Are you thinking of starting a home-based business? Do you ever find that when you talk about it to friends and family, you keep qualifying it with the word “just”? Many of the mistakes that people make when it comes to starting a home-based business stem from them or their families treating it as a kind of afterthought. The issues below are common ones that arise in this situation.
Not Enough Money
Many people may think of a home-based business as something that you start on the side with whatever resources you have around. In fact, success may depend on making a substantial investment in equipment or other resources, and you may also want a cushion to help you through some of the difficult early days. There are plenty of ways you can do this, including dipping into your savings or getting a business loan. You could also sell your life insurance policy. By cashing in your insurance, it can bring in a significant amount of money. You can find out more about the process and get an estimate of your policy's value.
Not Enough Paperwork
Almost no one likes paperwork, but it's best to get this out of the way early on than to try to fix things later. Find out whether you need any licenses or certifications before you get started. If the name of your company is different from your own name, you might need to file a DBA, which stands for doing business as. You should also look into local zoning requirements and make sure that you aren't violating them. Are there any local taxes you need to be aware of? Hiring an accountant, a bookkeeper or both is another way that you can make your life easier in the long run. Even if you are the sole proprietor and you are doing business under your own name, you may want to set up a separate business bank account to make it easier to track your work-related income and expenses.
Not Enough Boundaries
When you're home all day, the dog needs walking, the cat wants to join in on your video conferences and there are probably a few chores that your spouse or kids expect you to fit in during the work day, like doing a few loads of laundry or prepping dinner. Friends might wonder why you can't meet them for a mid-afternoon coffee or a walk in the park. If you're trying to work while your family is home, it might be chaos. If you feel like others are not respecting your boundaries and that they do not seem to think your home-based business is a regular job like any other, you may be right. It can be hard to train your family and friends into respecting this time even though they wouldn't have dreamed of barging into your old workplace and making the same demands. What makes this especially hard is that you might feel like you are being mean or selfish when you put them off, but the only way to manage this is to be firm and consistent.
