How To Start a Virtual Assistant Business in Five Steps

A business plan helps you organize your business. You don’t need to make a formal plan unless you are looking for a bank loan or line of credit. Still, your business plan should set forth your business description, research on competitors, customer demographics, projected revenue and expenses, and marketing plan.

To narrow the scope of your business, evaluate your skill set to decide what services to offer potential clients. Common administrative services are:

• Bill paying and invoicing

• Bookkeeping

• Calendar management

• Customer support

• Data entry

• Email management

• Email marketing

• Project management

• Social media account management and content creation

• Transcription services

You could also offer specialized services such as website or graphic design.

To determine your hourly rate, compare how other virtual assistant businesses set their pricing. You may have specific certifications or skills for which you can charge more.

Figure out your upfront costs to fund your business. Even if you are working from home, you will need at least a space to work, a phone, and an internet connection. Budget for advertising and marketing and whatever supplies you may need to do your job.

You can find online resources and templates for making a business plan or contact your local U.S. Small Business Administration (SBA) office for help.

Many entrepreneurs start their business as a sole proprietorship. A sole proprietorship allows a business owner to enter the business income or losses on their personal income tax return. However, any liabilities against the business can put the business owner’s personal assets at risk. Many people choose to form a limited liability company (LLC), which is a business entity that separates their business assets and liabilities from their personal assets. If someone sues the business, they can only go after the assets in the business. An LLC is similar to a sole proprietorship in terms of tax treatment so that a business owner can report their income or loss on their personal income tax return.

Other business structures exist, such as a corporation or limited partnership; however, these have more burdensome requirements. LLCs are more popular because they require less paperwork to create and maintain.

It is easy to set up an LLC by contacting your Secretary of State’s office or using online business formation services. The first step to forming your LLC is to choose a business name. You will want your name to be unique and represent your brand. You will also need a registered agent or office in the state where you form your LLC. If you live in that state, you can be your own registered agent.

After you set up your business entity, you will want to open a bank account for your business. Keep all business transactions in your business name and your business bank account, and don’t commingle with your personal bank accounts, or you risk having your personal assets considered business assets. To open a bank account, first, you apply for an Employer Identification Number (EIN) with the IRS. This number is your business’s identification.

You can also set up an account to receive credit card payments for your services.

Even when you are a home-based business, you must have the required licenses and permits to operate. For example, your state may require a business license. Your city or town may also issue permits or have zoning requirements. Finally, if you belong to a homeowner’s association (HOA), check their rules about operating a home-based business.

An additional step is to determine if you need business insurance for your operations. Although you may work from home, you may want to check that your equipment is insured for property damage or theft.

Now you are in business! But wait, you need your first client.

Advertise your services on social media platforms and job posting boards such as LinkedIn. Create a business website so potential clients can find you. Offer your services to your community through Facebook Groups and the like. Be sure to highlight what makes your services better than those of your competition.