The entrepreneurship dream becomes a reality for entrepreneurs in different ways, such as owning a successful home-based business. Before you start working on your home business, analyze some of the factors that affect the viability and success of your company (business).
The delicate balance between your home life and business depends on the set up and preparation of the company. Here are four main factors an entrepreneur should consider before establishing a home-based business:
This is a major consideration before going into business. You require good understanding of your finances. Using your home as a business location saves you money, which you would have used on a lease for a business property.
However, you still require funding to lift your company off the ground. Calculate both ongoing expenses such as supplies and insurance and one-time expenses such as the initial equipment for the first 6-12 months.
This will help you determine how much you will require setting up this kind of business.
- Marketing strategy
Having a home-based business means, you will miss out owning a storefront, which possibly draws in new customers. Before you begin your business, consider your marketing needs and the advertisement of your business.
Explore all possible marketing options suitable for your business, including online advertising, word-of-mouth and traditional print ads. Identify your target audience and plan on how best you can reach them.
- Business Scope
Before you set up your business, you need to understand its scope. Determine the initial size of the company and future expansion plan of the business.
Make a specific decision on which products and services you plan to offer. Choosing a specialty always helps you stand out, specifically in a competitive market. Understanding the scope of your business assists you in planning any other aspects like marketing strategy.
- Space needed
Consider the number of activities carried out in your business and the amount of space required. In case your business involves selling of real products, you will need a storage for your inventory.
Plan where you will run your business (at home) and how your space requirements will influence the rest of the family.