A home based business can be one of the most rewarding ways to make a living- if you do your homework, and set the business up to succeed. The average person thinks a business at home would be easy and convenient. Well, convenient it can be, easy it is usually not. You can however avoid the common mistakes of most home based business ventures by doing your homework before you start the business.
The 1st part of having a good home business is finding a product that people need, so that you will be able to sell this product to your target market. If the customer won't pay a decent price for your widget, you won't move any product. You will probably get bored and most of all you won't be making any profit. So you must have a product that will sell well if you expect to have a thriving business.
Secondly, from where in your home do you expect to run your business? It will take space to operate a business, so using the living room as your home office means that you're essentially kicking your family out of it. Try to estimate the amount of space you'll need, and make sure you settle your business in a location that's good for you, your family, and your clients. This is probably an area where you'll need to consult a legal expert to fill you in on tax laws. How much space can you deduct for business use? Your local zoning board will have information on the permits you need to make such deductions.
Now you have your permits and you know what you are going to sell, next make sure you know what you must charge to make a profit. Many home based business owners make the mistake of thinking they don't have much overhead so they price the product on the low side. Make a list of everything from a percentage of the mortgage payment and taxes to the cost of the hour you take to clean the office once every few weeks. Figure in utilities (don't forget the extra phone, fax and internet services you will need), furnishings, office supplies and equipment, even the cost of maintaining your drive way if clients will park there. Usually, the over head in a home based business is higher than you think. Price accordingly.
Now that you're ready to venture into the free market, you need to decide upon business hours. You might think, "I work at home! I can work whatever hours I want!" However, you have to be accessible for clients who are relying on you to be there during regular daytime hours. You need to have a set schedule for your customers' sake. They have to know when they can catch you in the office and when they'll just get sent to voicemail.
Since you're working from home, you have another consideration and that is your family. You have to set clear boundaries and let them know that even though you're at home, it doesn't mean you're available. Working in your home office is just like working in an office building downtown. You can't take a break whenever you feel like it, and your family needs to understand and respect that. Some people create a separated entrance to their home office to separate the rest of the house from the home office. Whatever method you use, make sure that you and your family are on the same page.
Last, you need to look into the future and plan for the time when your expanding business grows larger than your current home office. Will you hire an assistant to help you do administrative work? How do you plan to accommodate growth? Where is a good location to move to when you need more space and how will you handle the transition? Keep those thoughts in the back of your mind, because eventually they will become a reality. It's okay if that part of your plan is a little fuzzy right now - you can work out all the details when the day arrives.
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