Women's Business Blog

Women's Business Coach: TIP OF THE WEEK: Home-Based Business How Tos

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It's a fact that 2 out of every 3 new businesses being started in the U.S. today are started by women. Many women choose entrepreneurship in order to bring greater flexibility into their work life and therefore decide to start a home-based business. Before the 1980s, home-based businesses were seen as hobby businesses started by women who had the entrepreneurial itch and wanted to sell their home-made goods to the public. But when the recession of the late 80s hit and many senior executive men became unemployed for the first time from their white-collared jobs, home-based businesses took on a new meaning as many of these men started consulting businesses from their homes. (Isn't it a great country when the habits of unemployed men bring credibility to something women started...but I digress.) Today, women, and many men too, are starting companies in every industry from software to construction, delivering both product and service from home. Our technology allows outsourcing for tasks such as manufacturing, fullfillment, R&D and more. So, it is clear that the home-based business label just isn't "your father's oldsmobile" anymore, but more likely a work/family lifestyle decision. But before, you quit your day job, launch your business and begin working in your pjs let's take a look at the key indicators that demonstrate your ability to be successful.

First, do you have the ability to separate your office from the rest of the home? Even if you have a husband at work and children at school 5 days out of 7 you'll need space that is dedicated to your business 24/7. Customers and vendors will find a way to need you outside your committed work time and having family background "music" does not do well for your credibility.

Second, do you have the necessary funding to start your business? Although, you are starting off in your home you must treat your new business just as if you were renting office space and include all the expenses that come with that plan. When pricing your new product or service these expenses play into what you need to charge customers. Too often small business owners assume they can forget about these expenses and come into the market at a price lower than their competitor just because they work from home. The problem with this logic is that you truly aren't covering all your cost. Don't make this mistake! It is the mistake that most often puts home-based businesses out of business.

Third, are you truly self-motivated and self-reliant? Do you wake up in the morning get yourself readied for business-battle and tackle the phones or pile on your desk? Or, is your current work approach more about the socialization that comes with working in an office and checking in with what others are doing? If the latter is more your style the isolation of a home-based business will be your undoing. Now, this doesn't mean you can't become the entrepreneur you dream to be. It just means you need to keep yourself in an office setting where you have the interaction you need to get motivated for the job that needs doing. The world is made up of all types of personalities and knowing yourself well enough to be honest about whether a home-based business is right for you is critical before walking down this path.

Finally, a home-based business needs the support of all those that live in the home. If for any reason the people or animals that live in your home won't or can't back you in this decision DON'T DO IT! There are plenty of horror stories of children answering the phone and telling that customer you fume about just what you really think of her/him.

Home-based businesses will continue to be the future for not only women but men as well. Virtual offices are claraly the future. Please consider each tip above before deciding if it is right for you.

HIRE VICKI TO SPEAK AT YOU NEXT EVENT!