This article gives five tips for starting a business from home, which may make the difference between success and failure.

Squandering valuable time on minutiae

Beware of getting bogged down with details, when starting your new business. Keep things as simple and tidy as you can. You can then keep improving as you go, making changes and tweaking things as the need arises and when time allows. As things progress, you will find that there is a lot to do and you cannot afford to waste time with niceties at this stage. When you are starting a business from home this is a particularly important factor, since there are often many distractions to take your attention off what it ought to be on.

Problems with partnerships

Beginning in partnership with another, unless this is necessary, may not be advisable, since it adds an additional risk; the risk of the company breaking up under the pressures that are sometimes characteristic of start up ventures. Differences are bound to arise in the course of time, which can result in differences that are counter productive.

Don't under sell yourself

You should set out expecting to charge what you are worth. It is a common mistake to seek to undercut one’s competition on price from the outset. You should think of ways to add value, without compromising your rate. You have the benefit of being able to research the market prior to entry, ensuring among other factors, that the demand will bear your charge out rate.

Be prudent

Excessive expenditure is another danger when setting up a business from home. You could for example purchase second hand office equipment. This will save funds that can be better employed for investment in plant machinery or equipment from which your revenue will be generated. It will also reduce your losses if your business fails. Think frugally; for example two businesses in the same building may be able to share secretarial services or office equipment.

Form filling

Don't get caught up with filling out forms for government departments when that can be done during other less productive times of the day. As you have opportunity concentrate on marketing or selling because that is the business you are in; marketing to earn revenue, not form filling.

Following these steps, should improve your chances of successfully starting a business from home. This is the first article in a two part series. The second is entitled “Running a business from home”, both give tips and ideas for starting a business from home.