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Home Based Business
No commute; no boss breathing down your neck telling you what to do; no fixed schedule; not having to be worried about being laid off; leaving office politics and gossip behind; being with your kids. Working from home sounds wonderful, doesn't it? Take a good hard look before you make the jump from paid employee to self-employment.
There are some strong benefits of running your own home-based business, but they need to be weighed against some pretty harsh realities if you are to make an informed decision on whether a home-based business is truly right for you. These realities can be grouped into three main areas: personal, financial and situational.
PERSONAL
Commitment - you must be totally committed to making a success of your business. It is important to distinguish between commitment and just mere interest. Your enthusiasm and motivation may decrease over time if you are only interested in a business idea and not totally dedicated to the business idea. You must be committed to the business idea in order to succeed.
Risk-Taker
One of the benefits of owning your own business is that you don't have to answer to a boss. Of course, there is no one to fall back on if things go wrong. If you make a mistake or suffer a loss, you have to deal with it. You must be comfortable taking calculated risks. If security and stability are very important to you, having paid employment might be a better option.
Self Motivation
You must be able to motivate yourself to do what needs to be done, including the things you don't particularly like to do. No one is going to hold your hand and make you work on the business.
Self Discipline
You must also exercise personal discipline to ensure that the work gets done. There will be all kinds of distractions to tempt you from getting your work done. You will need self discipline and a schedule to make sure you stay on track with your home business.
Patience
Starting a home business is one thing, making a profit is quite another. You will not make a profit overnight, no matter what the infomercials tell you. Be prepared to be patient and frugal during the first few months of your new business.
Reasons
Your reasons for wanting to work at home will help keep your motivation level high. If your reasons are strong enough then you will find the resources to be successful in your home business.
Flexibility and Adaptability
In your home based business you will need to wear many hats. You won't have a secretary or assistant to delegate unpleasant tasks. Be prepared to learn new skills and take on new tasks.
Willing to Sacrifice
Be prepared to make sacrifices in terms of time and money to get your business up and running. You will need to put in long hours and most likely have to get by on less money than if you were working for someone else getting paid weekly.
Work Ethic
If you have a strong work ethic then the need for personal discipline and sacrifice will not be a surprise to you, since these are the core of a good work ethic.
Stress Management
Your entire business's success or failure will rest on your shoulders. That is a lot of responsibility. Consider how you handle stress now. Are there things you could be doing to reduce your stress or make it easier to handle the stress?
FINANCIAL
Do you have sufficient cash reserves to carry the business for a length of time. If not, maybe you should consider the possibility of starting your business on a part-time basis until you can start to show a profit.
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Retirement Planning
You need to think differently about your retirement plans when you are self-employed. Seek the advice of a qualified financial planner to set up an IRA or other retirement investment account.
Health Insurance
Say goodbye to the perks of paid employment such as low cost medical, dental, life and disability insurance. You will need to take out your own policies to cover these expenses.
Vacation
Well, you won't be getting paid to take a two week vacation anymore. If you own and operate an Internet business, you can always have a working vacation since you can take your business with you.
SITUATIONAL
Hard Work, Long Hours
Working for yourself will mean that you will have to work harder and put in longer hours than if you were working for someone else.
Interruptions
If you have children at home, be prepared for constant interruptions. You will need to set limits on the interruptions in order for your business to be successful. This also applies to spouses and other family members and friends.
Distractions
This is where self-discipline will be crucial if you are to avoid procrastination. It will be very easy to do a load of laundry or dust the house instead of doing that unpleasant business task you don't want to tackle.
Isolation and Loneliness
If you are used to the corporate world, enjoying lunches with your co-workers and stopping at each other desks for chats, then working at home can make you feel very isolated and lonely. Think of things that will help you overcome this feeling. Maybe meeting with your friends once a week for lunch, tuning in your favorite radio channel for background music or going for a walk.
There are many reasons to work from home and there are also many reasons why a home-based business may not be the right choice for you. Take a good hard look at the reasons why you want to start a business as well as your personal qualities and motivations. If your reasons and motivations for starting a business are strong enough, then go for it. If, however, you have any doubts about why you want to work from home, you might want to consider keeping your outside employment for a while longer.
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