Are You Ready For A Home Based Business?

By Leah Gibbs from www.workathomemums.com.au

The daily commute to and from work has literally hit home for an estimated one million Australians who operate a home-based business. Instead of getting in their car, catching a bus or jumping on a train to travel to the office, their commute is a journey just a few footsteps down the hallway to the spare room-cum-home office.

A home-based business is a business you operate from home rather than at commercial premises. In some cases, all of the business is conducted in the home, while in others only the administrative aspects of the business are carried out in the home. A home-based business can also be described as a micro business, a business operated by one person.

Australian Bureau of Statistics figures from 2004 showing that 67.6 per cent of small businesses were home-based. In NSW in June the same year there were 282,400 home-based businesses in NSW, representing 63.8% of the State’s small businesses.

The working from home trend has been gaining pace over the past decade and is linked closely to the increasing desire for more flexible working hours and improved work-life balance, cutting the time and costs of travelling to and from work. It has become more viable with each improvement in technology.

Whether you are starting a new business at home or setting up a home based franchise, there is much to consider, including your personal qualities and your family’s needs. Use the checklist below to estimate your chance of success.

Checklist – Estimate Your Chances Of Success
Answer Yes Or No

• I am financially secure and can afford to lose what I invest in the business
• I am able to work alone and thrive on this
• I can block out the background distractions of the family home and the screaming children
• I am physically and mentally strong and can get along without paid holidays and sick days
• I have a business plan and marketing plan
• I am prepared to do all the paperwork (and wear many hats) and I am highly organised
• I can see the value of sharing ideas with like-minded people (networking)
• I am prepared to do a short course on bookkeeping, finances or small business
• I am prepared to research and meet my legal obligations as a business operator
• My business is more than a hobby
• I have chosen a business structure, registered a business name and have an ABN
• I have a separate work space set up with its own equipment including a computer, printer, telecommunications and internet

If you anwered 'Yes' to at least 8/11 questions, you are well prepared for a home based business

If you answered 'Yes' to less than 8 questions, more work is needed before you make this commitment

---