more control over your income, and if your business is online you can work from anywhere in the world.
A home based business is usually a small business that you start and run from your home. You can do it as a main job or as a side hustle.
Table of contents
- The Top-Rated Home-Based Businesses
- What Type of Business Should You Choose?
- How to Start Your Home-Based Business
- Pros and Cons of Home-Based Businesses
But what types of businesses are best and how do you get started? Keep reading to learn everything you need to know about being a home-based entrepreneur.
The Top-Rated Home-Based Businesses
The next step is to decide what type of business you want to start. There are plenty of money-making ideas to choose from, but some options are better than others.
We’ve put together a list of top ten home based business ideas:
Selling on Amazon
Gift Basket Business
Homemade Soap and Cosmetics
Subscription Box Service
Some of them even have no costs upfront, making them accessible to virtually anyone.
1. Private Tutor
Do you have a degree or advanced knowledge about a specific subject? Then a private tutoring business might be for you. There are plenty of students that need help with certain subjects in school, so tutors are always in high demand. Plus it can be started with no investment.
Start by choosing what subjects and age groups you want to teach, then make sure you’re familiar with the curriculum taught in your local area. Next, advertise your services. You can promote your business online in local listings, or go the more traditional route and advertise in the newspaper.
2. Selling on Amazon
Most people think of Amazon as a place to shop, but it’s also an excellent way to make money. Plenty of people sell their own products on the platform and make over six-figures a year or more.
One of the things that makes selling on Amazon an easy business to set up is their Fulfillment by Amazon program. This allows you to send your inventory to Amazon and store it in their warehouses. When someone buys one of your items they’ll ship it to the customer for you.
For those who have been thinking of starting an eCommerce business, this is definitely the best way to do it. It’s also the perfect business for a husband and wife to do together. Plus, there are a number of tools available, like those offered by AMZScout, to help with market research, calculating profit margins, finding keywords for listings, and more.
3. Freelance Photographer
Photography is a fun hobby, but lots of people are actually turning it into a profitable business. More and more people are turning to professional photographers to help capture the special moments in their life, so there’s plenty of demand for this type of work.
First, you’ll need to get the right equipment and editing software. If you’re an avid photographer you probably already have everything you need, making this a cheap business to start. For those that are new to the craft, it’s probably a good idea to take some classes to help you hone your skills.
Once you have a solid portfolio, create a website or blog and advertise yourself. Social media is often the best way, as it’s a great platform for sharing your work.
4. Gift Basket Business
People love gift baskets. They’re a great solution when you don’t know what to buy someone, and they’re also fun to make. Because of this, lots of entrepreneurs are turning gift baskets into a business.
To start, you’ll want to come up with a niche and a specific audience to target. After that, you’ll need to decide what will be included in your gift baskets and where you’ll source your products from. Finally, you’ll need to create and market your baskets.
Podcasts are the new radio, and this form of media is currently at the peak of its popularity. Everyone is looking for the next hit podcast, so if you have an idea for a new show now is a great time to launch it.
All you need to get started is a microphone and something to record yourself with, making it a good low-cost idea. There are plenty of places to upload your podcast, including Spotify and the Apple store. You can create a podcast with just yourself or invite guests on to have a little more variety.
If podcasting is the new radio then YouTube is the new television. More and more people are turning to this website for their video content, which means there’s always room for new creators with great ideas. Best of all, if you already have a smartphone with a camera you can probably start this business with no money upfront.
Figure out what you’re most interested in and start making videos on that. Or you can create videos on a few different topics and see which ones get the most views. Getting popular on the platform can take time, but if you produce quality content you’ll eventually start building up subscribers.
7. Homemade Soap and Cosmetics
The beauty industry has always been lucrative, and now plenty of small businesses are getting involved. Craft and homemade beauty products are becoming more popular, which has opened the door for independent sellers to enter the market.
Making these products at home is surprisingly easy and there are many recipes online. Plus, unlike food they last forever, giving them a much longer shelf life.
Soaps are the most common product people make, but there are plenty of other items you can sell, including face scrubs, moisturizers, and deodorants. This business is a little more time-intensive, but for moms who are already making a lot of this stuff themselves, it’s a great fit.
8. Homemade Jewelry
This is another option for women and men who enjoy arts and crafts. It’s also perfect for retirees who are looking for a new hobby. And because jewelry is generally small it costs less than making home décor items.
Not everyone is looking for expensive gold and diamond jewelry from a well-known franchise or dealer. There’s a big market for homemade products that are unique and original.
If this is something you’re interested in, decide what type of jewelry you want to make. Go online to see what’s selling well, then source your materials and start designing. When your products are ready promote them online and spread the word.
9. Subscription Box Service
This is one of the newest business ideas and has been a big trend in recent years. How it works is people subscribe to a service and then every month they get sent new items. It’s a great way for consumers to discover new products that they wouldn’t have otherwise thought to buy.
To start, you’ll need to come up with a theme for your subscription service. Do your research and see what other companies are doing to get ideas. Then, start designing your box. Finally, launch your site and use internet ads and social media to promote your service.
10. Freelance Copywriter
There are plenty of freelance businesses you can start, but copywriting is probably the easiest. You don’t need any expensive software or equipment so there’s no startup cost, and you don’t even need a lot of experience. If you can write well and can prove it, people will hire you.
To get work, create profiles on sites like Upwork, Freelancer, and Fiverr and then start applying for jobs. You may need to take some lower-paying work to start, but once you build up enough positive reviews you can start charging more for your articles.
It’s a great option for men, women, and pretty much anyone. And it can all be done from your house, making it the very definition of a home-based business.
What Type of Business Should You Choose?
As you can see, there are plenty of businesses to choose from. But what is the best one? In our experience, selling on Amazon is usually the real winner for the following reasons:
It’s the most profitable
It’s one of the fastest-growing businesses
You can get started with a small budget
The Amazon FBA program makes it easy
It can be highly automated
It can be scaled into a larger business
Best of all, getting started is relatively simple. There’s plenty of information online, and with a number of helpful tools available even beginners can build a profitable business.
Here’s a quick rundown of how this business really works:
1. Find Products to Sell: Use the AMZScout Product Database to define your requirements and find products that interest you.
2. Do Product Research: Once you have some items you’re interested in, use the AMZScout Pro Extension to check average monthly sales, reviews, price history, and other statistics to ensure they will make you money.
4. Create your Product Listings: Use AMZScout’s Keyword Search and Reverse ASIN Lookup tools to find the right keywords to include in your listings. You’ll also want to feature lots of high-quality images.
5. Fulfill your Orders: Send your inventory to Amazon. It will be stored in their warehouse and shipped to your customers anytime someone buys one of your items.
If this sounds like the type of business you’d like to start then check out this detailed blog post written by an experienced seven-figure Amazon seller. This will provide you with more detailed instructions, some valuable tips, and examples of how to build an Amazon business.
How to Start Your Home-Based Business
No matter what type of business you plan to start, there are a few steps you’re going to have to complete in order to begin:
Create a Business Plan: This will help you plan out your business and define what you need to get going. Include a summary of your business, your goals, funding, your ideal customer, the materials you’ll need, expenses, etc.
Write a Schedule For Yourself: The hardest part of being your own boss is staying on schedule. You don’t have someone telling you when to work, so create a schedule for yourself and stick to it.
Organize Your Work Space: Ideally you’ll have a spare room for an office, but if not identify a section of your home that will become your workspace. Gather and organize all the supplies you’ll need to effectively run your business.
Create a Marketing Plan: You may provide a great product or service, but it won’t matter if nobody knows about it. Come up with a strategy for how you’ll promote your business, whether that be digital ads, social media, or print advertising.
Get the Necessary Licenses and Registrations: Depending on what type of company you’re operating you may need a license, registration, or insurance to run a legitimate business out of your home. Do your research and ensure you’re following the laws in your local area before getting started.
Don’t skip these steps. Those who are more prepared are usually the most successful.
Pros and Cons of Home-Based Businesses
Running your own start-up from home has a lot of advantages, but that doesn’t mean it’s without its downsides. Every kind of work you do will come with pluses and minuses.
So, before deciding to start a home-based business let’s take a look at the pros and cons.
Set Your Own Schedule: One of the benefits of working for yourself is that you decide when you work and for how long. This can help you create a better work-life balance.
Do Something You're Passionate About: Ideally, your business will focus on something you enjoy. When you love what you do your work is far more fulfilling and your quality of life is greatly improved.
No Commute: One of the worst parts of working in an office is the commute. But when you work from home you’re already at work. This saves you tons of time and means you don’t need to spend part of your day stuck in traffic.
Higher Earning Potential: When you work for an employer, you make whatever your contract says you do. Occasionally you might get a raise, but overall it’s hard to increase your earnings. But when you run your own business, your earning potential is unlimited. Generally, the harder you work the more you’ll make.
More Family Time: Because you’re at home all day you’re able to spend more time with your family. Even when you’re working your partner and kids are right there, meaning you’ll get to see a lot more of them.
Pay Fewer Taxes: Having your own business means you can write off certain expenses, which will save you money come tax time.
Isolation: When you work from home you usually work alone. This can lead to some feelings of loneliness and you may miss the camaraderie that comes with working in an office.
No Division Between Work Life and Home Life: The one good thing about working in an office is that once you’re done for the day you can leave. But when you work from home there isn’t that clear separation between work and home, so you might never feel like you’re “off the clock.”
You Might Work Longer Hours: Because there isn’t a clear division between work and home you may end up working longer hours. However, if you really love what you do and enjoy working on your business then this might not be a problem for you.
Remember, running a home-based business isn’t for everyone. Make sure to assess the pros and cons and decide whether this type of lifestyle is right for you.
Home-based businesses give you more financial security and help you gain another source of income. So what are you waiting for? Start your entrepreneurial journey and try one of the businesses on this list. If things work out your business it may even go from a part-time hobby to your full-time job.