If you
think that running a business from home is an exciting idea, read on! Who
wouldn’t want to work flexible hours, be able to base work around your home life
and avoid expenditure on expensive office premises.
Although
a home-based business offers many advantages, there are pitfalls too for the
unaware.
These five tips will helps anyone who wants to start a home-based
business avoid the most common mistakes new business owners make.
Tip
One – Which Business is the Right One?
Starting
the right business is all about choosing what to sell and choosing the best
business structure to support the enterprise.
What to Sell?
Businesses
fail if there is no market for the product or service, so making sure the
markets exist is critical. Ask – is
there proof this will be a real business – are there reliable facts and figures
to support this?
Home-based
business owners can end up working a lot of hours (especially in the early
days) so make sure it’s an enjoyable business that doesn’t feel like work –
this is why so much advice talks about reviewing your hobbies and passion:
no-one minds working on the things they really enjoy.
The
world of business is competitive, so choosing a business which allows the new
owner to excel and be better than the competition is also important. Mediocrity
will not work.
Choose
a business that it’s easy to be passionate about, choose a business that has
proven existing market, and choose a business that is expanding and not
contracting.
Business Structure
There
are many ways of working and many ways to approach and structure a new
business. For example: limited company, self-employed, limited liability
partnership, franchising, licensing, VAT registration, PAYE – the list is long!
It’s
important to find the right advice by talking to people who have been through
the same start-up process and who also have the professional knowledge to guide
a new business owner through the regulations and complexities – in often words,
do they know what they’re talking about!
This
is about risk management – and for a new home-based business owner, starting a
new business is risky enough, without adding in the extra risks of no support.
Tip
Two – Work Environment
It’s
really important to make a work environment even for a home-based business.
It’s
not necessary to have dedicated office space, but it will be necessary to have
space where business admin activities can take place, a space where all
documents can be kept.
Depending
on the type of business, clients may arrive on the premises (the home) – and
thinking about the entrance that greets clients and the impression they leave
with can make the difference between keeping or losing clients.
All
businesses need equipment and supplies. A home-based business needs to work out
where supplies will be kept and how equipment will be stored. Sharing equipment
with family members may not be appropriate if the business depends on it.
Tip
Three – Marketing
Marketing
is vital for all businesses. Every home-based business owner has to go and find
new clients and new work at some point and the way to do that is through
marketing activity.
Marketing
should include online activities as well as offline and these should all be
planned to focus effort and complement each other. Typical marketing materials
include a website and online presence (for example, email address, domain name,
social media tools) as well as business cards and other stationery. All these
elements should support the brand of the new home-based business. However, be warned – just having a website
will not necessarily get your business – you need to get potential clients to
go to your website first!Professional brand design and print can make the difference between making the right and wrong impression, a home-based business that looks too homemade, is not always appealing!
Tip Four – Find the Right Support
All successful businesses need a team effort – even if the business is owned and run by one person.
Legal advice is needed for contracts, regulations and compliance. Insurance specialists need to understand the business to provide the right policies.
An accountant will be an asset – even if the business owner keeps meticulous records, accounting and tax regulations are complex and change frequently.
Marketing is vital for every business and support from an experienced and qualified marketing professional can make the difference between success and failure.
Knowing someone who can help out is not enough. A successful business is a team effort with the business owner working through the efforts of the professional team.
Tip
Five – Recognise and Deal with the Isolation
It can
be lonely running your own business, especially if the business is home-based.
The dream of regular and flexible hours will take some time to achieve. Working
odd hours to fit in around other demands (from work and from life) means
regularly meeting with colleagues is unlikely.
Marketing
activity can help overcome this. There are many networking opportunities
available for businesses of all sizes and networking is not just for finding
new business. Connecting with other people in a similar situation and facing
similar issues can really help.
Other
marketing activity can help overcome isolation too. Calling prospects, writing
letters, handing out leaflets and sending emails can all help, but it’s still one
way communication.
Choosing
a business with built-in support from people who have ‘been there before’ – and
are still actively involved in a similar business can be a vital way to
overcome the isolation.
Bonus
Tip No. 1
These
are some of the questions to ask before you start your new business:
1. Is there a market for this business,
backed-up by facts and figures?
2. Are you passionate / interested in the
business?
3. Is your chosen market or business field
a growing one?
4. If buying into a business, do the
franchisors know what they are talking about?
6. Do you have (or can you get) access to the business
equipment you need, e.g. PC, printer, stationery?
7. Is there comprehensive marketing and training and support
available?
8. When starting, will the training you receive ensure you will
get your business up and running quickly and successfully?
9. Do I have access to key ‘support experts’ to help me build my
business e.g. business and development, marketing, technical, tax and
accountancy, legal advice?
10. If there are technical skills involved, e.g. websites, spread sheets
and CRM systems is help available?
11. Can I pick up the phone or email and get instant help and
advice 24/7?
12. With the type of business I am interested in, will I be able
to get business insurance, e.g. public liability and employer’s liability.
Bonus
Tip No 2 – Choose Wisely
It’s
worth spending some time considering the tips listed above before starting a
home-based business. Choosing the right business opportunity to meet the needs
of a new business owner can mean the difference between failure and success.Peter and Julie Maxted set up the FREE Franchise ‘Pets Homes and Gardens’ to help and support people when running their own successful franchise businesses, giving the right support from the right people. To become part of this fantastic FREE Franchise just call Peter or Julie today on 01403 268282.
info@petshomesandgardens.co.uk
“When you love the work you are
doing life is no longer a chore, thank you Peter and Julie”- Julie and Sarah from Pets,
Homes and Gardens (Horley)