Everything You Need to Know About Starting a Garage Business
More and more people are turning to a garage business as an opportunity to make extra money, or even to start a full-time career. This can be especially appealing in today’s economy, where many industries have been hit hard by the recession and unemployment rates are high. A garage business might be your ticket to financial freedom and the ability to live your dream life. However, you need to know how to start one of these businesses properly or you could end up struggling with it and giving up on it before you even get started.
Types of Garages
Garages can be made into any type of business, whether it’s a home-based operation or one that operates in the confines of another building. Here are some great ideas for what types of businesses work best inside garages:
-Garage stores: these offer an eclectic selection of items, oftentimes with low prices
-Gift shops: perfect for trendy items like candles and handmade soaps
-Craft sales: if you make art or sell homemade crafts, this could be the perfect location for you to set up a shop
-Flea markets: fleas are great for selling an abundance of random merchandise that you may have laying around your garage, like clothes and vintage items
Things you need: Ask Yourself
- What can I sell in my garage?
- Where do I find garage sales, where I can sell my own products?
- How do I get the word out about my garage sale?
- Can I have a garage sale if my house isn’t close to traffic?
- What if it rains on the day of my garage sale?
- How do I collect payment for the items sold at the garage sale, who do I give it to?
- Can anyone use their garages for holding garage sales or does one need permission from their landlord or homeowners association?
- What can I do with items left behind at my garage sale?
- What if I want to start my own garage business?
- What kind of setup do I need for my garage business?
Questions you need to ask yourself before starting a Garage Business
- How will your business make money?
- What are your long-term goals for the business?
- How much start-up capital will you need (including expenses, such as rent, furniture, insurance, and other operating costs)?
- Do you have any special skills that might complement this venture (advertising sales experience, photography skills)?
- Have you looked into obtaining the necessary licenses and permits from state and local governments (insurance agent licenses; vendor’s licenses)?
- Who is your target market/customer base?
- What do you want people to say about your business when they think of it in ten years?
- What is the best way to ensure customer satisfaction with your product or service?
- Is there anything else that needs to be considered before starting a garage business?
- Are there any other questions I should ask myself before starting my own garage company?
Garage Business Startups Costs
A small business idea should be affordable, and depending on the industry, start-up costs can range from zero dollars to hundreds of thousands. For example, if you want to become an Uber driver then you need a car that meets the company’s requirements and has enough fuel in it for at least three months of driving without charging the battery.
Renting or Buying your building?
While the tax benefits of running your business out of your garage may not be as clear-cut as other forms of business, there are still plenty of benefits. Firstly, you won’t have any office rental expenses since you can use your own garage for office space. Plus, if you’re working from home or don’t want anyone outside of the family to know about what you’re up to, this is a great option. If you ever need an extra room for projects or storing inventory, garage space is available whenever and however much you need it. The downsides of having a garage-based business include the lack of windows which can be problematic for those who work best with natural light. There’s also the risk that someone could break into your property and vandalize or steal something – so make sure to invest in some security measures like cameras or alarms!
Tax benefits of starting a Garage Business
Small businesses are an essential part of the U.S. economy, and certain tax laws may encourage you to start one in your garage. There are drawbacks, however; like for any business, it’s critical that you do enough research before diving in and understanding what this decision means for your family’s financial future.
First of all, it’s worth noting that businesses operating out of a home are eligible for several tax breaks unavailable to their larger counterparts: saving on property taxes and not paying state or local sales taxes (like income taxes) can make a big difference!