Why a home-based business? This is usually the natural progression of a bootstrapping entrepreneur who has started his business part-time. Is a home-based business right for you? Here are some factors to help you decide..
1. Is your home location ideal for your business?
Location, location, location. Is your business suitable for your home's location? There are some businesses that cannot start from home and instead, will need an actual storefront. Other factors to consider are the restrictions in your neighborhood. If a huge truck or other heavy machinery needs to come in every Wednesday and Friday, will your neighbors mind? Is it even allowed?
2. Will your family be supportive?
Make sure your spouse and kids understand that while you are working at home, you are not to be disturbed. Keeping your business and personal life separate is a challenge for anyone embarking on a home-based business. Your family must learn to respect your place of business and your working hours. They should know that this is serious and may very well be your main source of income. If your family cannot adjust, maybe getting an actual office is more right for you/
3. Are you highly disciplined and motivated?
Are you the type of person who finds it difficult to sit at a desk and work when your warm bed is calling out to you from the other room? You may think that you are finally free of the daily grind just because you've left the office but welcome to the real world, my friend. Owning a business full-time requires more hours than a 9-to-5 job. You don't even have the luxury of a lunch break sometimes!
This is why a home-based business requires a lot of disciple and motivation. If you don't have both, you might be better off getting an office space with a reasonable price. Or maybe work at a quiet cafe just so you can be free of all the distractions.
4. Can you multitask?
A home-based business requires you to juggle a multitude of tasks, especially if you can't afford to hire outside help. You should be prepared to act as an accountant, a secretary, a clerk, a salesperson and a manager all at once.
5. Can you work on your own?
Some people work better as a team while some people are very comfortable doing everything by themselves. If you are the latter, then a home-based business may indeed be perfect for you. If, however, you are motivated by having other people around you working towards a common goal, you may find it hard starting a home-based business. You can counteract this tendency by choosing a great team of people that complement your skills to be part of your business venture.
Moving from a part-time entrepreneur to a full-time one with a home-based business is not an easy decision to make. Aside from the psychological factors, there are things such as financials to consider. Can your current part-time business sustain your lifestyle? Will it make enough money to cover everything and does it have potential to be so much more? These are some things to consider in light of the current financial crisis.
Photo Credit: elsie