What is a home-based business?
Home-bases businesses are the fastest growing start-ups. A home-based business is a small business that is carried out from the home itself. It usually starts as a small scale venture which has tremendous potential to turn into a big business. Home-based business ideas are generally a secondary source of income. However, this is not true in all cases.
Benefits of home-based business ideas.
Home-based business ideas have a lot of benefits such as :
- Deduction of costs in terms of an office, a warehouse or renting the same.
- Flexibility in scaling the business.
- Allowing you to experiment and test new ideas.
- Flexibility in working hours.
- Various tax advantages.
- Increasing creativity etc.
There are various ways of sourcing an income from home-based ideas. They don’t require a large investment, labor or workspace. Some of them are mentioned below :
Selling baked goods.
If you have a passion for baking, you can use that to source a tangible amount of incomes. Cakes, biscuits, cookies, and chocolates are always in demand. You can also cater to various events, functions, and parties.
If you are skilled to make various essence products like candles, soaps and body washes, perfumes, you can earn an income out of them.
Cooking or baking classes.
If you are exceptionally good at either of these skills, you can start classes of your own.
Content writing and content creation.
It requires minimal investment to work as a freelancer in the field of writing, video editing, graphic designing, and art.
Baby sittings/ Day-cares and pet sittings.
If you don’t have a full-time job, you can earn a certain amount of income from taking care of people’s children and pets. However, it would need a minimal investment when it comes to space and hiring some help. Also, permissions from the local authority are required.
If you have the knack and expertise for designing and sewing clothing, you can start a business right away. With a minimal investment of machinery required for stitching and tools required for designing, you are good to go
If you have a passion for teaching and are particularly well versed with certain subjects or topics, you can start your own classes at home. These businesses tend to grow exponentially.
You can start your own beauty parlor, massage center, hair salon or a spa at home depending upon your skill and investment.
Many MNCs hire freelancers to update their back-end data. It is a fairly easy way to earn some extra income.
Selling home-cooked food.
Food items which are specifically needed during festivals such as modaks, puran poli’s etc can turn out to be a nice way to earn some seasonal income.
Legal compliance to start a home-based business.
- Company registration with the government is mandatory even for small-scale businesses. It gives your business an identity and hence is very important.
- After the incorporation of the business, it is necessary to get an MSME Udyog Aadhaar number. It is mandatory for all small and medium scale businesses. You get various benefits from the government after registering for the same.
- A GST registration is required if your business is earning a profit of more than 20 lakh rupees annually. It is 10 lakhs for certain category states and enterprises. It is also required for tax credits.
- Certain businesses may also require a trade license from the municipal corporation in case of starting the business from a small shop.
- For food-based businesses, an FSSAI license is a must.
- In case any staff is hired, registration under Shop and Establishment Act is required. Also, an ESI and EFP registration is required against a certain threshold limit of employees.