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YahooIt is the dream of many people work from home, but starting a home based business requires a bit of planning and forethought. Some envision only the positive aspects of working independently, such as flexibility in scheduling, savings on wardrobe, and being able to avoid rush hour traffic, but working from home comes with its own challenges.
Homeworkers are often isolated, may have inconsistent paychecks, and for those who have young children, the idea that they would not need professional childcare because they would be at home may be quickly proven wrong. Depending on the type of home based business chosen, the noise and distraction from family members may make it difficult to work efficiently or present a professional demeanor.
Know yourself. Working from home requires a great deal of motivation and discipline. Those who are prone to procrastination or cannot work without direct supervision may not be cut out for home based businesses. Additionally, people who thrive on social interaction may find that they miss their old way of life once they are away from the hustle and bustle of the traditional workplace, so it’s important that you take stock of your personality traits and working style before you begin a home based business.
Crunch the numbers. Most new businesses take a while to get off the ground and turn a reasonable profit, so before jumping in, be sure that you are in a position to be able to afford it. Many people who start home businesses begin them on a part-time basis while holding on to their existing jobs for financial security. This method may be a bit exhausting, but it does buy time to see if the business venture will work before you change your whole life for it.
Look before you leap. The temptation to leave the traditional workplace behind in favor of being your own boss can be hard to resist, but take a bit of time to think things through before investing your time and money in to a home based business. Working from home can be a wonderful experience, but you must do your homework. Be sure that you choose a business where your product or services are in demand, and if you are planning to work as an independent contractor for an existing company, make certain that you understand all of the details about what is expected of you.
Check to see if telecommuting is possible. One of the best ways to work at home while maintaining a stable income is to ask your current employer of you would be able to do some or all of your work from your own home. Depending on the nature of your job, you may be able to arrange it so that you rarely, if ever, need to work from their offices. Not all employers are open to such arrangements, but hey, it can’t hurt to ask!
Make a list—and check it twice. Business start up costs, as well as ongoing needs, can be considerable, so be sure that you put together a comprehensive list of things that you need to take care of, especially if you plan to apply for and grants of loans. If you do hope to secure financial assistance, you’ll need a business plan which outlines your expected expenditures. Some of the most commonly overlooked items include transportation costs (especially important if you’ll be delivering goods), taxes, and insurance.
Beware of work-at-home scams. There is an old saying that applies itself well to work-at-home opportunities: “If it sounds too good to be true, it probably is.” There are a lot of unscrupulous people who prey on those looking for the opportunity to work from home, so be careful.
There are legitimate companies who hire homeworkers as employees and there are also plenty of companies who hire independent contractors to perform work from their homes or offices, but not all of the ads you see online or in your local newspaper are promoting such opportunities. Ads that promise large incomes for stuffing envelopes, assembling craft products, or typing from home are almost always scams. Be wary of companies who ask you to pay them for information of start-up supplies. You are their customer, not their employee!
Consider joining a well-established company. Going it alone in the business world can be a bit risky. All of the expenses are yours, and there are never any guarantees that you’ll turn a profit. There are a number of well-known companies that count on home-based business professionals to represent their company, especially in sales positions. Selling for one of these companies can be a great way to break into self-employment—they provide brand recognition, offer support and advice, and even make it easy to accept credit card payments, something some independent sellers are wary to do.
While I’m not able to recommend specific business opportunities, I’ll bet that you can think of a handful of reliable and well-established companies that sell their products through a network of independent distributors, who sell to friends, family, neighbors, and coworkers. You have probably even bought some of these products yourself, helping others to build their own home-based businesses.
Search for grants or small business loans. Small business owners often qualify for financial assistance, so be sure to search for available funding. The Small Business Administration (SBA) can be a great source of information and support as you strive to begin and grow your home based business. If you are in United States, Puerto Rico, the U. S. Virgin Islands, or Guam, the SBA may be able to help you find the funding you need to make your business a success.
Make sure your paperwork is in order. Unlike when you work for someone else, owners of home based businesses must keep all of their own tax and other financial records. Begin keeping detailed files from the start, including al of your expenses as well as your income. If you are not familiar with basic bookkeeping, you may want to consult with an accountant or business tax specialist, who can advise you on the specifics.
Breathe. Beginning a new business is an exciting thing and it can be easy to get so carried away that you dedicate your every waking moment to the endeavor. Being self-employed does require a great deal of energy and dedication, but be sure to take at least some time every day to stop, breathe, and relax. Remember, you likely chose this path in order to improve the quality of your life, not to make it even more stressful!
