So you are looking to find out what is the best home business to start in 2020. There are a lot of businesses you can start at home. Which one might be right for you? And which one would be best to start right now in 2020? We’ve compiled some things you should consider when thinking about the options and how to pick the “best” (hint: it might not be what you think).
What are the Options for a Home Business
Before we decide on the best home business to start it would help to understand what the options are. The basic types of business are Service Business, Merchandising Business, or Manufacturing Business. We have a post that gives some definitions of the basic business types. It boils down to making things, selling things, or doing things or some combination of these.
Most of us have an understanding of these ideas of business, but if you’re thinking about starting a business you really need to decide what kind of business it will be. Each comes with its own set of rewards and its own set of challenges. Maybe you already have experience in one or more of these types of business and already know that’s what you want to build. Or maybe you have experience and therefore know that’s what you DON’T want to build.
So do you know whether you want to make things, sell things, or do things?
If so, do you know where you want to do business? Well, since you’re here reading this article, you apparently want do business from home. Making things (manufacturing) from home can be done. Unless you have a large space like a barn or shed making something at home usually implies something small. Lots of people do woodworking, crocheting, sewing, painting and similar activities then sell their products at fairs, local shops and online.
There are many home-based service businesses that are likely to do well in 2020. In the online business segment you could offer services such as being a virtual assistant, a program coder, or a customer service representative. You could be a writer who produces ad copy, articles, or written instructions for others. If you have the knowledge and skills, you could teach from home, offer legal or financial services, or
A merchandising business from home could be an e-commerce business where you actually buy products at wholesale and resale them at retail. It might likely be a drop-shipping business where you never actually hold the products in inventory, but just build an online storefront to sell products and have them shipped directly from a manufacturer or warehousing business. You can also sell by building an affiliate marketing business, which is sort of a hybrid business between a service business and a merchandising business.
Does it Matter That It’s 2020?
For many businesses that you might start, it probably doesn’t matter that it’s 2020. You probably want to pick something with staying power. Something that is “evergreen”, meaning that it is always in demand. However, there are factors that might make it beneficial to think about the unique characteristics of this year.
The obvious place to start is with COVID-19. The pandemic has hurt many businesses, but there are also many businesses that are thriving in spite of, or in some cases because of, the world circumstances. If you have experience as a seamstress then making masks from home is probably a good business idea right now. That’s a manufacturing business that can be done from home.
With the extended shelter-in-place orders that have been issued many people are working and shopping from home. Many of these people are looking to develop new skills, so it would be a good time to start an online business where you teach some of your existing skills by posting a video or written course. You could identify sources of goods that are in demand and start an e-commerce business offering some of these products.
Another business opportunity that fits well with a specific time frame, such as the current year, is something based on pop culture of the time. You could manufacturer products at home based on popular shows, movies, games or music of the day. (Be sure to consider licensing rights if you go this route). You might create your own unique brand based on the year. Maybe something based on the cliche’ “hindsight is 2020” for instance.
“Best” Depends on You
Now that we’ve gone over some of the basic options for being in business and some specifics to consider about starting a business at home and something specific to the fact that it’s 2020, let’s move toward your original question, “What is the best home business to start in 2020”?
“Best” is often a subjective term. What is best for one person is often not best for another person. A lot of the definition of “best” depends on you. For instance, what resources do you have available to start your home-based business? How much money do you have, or can you obtain, to invest? How much time do you have to invest on a daily, weekly or monthly basis? What goals do you have for your new business? How much profit do you want to make and in what period of time? Do you an existing income you want to replace? Do you want to make extra money and keep doing what you are currently doing? Do you have travel or lifestyle plans you would like to achieve? Do you have a philanthropy goal?
Another factor in what is the best opportunity for you is your existing knowledge and skills. Or maybe what knowledge and skills will be needed for the business and if you don’t have them how long will it take you to gain them. Or do you have enough money to invest to pay someone else to do some of them for you? Or maybe you have someone you trust enough to partner with to fill in the gaps and complement your own skill set and knowledge base.
Choosing the “best home business” for yourself depends on all these factors, not just the nature of the opportunity itself. Many people define “best business opportunity” as “what can I do to make the most money the fastest”. But they fail to choose based on their own situation.
Remember to Keep it Legal
Many people looking to start a home-based business take the approach that they will just start doing something and either worry about the legalities and financial implications if it works out. If you are really serious about your business it would be good to start off planning for the legalities and accounting realities from the start.
Should you create a legal entity such as a corporation? What are the requirements in your state, county, city, and/or neighborhood HOA that will govern your business operations? What bookkeeping and accounting knowledge, skills and tools will you need in order to accurately track your progress, pay your bills and pay your taxes? You need to open a second checking account to keep your household and business income and expenses separate.
Don’t let your enthusiasm and hard work get wrecked by not planning ahead for the legal and financial realities of your new home business.
You probably have some ideas now. Make a list of the types of business you are considering. Be realistic about the resources that you have, or can obtain, to start your business. Ask some family and friends what they think you are good at. Check on the requirements for keeping your work from home business legal and in good health. Make a plan. Then act on the plan. Best of luck and we look forward to hearing from you and continuing to be a resource as in your home business journey.
Leave a comment below to let us know your plans for your business.