A home based business opportunity has come your way... You savour the idea of 'pushing the boat out', handing in your resignation, and becoming your own boss. This new home based business opportunity offers you a pathway to freedom, the ability to have a new lifestyle, to redefine yourself and to experience a better life. All you need to do now is sign up, send off a small deposit and you'll soon be earning massive amounts of money working from home.
But before you sign on the dotted line, put the stamp on the envelope, and hand in your resignation, it might be worth doing a bit of research and planning...
Home based working really started to take off during the 1980s, such that by the early 1990s approximately 1 in 5 people used their own house as a place to work (source: Monthly Labor Review, November 1996). This was often a supplement to 'work at the office' rather than people being self employed. But we can see from US census data that by the mid 1990s, approximately 5% of the population had embarked on some form of home based business opportunity (source: "home based workers in the United States: 1997). A meta-analysis of more recent estimates suggest that the number of home-based workers has nearly doubled since the mid 1990s.
Therefore, it would seem that it is possible to achieve your dream. However, there are many potential pitfalls.
The most important aspect is research and planning, which is the one main recommendation we make.
Don't embark on a new venture until you have produced a plan that convinces you (and your bank manager) that you can make it work.
Perhaps one other key point is to establish a support network around you. For example, it is also important to get help for the things you are not good at. If you are going to make use of a home based business opportunity, it will be hard work, and you needn't add to that stress by forcing yourself to do things you don't enjoy. Your bank manager should be one of those - he/she may ask you some awkward questions, but those questions need to be asked.
Also, there are companies that will provide a service for almost any aspect of your home-based business. For example, if you hate cold-calling (and most people do), you can get a specialist company to do that for you and generate warm leads for you to follow up on. If you don't understand tax returns, get an accountant to manage your paperwork. Make sure you focus your time on what you are good at and will grow the business. Don't get bogged down or depressed by things other people could do for you.
There are plenty of scams out there
Your employer may offer a scheme that allows you to work at home.
But even if you are intending to give up your main job, it is advisable to run your home based business alongside your main job for the time being, until you know you are generating enough income. It is hard work in the short term, but it significantly reduces the financial risk and stress involved
There will be plenty of calls on your finances. Spend money on those things that will help you grow your business, defer the 'nice to haves' until you are generating plenty of income.
Your bank manager may ask you some awkward questions. Despite the public image, most bank managers are actually quite reasonable, and want to make sure that you are getting your business off on a good footing. Producing a cash flow forecast may not seem like fun, but it will massively increase your chances of staying in business. Making yourself accountable to the bank manager will be good for you and your business, in the long run.