Starting A Home-based Business
Home-based business is a $427 billion a year industry, greater than the pharmaceuticals, consumers goods, and food industries combined. This fast-growing segment of the economy has great appeal, but it also has its risks.
Many entrepreneurs enter the home-based business industry by accident. They see a way to make money and start small, expecting to expand when the business takes off. But when their business does become profitable, they may decide to stay small, at least in part because they like the advantages of basing their business at home.
Changes in family life can be the spark that starts a home business. A parent wants to be more available to the children. Or a change in job location by one partner means the other partner needs to find a new way to make money.
But the pros may outweigh the cons. consider these benefits: flexible schedule and location, integration of work and family life, no commuting, control of your own physical environment, unlimited income opportunities, and sky’s-the-limit creative possibilities. Operating a home-based business often yields increased personal and professional fulfillment through setting and accomplishing your own goals. And no one is looking over your shoulder directing your work.
On the other hand, when you work at home you can set your own hours and integrate your work life with your family life. You are your own boss, set your own rules. You make the decisions and you keep the money you make. No commuting costs, no business lunches, no business wardrobe, no endless meetings.
Get a copy of the company’s fully audited financial statement. What are the startup and maintenance costs? What responsibilities will you and the seller have to each other after you’ve invested? Compare the financials with other business opportunities and don’t fall for pressure: today’s offer will still be there tomorrow.
If you’re going to start your own business, you must have a business plan. Determine what form of legal ownership is best (sole proprietor, partnership, corporation). Are special licenses or permits required? Conduct a market analysis; does your prospective business fill a business need? To qualify for financing, you’ll have to show the startup costs and income opportunities.
Eight-five percent of home-based businesses are still in business after three years. It takes a lot of work, but the opportunity is there. Do your homework and take your time and you too can work where you live.
