Starting a new business from home

Starting your own part-time business from home can be the stepping stone to employment independence and financial success.  But before you hang your shingle, it’s important to be aware of just exactly what you’re taking on. Here are some things to think about before launching your start-up from the basement.

 The most successful start-ups began with someone working part-time while still employed elsewhere. Begin your business on a part-time bases until you begin to earn enough to replace your day job salary. Be cautious, however. Some companies look down on their employees working a second job, regardless of whether it competes or impacts the business. Additionally, if you’re doing something outside your day job, you might want to speak to your boss or the office of human resources to make sure you aren’t violating any employment policies, but other than that, keep it to yourself.

Examine your existing skills and background to determine a line of work and choose the occupational category that offers you the most job satisfaction with the highest earning potential. You might need to do some give and take there, but go in with your eyes open.

Do your homework on startup costs. Something that can kill a business before it gets off the ground is when the owner is blind to the expenses required to launch a company, even a part-time endeavor. Determine what you need in the way of incorporation filings, business licensing and operating insurance. (Workers compensation and health insurance for a self-employed individual is also something to be considered in your expenses.)

Zoning might play a part in your decision making process as well. Is it even legal for you to operate out of your house and what restrictions apply? You will want to make the time to meet with a business attorney and insurance agent for expert guidance on these matters. Be as thorough as you can at the start and you’ll save a mountain of headaches later.

Once you’ve figured out what you want to do, do some research on whether there is an existing market how you want to structure your business. Generally, part-time startups fall into three basic categories: Multilevel Marketing Companies, Franchies, or Self-Start Businesses. Consider the following pros and cons of each category.

Home Based Business Ideas – Article from Entrepreneur Magazine

Types of businesses

• Multilevel Marketing (Direct Sales – Avon, Amway, etc.)
  • Pros:
    • Brand Recognition Product line provided
    • Marketing Tools Provided
    • Little to No Investment
    • Great for part-time, home-based model
    • You Can Start Immediately In Most Cases
  • Cons:
    • Restrictive marketing options
    • You Don’t Own Brand / Company
    • Sometimes requires a ‘hard sell’
    • High Market Saturation
  • Franchise
    • Pros:
      • Product Line Provided
      • Established Brands
      • Marketing Tools Provided
    • Cons:
      • Expensive Investment
      • Usually Does Not Fit Home-Based Model
      • You Don’t Own Brand / Company
    • Self-Start Business
      • Pros:
        • Complete Control of Brand / Product / Service
        • No Restrictions on Marketing
        • All Revenues Are Yours
        • You Own It
      • Cons:
        • No Brand Recognition
        • No Outside Support
        • Long Hours / Low Revenue On Startup

For more information on business startups contact us at GLD Enterprises Communications, 937-902-4857 or email gdeer@gldenterprises.net.

Editorial Note: 3-6-2015 The previous MLM company ranking graphic has been removed. For detailed MLM statistics, we recommend: http://www.dsa.org/research/industry-statistics