Do Your Homework Before Working From Home
Millions of Canadians have set up a business at home. Some thrive. Some fail. The reasons for success or failure are as varied as the businesses themselves. If you’re thinking of joining the home working brigade, here are some points to ponder.
By Marilyn Arthurs
Working from home! Running your own business! Sounds perfect, doesn’t it? No more bullying bosses and nosey colleagues, no more hours of commuting in endless traffic, no more overcrowded buses and trains, or venturing out on dark, cold, rainy mornings. You’ll be your own boss and make piles of money. You’ll be able to work when you like and take time off whenever you feel like a break.
For some, that is the naïve image of working from home and it couldn’t be further from the truth. The decision to start your own business and work from home is a big one. There’s a lot at stake and it shouldn’t be taken lightly.
1. Why do you want to set up a home-based business?
Be sure you’re going into this for the right reasons, and not for emotional ones. You may hate your boss and be bored with your work but that doesn’t mean running your own business – and from home – is the way out. You might be better off changing jobs. Starting a business is a big commitment and it’s full of risk. It’s not for the faint-hearted and it’s rarely the perfect solution to a bad situation.
2. Is the business a viable one?
If there are several businesses nearby doing the same thing, will you really be able to break into the market? What’s different about your idea? What will it bring to the commercial party? What profit margin can you achieve? Ask yourself these two simple questions: if a friend or colleague approached you with this proposition, how would you react? And more importantly, would you be willing to invest in it? If the answer is ‘no’, dump the idea and think of something else.
3. Do you have enough money behind you?
Starting a business requires an investment of time and money. Even a basic business requires a computer and office equipment, telephone facilities and stationery sundries. Be sure you have enough money stashed away to keep you going for a while – six months is advisable and a year is even better.
4. Do you have the right temperament to work from home?
Working from home is not for everyone. If you don’t mind your own company, you’ll probably be fine, but if you are the type who needs to have colleagues around either to socialize with or to bounce ideas off, then working from home could well drive you crazy.
5. Are you self-disciplined?
When you work from home, there are so many distractions: TV, radio, the garden on a sunny day. Freelance writers, in particular, often admit to doing just about anything rather than writing, with many even resorting to housework rather than sitting down and getting that writing assignment out of the way. If you decide to work from home, you will have to be very disciplined. It’s important to treat your home office as you would any workplace, getting up at the usual time and dressing to go to work. You will need to set a standard from the start and keep to it.
6. What changes will you have to make?
It’s important to get your home business off on the right foot and that means checking out a lot of details to avoid future problems. Talk to your insurance company to make sure you are properly insured, talk to a tax or financial advisor to make sure you’ve informed the necessary authorities, and to see if there are any tax benefits for which you might be eligible.
7. How desperate are you?
Another common mistake many people make when they first set up a business is to take all and any work that comes their way. Again, this is emotional thinking. Step back, take a good look at the work on offer and check out the profit margin. Often the smallest jobs with the narrowest profit margins cause the most hassle. If a job is going to take too much time or you sense the chemistry isn’t right between you and a client, walk away. These are the jobs that can end up costing you money. You may need to build up a client portfolio, but that doesn’t mean you need to get everybody in it. As the saying goes, you are judged by the company you keep!
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