Australian media reports that the Australian entrepreneur scene is booming, with 35% of Australia’s startups being based in Sydney. In America, over 6% of Americans own their own business as their main form of income, and America ranks 1st for providing the best environment for cultivating entrepreneurs. In the UK, 660,000 companies were established in 2017, which reaches a new record for most companies started in a year.
That is a lot of worldwide creativity out there, which is incredible for the economy and general life satisfaction. People are truly living their dreams and making their own fortunes. The thing is, starting a business does not mean an office, warehouse, and income suddenly falls into your lap. There is a lot more meat to the entrepreneurial bone than just starting a business, and more often than not, the story starts at home.
Setting Up A Business From Home
When you set up a business, one of the easiest ways to gently start it up without worrying about additional costs is to set it up from home. According to statistics, startups can take approximately three years to generate income, which is a long time to be paying out overheads for office space, warehouse space, and other costs you don’t have if you work from home. You have a lot of control when you set up a business from home, and there is also something to be said for taking a business call in your pajamas whilst you pet your cat!
Thinking about setting up a business from home?
Consider these important points before you commit:
Is Your Family On Board?
Clearly, you can’t just drop your job and start a business on a whim when you don’t have savings and especially if you have a family depending on you. If you have a business idea and a plan, you have to talk it over with any family affected by your decision, any dependents or partners who have a say in your financial decisions. It would help if you had their support, but you also need to know they are happy to take the risk. Who knows, they might even want to go into business with you.
Are You Prepared?
Starting a business from home needs a lot of preparation. It would help if you thought about logistics, finances, timing, storage – all kinds of things that you perhaps didn’t have to think about when it comes to your home. Ideally, you will still have your job and prepare at least six months in advance of going into everything fully. If you can start your business off and build it until it covers your job’s wages, that is an ideal scenario. If you have to take some leap, try to save at least six months’ wages from knowing you are safe for that period of time. You may also want to have a cut-off point to look into paid work if the business isn’t working or growing at all. Look into planning and organization tools to turn your startup into a project, and you will find you have an idea of exactly which goals you should be meeting and when. Of course, unexpected things will crop up but, you can add them to your app or program as they happen. Keeping on top of it all is the priority.
Where Will You Work?
Where will you work when you work from home? If you live alone, you could essentially live anywhere, but you may find it tricky to take conference calls and speak to suppliers in your living room if you live with others. Even working in Starbucks isn’t ideal when a huge family with children has decided to sit next to you just like potential client calls. The frappuccinos are nice but, they don’t justify unreliable WiFi and coffee shop customers who care more about the latest celebrity gossip than your business succeeding. So, where do you work?
If you can, a garden office is an ideal location for you to work. You’re still at home but, you’re separate enough to avoid noises from your house. You can set up the internet, you can add lighting, and if it is a workshop, a diesel generator is ideal for your power needs if you don’t want to add wiring from your home. You can easily find well-priced generators for sale that fit your needs. It just needs to be a comfortable, quiet space with the right amenities and possibly even additional storage space if your business has stock. This YouTube video is a great starting point for garden office inspiration.
It is important to check if there are any legal restrictions on using your home as your business base. You may feel it is your home to do with as you please, but laws in some countries dictate you cannot use a home for business use or certain types of business. Your property title deeds should explain any restrictions that you do have. At the very least, any business that creates a lot of noise and mess may well cause issues for the neighbors who are well within their rights to report you.
It may be that the lease of the property has some restrictions on it, or if you rent, you may need to gain some authorization from your landlord. Some mortgages, insurance companies, and local council authorities may also have restrictions on using a property for business. It is always worth checking before you commit to anything, as fines can be chunky, and you may even end up losing the roof over your head, depending on the situation you find yourself in. If you want something you have never had, you must be willing to do something you have never done – Thomas Jefferson.
Starting a business anywhere is pretty scary but also extremely exciting. Starting a business from home can be rewarding, and it can help support your new venture without adding risk from property commitments and contracts. Just make sure you plan, plan again, and then plan a third time to make sure you’re totally prepared for your new start. Starting a business is always a risk, but it will be a measured risk that hopefully ends up reaping plenty of rewards if you’re sensible.