HOME-BASED BUSINESS BASICS:
Some Basics You Should Consider
Copyright © 2004
Workhomecareer.com
The positives of working at
home are accompanied by certain negatives. This article reviews some of
the basics.
Going to work in the past
for most meant traveling from home to a job site or office. Today many
people do all or a portion of their work at home. A private
market-research firm estimates that at least as many as 14 million
people squeeze extra hours into their work week by taking their work
home.
More and More people are
striking out and achieving financial independence by turning their
skills or hobbies into dollars. Dining rooms, garages, basements and
bedrooms are being transformed into home offices of the newest
entrepreneurs - home-based businesspeople.
IS A HOME-BASED BUSINESS
RIGHT FOR YOU?
Choosing a home business must be approached with a great deal of care.
You need to learn as much about the market for any product or service as
you can. Before you invest your time and money, take a few minutes and
answer the following questions.
What product or service will
you offer?
Is there a great demand for your product or service?
Do you have the talent and knowledge needed to compete successfully?
Before you start a
home-based business, it's important that you know what your goals are
and how you will achieve them. Although a great to desire to be your own
boss, your business must be based on something much more important:
Understand what's involved and be ready for a lot of hard work. You have
to plan ahead and then be ready to make improvements and adjustments
along the road.
Working under the same roof
with your family may not be as easy as it seems. It is important that
you make your environment a professional one. If possible you should set
up a separate area for an office in your home. You have to consider
whether your can make the space for a business in your home, and whether
you can run the business from your home without being distracted.
To estimate your start-up
costs, include all initial expenses such as licenses fees, permits,
tools, office equipment and so on.
Experts suggest you should not expect a profit for the first 7 to 10
months. Make sure you compensate for this.
Project Operating Expenses
Include salaries, office supplies, loan payments, taxes, legal services
and insurance.
Determining Cash Flow
Working capital to pay your bills. Your assets may look great on the
balance sheet but it may be necessary to have cash available.
Estimate your Income
Estimate your sales on a daily and monthly basis. The estimates will
help you to develop projected income statements. Know your brake even
point. Use your market research to estimate your initial income.
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