Hard Times a Work-at-Home Boon?Starting a home-based business sounds pretty good right about now. Be sure to consider the complications. Bob Lankard |
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 [ 2009-10-25 ] |
Another considering a home-based business told me, “I could save money on business attire and transportation costs and avoid the stress of the daily commute.”
People who are starting up their own businesses are likely to do so from out of their homes.Some thinking this way confuse home-based employment with telecommuting.
One young man I counselled told of his uncle who he thought had a home-based business. The uncle was in the advertising business. He worked three days at home doing projects on his computer and e-mailing them to his home office. He would go to this home office 75 miles away two days per week.
The uncle was a telecommuter, he was not self-employed. He was still an employee. A home-based business does not have any other headquarters.
The number of home-based businesses is increasing. As an unemployment office counsellor, I noticed an increase in people seeking self-employment information as unemployment rates went up. Hard times spur entrepreneur ambitions.
Will this decade of hard times rival the 90s for home start-ups? Is working out of your home for you?
The Small business Administration suggests that anyone considering starting a home business ask themselves these questions:
-Can I switch from home responsibilities to business work?
- Do I have the self-discipline to maintain schedules?
-Can I deal with the isolation of working from home?
-Am I a self-starter?
- Does my home have the space for a business?
-Can I identify and describe the business I want to establish?
- Is there a demand for that product or service?
-Can I successfully run the business from home?
New home-based entrepreneurs learn their reasons for wanting a home business have a dark side. Betty, who wanted to cut child care costs, learned her young child did not understand the phrase, “Mommy is busy now.”
Fred, who started a home business because he hated office politics, learned home can be a lonely place. He also grumbled about having to travel to a local copy shop to use a machine that in his old office was just ten feet from his desk.
Does your home office have room to expand if the business succeeds? Will you want to have another person working in your home if the work is more than you can do alone?
One counselee came to me with his idea of a home-based business, “I’ve got an idea for a business I could do out of my home. A dog motel. People going away need to do something with their pets. People visiting here might want to leave their dog here for a day if they want to go somewhere Fido is not welcome.”
However, Arnie lived in a residential neighbourhood and barking dogs were not likely to be popular with the neighbours. The township also might have ordinances that might prohibit such a venture.
A homeowner cannot pursue any activity they choose as a home business. The Small Business Administration suggests considering:
Zoning regulations. A city or borough may limit what sort of business can be conducted from a residence.
Product restrictions. Most states would not permit a person to make fireworks in a home. A township may restrict the boarding of dogs.
The entrepreneur needs to consult an attorney. Also check with the department of labour to see if any laws and regulations apply.
A business may need to be registered or have a license.
Whatever home-based business you choose, it must be something you know how to do and like to do. A young man came to me with an idea of selling fishing worms from his garage. He lived near a stream. Under further questioning I learned he was only a casual fisherman. Customers will expect the home-based business owner to have expertise and enthusiasm for their business.
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