You are into Home business to make money, perhaps with a dream of getting it by enjoying all the conveniences of sitting at home. But there are several things that you should be clear about before starting a home business and becoming successful in it.
Consider the following points carefully:
The best investment you make must be YOU
In home business, YOU are the prime investment. You have to build up the business and sustain it mostly by virtue of your skills and expertise. You must have the correct perception about your capabilities versus the demand in the market and you should not plunge in based on hopes rather than reality.
Do not plan to have a large capital base
It might be wonderful if you could have the latest computers and gadgets, the best possible machinery and equipment to run your business and a fleet of vehicles to do your deliveries. But until you earn really enough to invest on these on your own, you will be better off with cheaper and less glamorous alternatives, by sub-contracting support services and hire-purchasing equipment and machinery.
Be minimal on hired man-power
Until you make reasonable money and afford to have additional hands, be prepared to do the drudgery yourself. If you are the bossy type who thinks work is to be done only by others, then better watch out.
Do not dream of making millions
Home business will mostly be with less investment, be less risky and with less ‘plinth area’ and consequently with less scope for making any big money. Not everybody can start a venture in the unused garage and become the owner of a billion dollar enterprise like Steve Jobs. Your goals should be related to your line of activity, your investment and the potential customer base. It should be linked to the amount of time you can safely spend on your business.
If your goal is to supplement your family income rather than making it only source of income, you are safe
If you are the only bread-winner in the family or if you do you have a spouse who does not have independent income, then it is too risky to venture into your home business. If you do not have the financial strength to withstand the possible loss or absence of revenue during the initial periods of business, then it is a road with huge pot-holes. If you think you can manage everything with borrowed money, you won’t be able to set any reasonable goal of growth or income.
Be prepared for a low-profile, less glamorous outfit
Home business is mostly a low profile, adventure-less, glamor-less way of life. Until you are stabilized, you can not afford costly parties at 5-star beach resorts to your customers, huge advertisements in newspapers etc. If you are the type who worked in a corporate business house where you had seen extravaganza and you want to imitate them in your home business, you will soon go bankrupt.
If you are the type who can not sit in one place continuously for 15 minutes, who loves traveling, hitch-hiking or globe trotting, home business is not for you.
Home business should not leave your home’ behind
If you are a woman and if you have not understood that home business means you have to take care of the regular family chores as efficiently as you were doing earlier in addition to catering effectively to your business pressures too, then you will be left with more mental tensions and less profitable business. You have to have clear cut allocation of your time to your home affairs and your time to the business hours. This balancing should be well planned by discussing with your family members and seeking their co-operation.
Have some rudimentary knowledge about accounting and taxes
In a home business, at least to start with, you have to mantle all roles related to production, marketing, public relations and accounting. You must have some basic capacity to plan and manage cash flow, credits, debits and bank transactions. But one area where it is better to pay money and use specialist services/ consultancy is in the area of Taxes. It may not be worth if you waste your time and effort on this slippery area. At least make use of the services of Tax consultants to get the necessary preliminary registrations done at the appropriate Government Departments, get the necessary forms filled and submitted, and get clear-cut guidelines on the types of taxes you have to pay, the exemptions you are eligible for specific to the type of business you are doing etc.
Running a home business may not be a cake walk for all. It requires a different outlook towards life, a different way of goal setting, if you really want to succeed in it.