Disadvantages of Working From Home

Working from home sounds great. You do not have to get up and get dressed and race out of the house. You do not have to worry about traffic, delays or the weather. You can set your own hours, and you get to be your own boss. But, there are a lot of disadvantages to working from home and owning your own business that many people do not consider. They start their company and realize that it is not what they were expecting.

People who do work from home never get to leave the office. They often have trouble being able to separate the two. Depending on the business that you plan on having you may discover that you are getting calls at strange hours or that you end up working twice as much as you would with a nine to five job, or working for someone else. Clients and customers who realise that you do work from home often think that you are available any time day or night.

There is also a lot of pressure in owning your business that people seem to forget. In many cases you can not count on getting a regular pay check. And, there is no guarantee as to how much or how often that check will come. Will you be able to adjust to this type of financial arrangement?

Owning your own company often means that there is often nothing to fall back on if you run into problems. If you buy a new piece of equipment, or software it is up to you to work out problems and solutions. There is no one else to ask for help.

A person who works from home also has to have a lot of self discipline. It is very easy when working from home to get interrupted or distracted. There is no separation between the two and it is all to easy to stop for coffee with a friend who just stops by or to get distracted by something in the house that may require attention. It is very important to be the type of person who can sit down and ignore what is going on elsewhere.

Depending on the type of business that you are considering there may not be a lot of social contact. If you are operating an on-line business for example, you may find that you do not actually see other people for days, or until you leave the house. Many people discover that thy actually miss not having direct communication with others even if it is just around the water cooler.

Before you go jumping into a home business look at what type or person you are. Can you handle the pressure of not having a regular pay check? Can you solve problems on your own? Will you miss the people? Before jumping into your own business consider these things carefully.

The Importance of Having a Business Plan

The concept of owning and operating a home based business has a great number of appealing qualities. You do not have to rush out every day to get to work, you can select when and how much you want to work and you are your own boss. However, before you do decide to open one of these ventures it is extremely important to set up a good business plan.

People who start these often companies do not plan for many of the unexpected costs that do come up and they find themselves in financial difficulties very quickly. When setting up your business plan it is essential that you carefully outline in as much detail as possible everything that your business is going to require.

Take a careful look at all the equipment you will need. You will want to include all the big items that you are going to require i.e. a computer, fax machine printer etc. but, do not for forget to take into account that you are going to have to purchase all your own small business supplies as well. Pen, pencils staplers, all add up quickly are often forgotten or are over looked when people are doing their planning. You may have to install a second phone line so there might be hook-up charges or other expenses involved.

You should also take a look at which aspects of the business you are going to do yourself and which of any services you are going to have to contract out. Who will handle the accounting? Are you going to do it yourself or are you planning on hiring it out? If you are doing it yourself will you need to purchase additional software or books?

What about advertising costs. Are you able to do your own? What kind of advertising do you intend to do? Will you be putting ads in the local paper, posting flyers, using the yellow pages or doing it on-line. Even if you are simply putting up local flyers what are the costs of printing, paper etc.?

You are also going to want to make sure that you put money aside for unexpected emergencies. What if the computer breaks down? Or you get a virus? Will you be able to fix the situation or will you find yourself with a large unexpected repair bill?

The more details that you are able to put into your plan the better. Write things down and keep careful records. Many people who start their own companies go under simply because they did not do enough planning at the beginning of their operation.

Setting up the Home Office

Once you have decided to go ahead and open your own home based business you are going to have to look at where you are actually going to work. This area is going to be your office so it is essential that you take into account a variety of things. You want to be both comfortable and productive so you need to set things up accordingly.

What do you need for your business? How much space and equipment are you going to require? Do you need an internet connection, extra phone lines? What kind of furniture if any will you require? Write up a detailed list of all the things that you are going to require and plan the space that you have available to you.

Ideally, you will be able to have a separate area or room away from the rest of the family where you can set up and leave your things. You want to be in an area that will provide you with the least amount of distractions and noise. It is important that the rest of the family know that this is your work area and that they are not to disturb things.

If a separate room is not an option consider getting a portable partition. This will help to separate your office space from the rest of the house. It is also a good way of letting the family know that you are working and do not want to be disturbed.

If there are children in the home you may want to get a second line put in that is just for the business. At the very least you will probably want to have an answering machine or call display.

You also want to make sure that you will be comfortable working in that space. The furniture that you choose should not only reflect the business but be comfortable. The space where you intend to work should be a well ventilated area and has enough light. Do not just pick a remote corner of the house.

By properly setting up your own personal “office” space you will be more productive. This is especially true if you are able to provide yourself with a room or an area that is fixed and stable rather than trying to work at the kitchen table. Also by having your own area, even though you are at home, it will help you to mentally separate “work” home.

Advantages to Having a Home Business

In today’s modern world most families require two incomes. Because of this more and more couples are looking into the possibility of operating and owning their own home business. If you have never considered this you should look at all the advantages that can come from having a business that is operated from your own home.

Home based businesses are especially appealing to parents who require a second income but do not want to have their children shipped off to daycare. By operating a home based business you can have the freedom to choose your own hours and to plan your own working schedule around your children rather than trying to plan your children around your work.

You can also take advantage of using your home as a tax deduction. Tax deductions and benefits will very depending on which country, state or province you live in but with a bit of research or a good accountant many people are surprised at the amount of things that they are allowed to claim. Some people are able to claim to everything form heat to actual square footage of their house on their income tax forms.

A lot of people also find the thought of not having to commute to work very attractive. You do not have to get up and rush out of the house. Nor do you have to worry about construction, weather or traffic jams while you are trying to get to your job.

People who are operating their own home based businesses are also able to save money because they are not concerned with ensuring that they have proper work wear. There is no need to go out and get expensive suits or ties, nor do you have to worry about safety clothes or equipment.

Another great factor about having a home based business is that families often find they can manage with only one car. If the parent working outside the home is able to take advantage of the public transportation system or by car pooling then the other parent is free to have the vehicle all day. Alternatively if the parent at home does not need the car they can do the household errands after their spouses working hours.

A home based business is one of the best ways of allowing a family to be a family and still have the benefits of a two family income.

Time Management Considerations

One of the most difficult parts about owning your own company is trying to mange your time. People who do start up their own businesses often fail to take a realistic look at the time that will be involved. They plan the actual time to do their “work” but fail to realize the other factors that they are going to have to do to keep their business operating.

Who will take care of the accounting? If you are going to have someone else take care of the books, you will still have to spend time keeping track of the day to day operations. And if you are planning on doing it yourself have you allotted yourself time each day or week to get it all done?

Depending on the type of business that you plan on having you may be required to do your own advertising. Even if you are simply planning to post flyers around the neighbour hood , you have to look at time involved in printing, in getting them posted and replaced when necessary.

Another thing that people who are trying to work from home discover is that they are constantly being interrupted. You are not at ”the office” or “at work” so quite often friends and family do not realise that you are busy. It is important to let these people know that you are in fact working. You have to be very clear that this is your work time and it is not a good time for personal calls or coffee.

You also have to remember that you are going to need time for yourself. People who work from home often have difficulties separating the business from their down time. It is important to remember that you do need breaks and time for a social life.

When you are planning your work week or month, these types of activities all need to be accounted for. If you do not consider all these things carefully beforehand , you may find yourself spending hours and hours working but actually getting very little done.

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