GREENSBORO, N.C. — If you're planning to start a business from home or set up a side-hustle, experts say it's still a good time to do it, but you have to be smart about it.
Mike Nunez CCO of Incfile shared with WFMY News 2 what budding entrepreneurs should do and what to avoid.
First, he said you need to understand what sets you apart from other businesses. Why will people come to you instead of others?
"People will buy from the most trustworthy retailer for the least expensive price," Nunez said.
Nunez said you will have to convince people that's you.
Second, he said you have to understand your financials.
"You have to really understand, how much this thing is really going to cost you to make, cost you to sell it in terms of marketing costs, and then how much you are going to make from it," Nunez said.
By doing the math he said you can figure out if the venture is worth your while.
And third, Nunez said you have to have a business plan in place.
"Your chances of hitting your target go way up if you are aiming at it. So if you are saying, this is where I want to be and this is when I want to be there, then you can start planning how you want to accomplish that in that time period," Nunez said.
Now let's get into some pitfalls.
Nunez said aligning yourself with the wrong online platform to sell your product can be detrimental. The three he recommended were Shopify, Amazon, and Etsy.
Another pitfall he mentioned was not protecting yourself from liability.
That’s why Nunez recommended starting a limited liability company or LLC.
It acts as a shield between your personal assets and business assets in case someone takes you to court or you have to file for bankruptcy.
"If you own your home right, they can’t pierce the LLC and take your home away. Right? Whereas if it’s just you at home starting this business with no corporation, now if something goes wrong they sue you personally and everything that you have is at risk," he said.
Nunez also shared a few tips for those wanted to open a brick and mortar building.
"You have to build in things like renewal options. You can say, 'Yes I will sign this five-year lease, but I want two five-year options at a predetermined increase every year," Nunez said.
He added it's better to try to purchase an existing location rather than trying to convert a location for your space.
And lastly, if you have the funds he said to consider buying a business that you can turn around.
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