Choosing your home based business idea, unfortunately is not as simple as choosing the one you like the sounds of, its something you like doing or you like the freedom it promises you. So once you have a list of potential home based business ideas set aside a reasonable amount of time to assess each on individually and consider these important factors:
When you are choosing a business idea, consider where your talents lie. For example if you are a virtual assistant there is no point trying to start a bookkeeping business from home if you don’t have experience in accounting – you’ll have to invest time and money in learning a new trade, understand how the bookkeeping market works and how to price, after which you may decide that bookkeeping was not for you and that you prefer to remain a virtual assistant.
Does it Make Money
For each of the home based business ideas you have shortlisted, review the market in which they operate impartially asking yourself:
- Some markets are fiercely competitive, so will it make it difficult for you to enter that market and make you first sales?
- Will you earn enough profit in that business to sustain the living you need or desire?
- Will you be able to generate multiple sources of income or repeat business from your business idea?
You’d be surprised how many businesses there are that go bust because they simply don’t make enough margin to generate the cashflow they need to grow and survive.
Start Up Costs
Some businesses cost more to start than others. For example a dog grooming business will cost more to set up than a dog sitting business because you will need to buy equipment to wash, cut and dry your customers pooches. That being said, starting as a dog sitter could give you the funds your need to start your dog grooming business.
Think about where you would see yourself in a perfect world, what costs your would need to start that perfect business and then looks at clever ways you can earn money in the short term to achieve your long term goals.
Legal Restrictions & Regulations
Just because you operate a home based business, it does not mean you will not face legal restrictions and regulations that you need to meet in order to trade. If you want to start a bakery business from home there will be food hygiene standards and food packaging requirements that you need to adhere to before you sell your cakes to the public. When selecting the perfect home based business for yourself research which rules and regulations will affect you and consider the cost and time involved in meeting them before you can even make your first sale!
Whether You Can Run a Business Effectively From Your Home
Starting a home base business may make your life easy – no travel, no office overheads and the ability to set your own work schedule. But some businesses may not function well in a home environment so consider your own circumstances and the affect on each of the home base business ideas you have on your list. For example if you have small children, setting up as a home based massage therapist in the evenings may not create the right environment for your clients. Think about the environment you need to create to build a successful business at home for yourself.