Taking on a Small Business can be a daunting exercise. Operating a Home Based Business can have a big impact on family life. As a method for creating wealth, your actions will govern your success in one of the most popular small business start up scenarios.
There are many business owners who have started successful home based businesses. Working from home allows the opportunity to work on your business more then in your business. Some other reasons for starting a business from home are;
- The home based business reduces the financial risks of starting out in business.
- Only require small premises or office.
- Running a business from home particularly appeals to parents of young children.
- Some run a business to provide a second family income.
- The availability of affordable mobile technologies is another factor influencing people to work from home.
Family comes First
Whether or not family are involved directly in the business, working from home impacts their lives. Recognize that your family needs space and privacy and consider how a home based business will affect their comfort level.
Discuss the location of business activities, the times of operation (start and finish) and where client meetings will be held. Some of the best methods in assisting your families acceptance of the home based business are:
- Have a uniform, even if it is just a shirt with a logo.
- Go out the front door of your home, walk around the block and return directly to your home based business dedicated workspace.
- Have fixed lunch breaks, allowing your family to join you if they wish.
- Make it clear that during your working hours you are not to be interrupted by casual visitors.
Starting a home based business will cause lifestyle changes for family and friends, talk it through with them and agree on a system that works for everyone.
If family members will be involved in the business, formalize this relationship. Think through the implications on relationships of running a business from home .
Benefits of a Home based Business
Running a business from home has its benefits:
- Lower overheads – the home based option offers lower establishment costs, namely there is no commercial lease.
- Lower risk – working from home eliminates much risk in the early stages of the business.
- In some cases, working from home can be treated as the incubation period of the business.
- Flexibility – home business owners set their own hours, can work broken shifts and be flexible to customers needs.
- Convenience – all the conveniences of home and work are at hand.
Challenges of a Home Based Business
Like everything in creating wealth, what you get out of it is in line with what you put into it. Some of the challenges are;
- Isolation – on both a personal and professional level. Interaction that exists in other working environments cannot be matched at home and is hard to adapt to. Those from corporate backgrounds, in particular, face a significant adjustment.
- Distractions – at any workplace there are distractions but consider all the additional ones that may apply at home. Things like household chores, children, relatives, pets, visitors and the television are obvious examples.
- Site limitations – the ideal is to design the site and facilities to suit the business requirement. But this is not always possible for businesses operating from home. The need to comply with local government regulations like parking, advertising, employment and manufacturing can be limiting.
- Loss of guaranteed income flow – being able to retain the profits is a definite advantage of running a business, the downside is that it can often take time to build up a profitable business and cash flow can be erratic at start up. Work out whether the business will generate sufficient earnings. If not, consider retaining existing employment during the development of the business.
Do you know what the most exciting thing is about the home based business journey? Well take some time out and write a list, send me your best reason for running a home based business with a comment below. Lets see how big a list we can come up with.
Go ahead take that single step.
Creating wealth, The Journey.