Many people find a startup to be intimidating. After all, there is so much to do and risks to take when starting your own brand. But for those brave souls who wish to try their luck in business, one decision they need to decide on is whether to start their business at home or elsewhere.
According to statistics, up to 50% of US-based brands are based at home. This shows just how many brands blossomed and continue to thrive in the comforts of their owner’s homes. While not everyone can afford to start a business in their own backyard, it won’t hurt to reconsider your options.
Why It Makes Sense to Start a Home-based Brand
Home-based businesses offer owners undeniable perks, which makes this one of the best options they have. The following are some of the best reasons a home-based location is the target of many aspiring entrepreneurs.
Time and Cost Savings
When you run your business from home, you get to save money on rent and save time when going to and from your office. You no longer need to spend as much money, time, and energy just to find the right location, renovate the place, and even maintain your location. You can even save money on tax while taking a lesser risk since you need a lower capital to get started.
Independence and Flexibility
When you start a business from home, you get the opportunity to enjoy more flexible work hours. You can work part-time and employ staff to take care of some of your responsibilities. You no longer have to abide by your employer’s rules, let alone be trapped in a fixed work schedule.
Weighing the Cons of Home-based Businesses
Like all good things, starting a business from home has its drawbacks. Knowing what these are will help you learn what you could be getting yourself into. Before you even make the investment, be sure to consider the following cons of starting a home-based brand.
Difficulty Separating Work and Home Life
When your place of business is also your living space, it becomes hard to draw the line and live separate lives. There is a need to focus on your business during work hours and prioritize your personal life afterward. But when there is no physical line to separate this, you can end up getting distracted and burned out.
Longer Work Hours
Many home-based business owners find themselves working extra-long hours just to get everything done. Before they know it, they no longer have time for their family, let alone for self-care. As a result, they end up more tired than ever.
Feel a Sense of Isolation
No matter how successful your home-based business is, you can sometimes feel isolated and depressed for working from home. This is especially true if you lack enough contact with others. Many people working from home suffer from depression and anxiety because of this very reason.
Finances Can Get Affected
Some home-based entrepreneurs fail to separate their personal and business finances. This negatively impacts their finances. One can end up using their personal savings just to pay for business expenses or lose their home after using it as collateral for a business loan.
Addressing the Drawbacks of Starting a Home-based Business
The good news is that there are solutions to your home-based business woes. The key is proper planning in everything you. Here’s what you can consider doing to increase your chances of managing a successful home-based brand.
It is crucial that you create a personal line between home life and your home-based business. You can do this by creating a space in your property meant only for business purposes. This can be your own home office, or better yet, a separate space where you can cater to your clients.
You can consider transforming your garage into a home office or creating a shed in your backyard and turning it into your brand’s physical location. It makes sense to hire a reliable commercial contractor since they know what needs to be done to start and finish the project on time.
Don’t forget about keeping your personal and business finances separate. Pay yourself once you start making a profit so that you can still sustain your own needs. Set up your work hours and avoid using your home-based business as an excuse to skip family dinners or other important family events.
It also makes sense that you don’t try to do everything on your own when you can get lots of help from your support system and other professionals. If hiring your own employees seems like an expense you can’t afford just yet, you can always turn to outsourcing. Lastly, give your time to rest, have fun, and nurture relationships outside of your home-based business. That way, you won’t feel isolated.
Starting a home-based brand can be a satisfying way to reach your financial dreams and pursue your passion. But before you even begin, it helps to know the challenges and benefits you can potentially face in making the investment. Weigh up your options and be ready to manage the cons so that you will enjoy a more fulfilling journey when building your brand.