Key takeaways
- Your home might be a bigger asset than you think.
- A home-based business offers many advantages for a startup venture
- You can work in a low-cost environment and enjoy a lower risk.
- Since information and communication technology is widespread and inexpensive, you have a good infrastructure.
Most people use their homes as places to live and relax after a long day at work. Many pay a mortgage to enjoy the benefits of homeownership. It is better than renting, they say. But what could be better than owning a home? What about owning a home and letting it pay the mortgage? Sounds like hype, well, read this story about Better Graham. You may change your mind.
Bette Graham, a single mother who had dreams of becoming an artist, took a job with a Texas bank in the early 1950s as a secretary to support her young son. She worked hard and rose to the position of executive secretary to the chairman. Her typing skills, however, were not very good, and she often had difficulty typing over documents. This challenge occurred before personal computers. Bette had an idea one day to use wall paint and a small paintbrush to cover over her mistakes. Using her artistic skills, she mixed more paint to match the paper colours and gave them to her colleagues. She sold her first bottle of "Mistake Out" in 1956, making it in her garage and selling it part-time. Business grew, and by 1968, she moved out of her home and invested in a factory. It later became Liquid Paper.
The Home Sweet Home
If you feel that working from home is odd, think again. The most powerful man on the planet works from home. The U.S. President lives and works at the White House.
The typical story of entrepreneurs starting their businesses in garages, bedrooms, spare rooms, back or front yards, and porches is familiar. Starting from home offers several advantages. The number one benefit is the low cost. If you are situated near your customers, suppliers or employees, that is another advantage. Since it's challenging to find workers, having a home-based business might let you easily hire from your community or even sell to them. Think about the speed of your response to a customer nearby.
Some people start a business from home for lifestyle reasons. I love the one-minute commute from upstairs to my downstairs office. It is the kind of life that everyone cherishes. You might be a single parent, and this is a way to start working very early, before the kids' routine starts. Remember, when you are at home, everyone else is in traffic, you have already done 2 hours of work, and you are enjoying a homemade breakfast.
Being home alone can be a terrific way to spend more time with your family and yourself. I like being alone sometimes, and it is a good opportunity to reflect and be creative. Creativity is, after all, the precursor to ideas and innovation.
Home Essentials
While home has its advantages, it also has drawbacks. If you are home with your family, it could get very unproductive. The constant demands from them and the allure of a snack-filled refrigerator can be a distraction. Then there is the drop in neighbours and relatives. So, you have to manage all these distractions. First, let them know you are working from home and not unemployed. Try to schedule your work time around the 'de-tractors'; when they're out or sleeping, if you can. Or better yet, involve your family in the business. This model is a nice opportunity to give them a business education, tap into some free labour, and hopefully leave this business to them or maintain continuity.
If you have a business that needs a production environment, a designated area that can be converted from your garage, an adjoining room, or a small extension might work. Remember that while renting a place might give you more space, the ideal approach is to use a low-cost one. A business startup is a business experiment; it may not work out the way you envisioned.
Home Ideas
Now that you have your home set up to open your dream business, you might be wondering what kind of business is suited to a home environment.
Because we live in the information age, service businesses are very attractive and appropriate for your home. This venture can be consulting, event management, professional services, or any service that the client might not come to see you for. Most businesses require you to see them instead, and if they ask about your office, tell them you are between offices and take them to Rituals!
Selling products, whether manufactured at home or imported, can be done from a small store room. If you import seeds (or collect them yourself) or make wines, these items need little space, and your station wagon is your commercial delivery vehicle.
Some businesses require that the work be completed at the customer's residence. If you are a skilled plumber, electrician, or technician who services air conditioners and heavy home appliances, these items are better repaired on-site.
Then there are people with hobbies that could easily be turned into a business. Tropical fish, backyard gardens, dog breeding, tutoring, and other activities can be part of a commercial home operation.
If you live near a busy road, this might be an opportunity to sell food. If you want to be different and experiment with geera chicken, a low-cost way is to set up your food stall outside your driveway and start selling. If things take off, you can convert your kitchen into a commercial one.
So, your home is not just a place to live, but it could also be an untapped opportunity. So, walk around your home and ask yourself, why am I paying for this White Elephant?
Sajjad Hamid is an Entrepreneurship Educator who supports entrepreneurs in scaling their ventures. In his spare time in Trinidad and Tobago, he cultivates organic tropical fruits and vegetables, practising sustainable farming in his home garden.
He is the author of Build Your Legacy Business: Solopreneur To Family Business Hero. Sajjad is a Fellow of the Family Firm Institute. You can contact him at [email protected] or visit www.entrepreneurtnt.com.
Responses