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 the most companies started in a year.
That is a lot of worldwide creativity out there which is incredible for the economy and for general life satisfaction. People are truly living their dreams and making their own fortune. The thing is, starting a business does not mean an office, warehouse and income suddenly fall 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 a 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:
Are 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 that will be affected by your decision, any dependents or partners who have a say in your financial decisions. You need their support but you also need to know they are happy to take the risk as well. 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. You need to think 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 the wages of your job, that is an ideal scenario. If you do have to take some sort of leap, try to save at least six months wages so that you know 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 organisation 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 programme as they happen. Keeping on top of it all is the priority.
Where Will You Work?
It may sound obvious but, where will you work when you work from home? If you live alone you could essentially live anywhere but, if you live with others then you may find it tricky to take conference calls and speak to suppliers in your living room. Even working in Starbucks isn’t ideal when a huge family with children has decided to sit next to you just as a 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, there are laws in some countries that dictate you cannot use a home for business use or for 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 is something that may well cause issues for the neighbours 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 authorisation 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 that you’re totally prepared for your new start. Starting a business is always a risk but, if you’re sensible, it will be measured risk that hopefully ends up reaping plenty of reward.