It’s 2 hours past your shift and you’re still stuck in the office finishing a report, meeting a deadline or addressing an operational issue. You’re exhausted. You’re spending less and less time with your family. Or yes, you’re mostly at home with your family and as much as you enjoy taking care of your kids, you want to accomplish more.
You want to start your own business, be your own boss, find personal fulfillment and have the flexibility you need but you have no experience doing business, have limited resources and feel you lack the necessary skills. You’re worried about the financial risk and afraid to fail.
Do any of these sounded like you? Believe me, I get you. This was both me at different times of my life. I also had my fears and self-doubts. Well, I still do. I guess it’s a natural reaction in exploring an unknown territory or anything that is outside our comfort zone. If you’re wondering what’s stopping you? I have a special post for you.
Starting a business, especially for a first time entrepreneur, can indeed be daunting. Your number one consideration has always been the financial risk. Adding pressure to this is the lack of experience and knowledge. This is why a home business can help you get the superior startup that you need. Let me break it down for you.
1. Lower Startup Costs. Money is always a top consideration when starting a business. Rent advances and deposit is usually one that eats a big chunk off your budget. This is apart from the renovation costs of your space and the equipment and materials that go with it. A home-based business will give you savings that you can use for other business needs by simply utilizing a spare space at home. You can even consider the equipment and materials you already have access to at home. Now, is that a good deal?
2. Reduced Overhead Expenses. In my experience of running a brick and mortar business, the monthly rent expense has a huge impact on cash flow. It is a fixed monthly cost whether you make money or not. It’s where most, if not all, profits go for an often-lean startup years on top of salaries and wages.
With a home business, you get financial leverage.
You don’t actually have to pay for business rent as you are simply occupying space from your home. Your utilities such as electricity and communication (if you’re using a landline) expenses are charged with residential rates rather than a pricier commercial rate.
Since you have your business right at the comfort of your home, you also save money on transportation or gasoline, wear and tear on your car and meals. That’s a big business savings! The reduction on some of your fixed costs gives you pricing advantage in terms of flexibility on your pricing decisions as you don’t cover costs other competitors do.
While you don’t actually put out cash for rent and utilities as these are already part of your personal/home expense, I still think you should consider it in your business costing. I will tackle this soon in one of my blog posts.
3. Business Flexibility. Growing your business at home allows flexibility that is difficult when renting or buying commercial space. In an event when you downsize your business, your rent expense will be the same as it is based on your space area. The same goes when your business grows, you’ll be limited to the space you are on lease contract.
Working from home lets you hire more or fewer people. In short, a home-based business gives you the ability to easily scale up or scale-down your business.
4. Flexible Working Hours. With your business right at your doorstep, accessibility is a huge factor. It allows you to work at flexible hours. You can work first thing in the morning or late at night or when kids are sleeping.
This is a great advantage for entrepreneurs who are juggling both motherhood and business. You can simply work longer or shorter hours depending on your business needs. You may even pull off a long-week vacation with your family by simply booking transactions in advance and delivering them early.
Although working at home requires self-discipline, with distractions every now and then, the benefit of simply being home whenever you need to is a great plus for any mompreneur. It creates a semblance of balance in handling both business and family.
5. Higher productivity. A lot of time is wasted in commuting. One of the best benefits working at home is that your office is just a few steps away to your spare room. That gives you more time for revenue-producing activities.
Depending on your work style, you may opt to work at preferred hours of the day when you feel more productive.
6. Opportunity to test business ideas. Fear of failure, financial risk and self-doubt are the common barriers in starting a business. Starting a home business might just help address these.
With more than 50% of business startups that fail, if you put a lot of money for rentals and fixed costs right off the bat, then a startup failure can indeed be costly.
Having a home business allows you to test the viability of your new business.
Your ability to have a lower startup cost and operate at reduced overhead expenses in a home-based business minimizes your financial risk.
As a new entrepreneur or mompreneur, the many freedoms and flexibility a home business provides will help you grow your business at your own pace and be able to take care of both your business and family.
Above all else, you are able to check if your business is worth pursuing before investing a lot of money, time and resources.
This is why a home business will give you the superior startup.
Are you ready to take the plunge? Before you do, here are 3 tough questions you have to face.
Already started a home business? How was it? Share your story by leaving a comment.