Because of the pandemic, 40 million people in the US lost their jobs. It is difficult for the jobless to find new jobs since more and more companies are shutting down or laying off people. Many of those who still have jobs are feeling anxious about their job security.
If you lost your job or are living in fear of losing it, you can take steps now to have power over your financial well-being. According to Forbes.com, 2021 is a good year for entrepreneurs to set up a new business.
Be the Boss
It may seem overwhelming and counterintuitive to start a new enterprise this year in the middle of the pandemic, but even in the third quarter of 2020, there were 1.5 million applications for new businesses in the U.S. This was almost twice the number of applications in the third quarter of 2019.
According to the U.S. Census Bureau, in January 2021 there were 492,000 applications for new businesses, almost 33 percent more than the new business applications in January 2020.
Even if Covid-19 is causing many difficulties, entrepreneurs are stepping up to the challenge. They would rather take on the risk so that they know where they stand financially, rather than having a job that depends on the business decisions of someone else. Owning the business means you are in control and you are also accountable.
Do It from Home
A majority of the working population is now doing remote work from home to prevent the further spread of Covid-19. Many companies reportedly plan to make remote work a permanent arrangement for some or all of their employees.
Many employees prefer to work from home because it is more convenient. They can save time from not having to commute to and from work and, therefore, have more time for rest and leisure activities. This schedule enables them to recharge properly and be fresh for every work period.
Since you own the new business, it is up to you to determine the setup that will be most beneficial for you. Doing business from home gives you all the perks that those employees are enjoying. For instance, you can relax by having a massage at home before and after work hours. All you need to do is to choose from various massage chairs online, and you have a home spa. Light some aromatherapy candles to complete the ambiance.
Be on the Web
While many businesses folded, many also succeeded during the pandemic and the latter are the ones that quickly shifted their operations online. Brick-and-mortar offices and stores closed as people are avoiding going out and now prefer to purchase commodities and services online.
Your home-based business must likewise operate online 24 hours a day, seven days a week to compete. Your website is your office and storefront in one, hence you must invest in the best website you can afford.
Hire a professional website building and maintenance service to do this for you. Alternatively, find an IT professional you can hire part-time if he or she can do the job for less.
Your website must be attractive and user-friendly and must enable any visitor to make a purchase and pay for it in a smooth and easy transaction. It must have an automated chatbot to answer queries at any hour, and you must follow up as soon as you can to engage with the visitor who made a query.
Lower Your Overhead
Since your business is home-based, you immediately save on rent. If you start as a one-person operation with no staff, you save on monthly salaries. It is better to hire part-time services on a need basis.
While you need to pay for IT services if you do not have that skill, online marketing for your business is easy to learn and do by yourself. This will save on advertising and marketing expenses.
Taxes are a given expense, but you must also investigate legitimate means of lowering your taxes through tax deductions. In the simplified home office tax deduction method, you can claim $5 for every square foot of your home office space. This means the actual portion of your home that you use exclusively and regularly for your business and can only be 300 square feet or the actual square footage of your home office, whichever is smaller. The maximum deduction you can claim is $1,500.
Find out if you get a higher deduction using the regular tax deduction method. In this method, you can claim a proportional percentage of your rent or mortgage interest payments and real estate taxes, as well as renter’s insurance or homeowner’s insurance. You can also claim a proportional percentage of your utility bill, maintenance and repair costs for heating and air conditioning equipment, and services such as security services, cleaning services, and garbage collection. Fully deductible are repairs in the home office area and the purchase of business equipment and office furniture. If the deductions exceed your income, you can split the deductions between years.
Sit Back and Work It
Running your new enterprise online from home is your best bet in 2021 and the foreseeable future. Consumers are most likely to continue with the purchasing habits they developed during this quarantine since it is much more convenient to shop from home.
Sit back and enjoy your freedom and advantages as you work hard to build your business. There is a unique thrill and sense of fulfillment to doing it on your own.