Home-based Business: Working Where You Live
The landscape of the modern workplace continues to change. While the last century saw the rise of large employers, the 21st century is a time of diversification, marked by the growth of small and home-based businesses.
Why do people decide to work at home? Some budding entrepreneurs take setbacks such as layoffs or medical problems as opportunities to be independent and start their own businesses. A management consultant decides to open his own office after an illness in order to set his own schedule and reduce stress. A retired government worker doesn’t make enough money from her retirement, but doesn’t want a full-time job.
Some of the risks involved in running a home-based business are the same as for starting any business: no fringe benefits, no job security, start up costs, initial lack of steady income, and lots of long hours and hard work. Add to these the loss of home space, isolation, likelihood of interruptions, and the need for tremendous self-discipline and you’ve got the disadvantages of starting a home-based business.
No matter why they start a home-based business, these entrepreneurs face some unique work situations. On the negative side, a home-based business takes up space in the home, which could cause family conflicts. There are no fringe benefits — no sick time, vacation time, health benefits and no one to cover for you. There are startup costs and no financial stability at first. Working at home takes great personal discipline to keep to the task and not get distracted. And there’s no one to share the risks.
On the other hand, when you work at home you can set your own hours and integrate your work life with your family life. You are your own boss, set your own rules. You make the decisions and you keep the money you make. No commuting costs, no business lunches, no business wardrobe, no endless meetings.
Get a copy of the company’s fully audited financial statement. What are the startup and maintenance costs? What responsibilities will you and the seller have to each other after you’ve invested? Compare the financials with other business opportunities and don’t fall for pressure: today’s offer will still be there tomorrow.
There are plenty of options for buying into a business. The internet is full of such opportunities. There is online business that offers free startup courses to interested people. Many of the internet businesses are perfectly legitimate, but some of them are scams. It’s important to be able to tell the good ones from the bad. Ask about their earnings claims. Get names of people who have already bought into the business and ask them for their experience with the company. Have their earnings matched or exceeded the stated earnings claims? Check with government regulations and consumer and business organizations to see if there are any black marks against this company.
When you’re flying solo don’t hesitate to get help from business people who have other skills you need to succeed, like lawyers, accountants, and marketing experts. Whether you buy into an established business opportunity or develop your own concept, remember that the secret to building a successful home-based business is to center it on your own skills.
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