Starting a new business can be both exciting and challenging.
Research has shown that a huge percentage of new businesses tend to fail in their first year. In Singapore, it has become increasingly popular to have a business at home. Some of the benefits of setting up a home business are given below:
Convenient working hours:
Having a business at home enables the business owner to have very flexible working hours. There is no need to stick to the normal working hours of 8am to 5pm. With a home business, work can be done through the night or early in the morning. This could translate into better output. The business owner will also have some extra time to attend to other important issues such as spending quality time with family members.
Saves time and costs of commuting:
Having a home business eliminates the whole cost of commuting. The business owner is also able to save all the time that would have been spent on the road. This extra time can be spent in building the business.
Less overhead costs:
A home business does not incur the same overhead costs as a business in a rented office. The owner of a home business will avoid the huge cost of business rent. There are also savings on costs such as utilities and personnel expenses. These lower costs will enable the business owner to offer more competitive prices.
Easy to start:
Home business owners have the benefit of being able to start the business with very little capital. There is no need to raise three months’ rent deposit as would be the case if the business was in a rented office. The home business will only need sufficient space. This has encouraged many upcoming entrepreneurs to start their businesses easily from the comfort of their home.
After establishing a home business, the following tips should be considered to ensure that it succeeds:
1. Have a plan:
All entrepreneurs should have a business plan, whether they choose to have a home business or a rented office. It has been said that failing to plan is planning to fail. It is important for the business owner to write down a plan which includes the assets required, the target clientele, estimated budget costs, market research on competitors, projected sales, and any other issues that surround the establishment of the business.
2. Set up a formal office at home:
It is important to set up a simple office at home which is both formal and comfortable. There should be a desk and chair in place, as well as a workstation which will give the business owner the feeling of being at work. It will encourage him or her to be focused during working hours and avoid all distractions. If there is no formal office at home, it will be easier to get distracted and get involved in home activities.
3. Have a strict schedule:
Having a work schedule is very important. It helps the business owner to stick to the plan for the day. Without a work schedule, it will be easy to procrastinate or totally omit some tasks. The entrepreneur should determine wake up at a certain time daily and complete the tasks as scheduled. If the plan is not followed, there is the risk of falling behind in the delivery of products or services. This will eventually lead to a reduction in sales and profits.
4. Be organised:
Setting up a home business usually means that the business owner will most probably be doing most tasks alone. In view of this, it is critical that the entrepreneur sets up a system to help him or her to organise the tasks systematically. There should be a good filing system, as well as good accounting records of all income and expenses. There should also be clear records of other business information such as clients’ details. This will help the business owner to get everything done in an organized way.
5. Be passionate:
Passion is the fuel that will keep a business owner going when things become difficult. Having a home business will come with its own challenges, but if the owner is passionate about the vision of the business, then he or she will be determined to keep it afloat in spite of the challenges. Passionate entrepreneurs also endeavour give their clients service which is of superior quality. This usually results in a healthy growth in sales.
6. Spend time outside the home:
Having a home business can become mundane. The business owner could become tired of seeing the same environment all day and all night. This can sometimes cause discouragement. It is advisable for the entrepreneur to take regular breaks and go outside the home to enjoy some social activities with friends. This will give him or her some renewed energy to continue working in the home environment.
In conclusion, having a home business can be a great success if the entrepreneur is careful to be self-disciplined and hardworking.