Work From Home Businesses
And so we come to the nitty-gritty - what business will you start?
For some people the answer to this may be obvious. If you are a skilled car mechanic, bookkeeper, photographer or gardener, for example, starting a business within your field of expertise is likely to offer you by far the best chances of satisfaction and success. If, however, you don't have a special skill or interest to base a business around, you will need to give this decision some careful thought.
There is a huge range of businesses you could run. They can be roughly divided into five main categories:
- Professional – Bookkeeper, computer programmer, graphic designer, accountant, architect, personal tutor, interior designer, etc.
- Creative - Writer, photographer, artist, desktop publisher, sculptor, etc.
- Service - Childminder, introduction agency proprietor, private investigator, proofreader, indexer, babysitter, upholsterer, carpet cleaner, etc.
- Craft - Woodworker, toy-maker, picture-framer, french polisher, jewellery-maker, and a range of other craft-based occupations.
- Physical - Window cleaner, gardener, personal fitness trainer, builder, odd-job (wo)man, car cleaner/valet, curtain-maker, etc.
Of course, any attempt to categorise in this way is somewhat arbitrary. Creative workers such as photographers and artists also have to use physical skills and provide a 'service' to their clients. Likewise, many people in businesses listed above under 'Service' quite reasonably regard themselves as professionals as well. Nevertheless, this basic division may help set you thinking about the range of businesses you could start and what type might suit you best.
The actual choice of business is entirely up to you. For many people, starting their own business based on skills acquired through working for an employer is both a logical and an attractive proposition. On the other hand, if you do not enjoy your work and wish to do something different to make a living, clearly you will need to look elsewhere for this.
A hobby or interest has provided the basis for many a successful business. Gardening, photography, craftwork and working as a tourist guide are all examples of businesses which could arise from this source. Of course, you may need to improve your skills and knowledge before you can ply your trade for money - but in most fields there are courses you can take which will (given a modicum of aptitude and ability on your part) bring you up to a professional standard.
Even if you don't have a hobby or interest you could develop into a business, there are still plenty of options open to you. Many of the businesses require basic skills which can be acquired relatively easily: household cleaning, babysitting, window cleaning, pet boarding, commission selling, renting a room, and so on. Or you may be able to learn a skill from scratch by taking a course. Interior design, financial advice work and many alternative therapies are examples of businesses you could start after completing a period of study and passing the relevant examinations. Both open learning and standard college courses in these and similar occupations are widely available. Though it must be said that if you choose this path you may have to wait a bit longer before you are able to get your business up and running - a period of years in some cases.
Buying a Franchise
One other option is to buy a franchise. Franchises are basically ready-made business formats. You pay a fee - which is often quite substantial - and in exchange are helped to set up in business using the franchisor's name and business method. Generally speaking, a franchise gives the right to exclusive use of the organisation's established name within a specified area.
The use of the organisation's name is an essential ingredient of any franchise, but in addition most franchises offer all or some of the following:
- Help in choosing premises
- Advice and assistance in setting up
- Training, if required
- Publicity material and general marketing support
- Operating methods for the business.
The price you pay is usually made up of an initial fee paid to the franchisor, plus a royalty - a specified percentage of your turnover or profits. There is usually also some loss of independence. The prices you can charge may be set by the franchisor, for example, and you may have to buy all your supplies from the franchisor or his nominated supplier.
Not all franchises are suitable for people wanting to set up home-based businesses - even if you wanted to, you would be highly unlikely to get planning permission to turn your home into a McDonalds' franchise. Many franchised businesses, however, (e.g. carpet cleaning, driving instruction and fast food catering) can perfectly well be operated in this way.
Buying a franchise, especially of a well-known and established company, can be expensive. Unless you have a large amount of capital you are likely to have to borrow to meet the cost. On the other hand, potential lenders may be more sympathetic if funds are going on a proven business concept. In any event, before entering into any franchise arrangement it is important to obtain professional advice from a solicitor or an accountant.
Other Considerations
Of course, personal preferences are not the only considerations that come into play when deciding what business idea to pursue. Other things you will need to consider include:
Your health - If your physical health is poor, it is likely to be a mistake starting a business which involves regular strenuous effort, e.g. window cleaning. You must be honest with yourself here. Yes, a healthy outdoor business might help build up your stamina - but if, due to ill-health (perhaps brought on by over-exertion), you keep letting your customers down, you will soon have no business left. If health is a factor, you may be better considering an indoor, office-based business, even if this is not your ideal preference.
Your aptitudes and abilities - Again, be honest with yourself here. You might like the idea of being a freelance photographer or writer, but have you really got what it takes to succeed in these competitive professions? For example, it would probably be a mistake to try to launch a career as a freelance writer if all your work has ever received is rejection slips. If appropriate (and possible), get your work appraised by an independent expert, ideally someone who is already successful in your chosen field.
This person should be able to give you objective feedback on your abilities and highlight any areas in which you need to improve. Do not rely on encouraging comments from friends and family: they will inevitably view your work through rose-tinted glasses, and in any event are unlikely to be aware of the standards required by professionals in your field. Of course, if you are really determined to make a go of your chosen occupation, you should not necessarily be deterred if you get an unfavourable response initially. This may, however, indicate that it could be wise to spend some extra time polishing and developing your skills before you start to rely on them for an income.
Your other commitments - For many people a major attraction of starting a home-based business is that they can combine earning a living with their other domestic commitments. But this in turn, of course, imposes restrictions on the type of business which you can run. If you need to be at home to look after young children or an elderly relative, for example, you cannot start a business which requires you to work in other people's houses much of the time, e.g. gardening or household cleaning. Similarly, you may only be able to work at certain times, or need to be free at short notice. These requirements will also have a major impact on the type of business you may be able to run.
The market - Whatever the type of business you decide to start, unless there is a large enough group of people willing to pay you for it your venture is doomed to failure. Realism, once again, is all-important here. You may have spent your whole life perfecting your skills in producing life-sized wood carvings of British waterfowl, but how many people will want to buy them and for what price? How will you bring your product or service to the attention of potential buyers - and will it be worth your while to do so for what they are prepared to pay? You must think long and carefully about your proposed business and how you will make money from it.
How much capital you have - Some businesses (e.g. manufacturing) require relatively large amounts of capital to get started, to pay for such things as special equipment, raw materials, stock, transportation, operating licences, advertising, and so on. Others (e.g. window cleaning) require very little in the way of capital expenditure. Bear in mind, however, that even in a low cost business you will still need to have sufficient funds to cover your needs and those of your family while your business is becoming established.
How much you need to earn - Some (a few) home-based businesses can bring in $100 or more an hour, while in others you will be fortunate to earn this amount in a day If your business is intended to provide a second income - to augment a pension, for example - then earnings may not matter especially to you. In this case you may simply wish to start a business doing what you enjoy, even if it will never bring in a fortune. By contrast, if your business will have to support a family (not to mention a mortgage, car, foreign holidays, school fees and so on) you will need to zero in on those opportunities which offer the best potential for such an income.
Whatever you decide to do, it is important that it meets all your requirements. If you start a business which is unsuitable, for whatever reason, you will not enjoy doing it. And if you cannot do it properly the business is most likely to fail, thus undermining your self-confidence, and perhaps preventing you from doing something else which you could do well.
If You Still Can't Decide...
It may be now that you have come down to a choice between two or three different ideas. Each has its attractions but also its drawbacks, and you really can't decide between them. What more can you do to help reach a decision?
One suggestion - which is a good idea even if you have already decided on a business - is to find out more about what each of your possible businesses would involve in practice. See if you can get part-time or temporary work in a similar field. If this proves impossible, speak to others already doing this type of job or go and watch them at work. Once you have more information, you are very likely to find yourself re-grading your business ideas against your list of requirements.
Depending on your proposed business, perhaps you could even try starting up in a small way yourself, working in your spare time initially without giving up your main job. This can provide an excellent opportunity to see how you enjoy doing the work, and may also give you a better idea of how much demand there is likely to be for your services.
Overall, the more information you can obtain about your proposed business before you decide to proceed, the better is the chance that it will meet your expectations and requirements.
