Do you have a hobby that you not only enjoy doing, but one that you manage to make a few extra dollars doing? Have you ever thought of turning that hobby into an actual business, but changed your mind when you started adding up operating costs, including rent? Do not despair; you may be able to reduce startup costs by turning that hobby into a home based business.
Hobbies that could result in a home based business:
Jewelry design
Furniture restoration
Computers (Setup, repair, teach)
Gardening
Cooking
Music (Piano, guitar teacher, etc.)
Writing
Crafts
Photography
Pets (Boarding, grooming, walking)
Identify if a hobby could be a profitable home based business by asking yourself a few questions:
Do you enjoy the activity enough to participate in it on a daily basis? If you are a wonderful cook and have thought about going into catering or producing a particular type of food for sale wholesale, keep in mind that just because you enjoy cooking for family and friends, it will be different if you are doing it on a larger scale, day in and day out. Look at the time and effort output realistically.
Are you competent enough at your hobby to take it that extra step and turn it into a business? Photographing your family and pets is different from dealing with a stranger's three-year-old who will not be still long enough to snap one photo, let alone half a dozen.
Is there a market for your item or service? The market could be local, or in today's computer age, global, but you should first recognize and identify if there is a market for your service or product.
Do you have enough physical space in your house? Depending on the business, this could be a corner for extra office space, to a whole floor of your house for a large-scale business. When considering space keep in mind both actual workspace and storage.
If the business will require customers coming to your house, is there adequate space available for parking? Determining this can be both a physical consideration and a zoning issue.
On the issue of zoning, will the law where you live allow your type of business? Be prepared to go before your local zoning board even if there are already similar businesses in your area, as regulations in regards to home based businesses can vary from business to business. For example, one business may not bring customers into a neighborhood, and they will be granted a variance, while a similar business may require additional traffic into a neighborhood via customers, and may be denied.
Additional possible startup costs:
Insurance
Supplies
Inventory
Advertising
Time
Insurance is often overlooked when you first consider startup costs for any home based business, but it can be one of your most important investments. From liability to fire insurance, never assume your homeowners insurance is adequate. In all but the rarest scenarios, you can assume just the opposite, which your existing insurance will not cover anything business related.
Advertising for a home based business can be especially important. If you need to draw in customers on a continuing basis and you are outside of the local areas typical shopping area, make sure customers know who and where you are. If your business is geared towards a wholesale market, letting your projected customers know whom you are through trade journals, business cards, networking, etc., is equally important.
If your business will require an inventory of product or supplies, a Wholesale Tax I.D. number may be needed. You may also be required to obtain a local or county license. Many businesses, such as a catering endeavor, will also require the following of codes and health inspections.
The last item, time, is often the most overlooked item when considering a home based business. You will be working for yourself, no one telling you what to do, no one overlooking you as you punch a time clock, -and-, no one writing you a paycheck every week. If you do not put in the time, there will be no return.
Home based businesses can be great when one thinks in terms of proximity to home. No long commutes, possibly no fancy clothes, even saving on childcare. Remember that while these can be advantages, they can also be drawbacks. Childcare is one area where conflicts can occur. You may assume that if you are going to be home, you might as well save on money normally spent on daycare. You may be able to, but you may also still need a babysitter. Learn to recognize when money spent on childcare will increase your earnings through a more focused time spent on business.
A big part of a successful home based business is 'balance'. Balance between home and home based. Balance between family and business. Good luck!
