Starting a home-based business is an exciting venture. But before you begin, complete this self-assessment so you’re prepared for what you’re getting into.
The rewards of home-based business
What do you want out of your home-based business? Having a home-based business has many rewards: the freedom of being your own boss, the personal satisfaction of accomplishment, and the chance to earn an income that is only limited by your skill and determination.
The downside of home-based business
There’s no arguing that having a home-based business is a wonderful way to make a living. I’ve done it for the past 20 years and wouldn’t have it any other way.
However, having a home-based business takes a level of effort and energy that many people underestimate. It can place incredible demands on your time, your family relationships, and your money.
And the unfortunate fact is that the majority (estimated as high as 70 per cent) of all new businesses fail within three years. It’s rare for a new business to provide any significant financial return to the owner in the first two or three years. Yes, you read that right. Even if your home-based business is successful, it may be three years or more before you are making the kind of income that you would like.
Do you have the personal qualities required?
Are you independent, ambitious, confident, hard working, a risk-taker and a problem solver? Do you enjoy working alone? Successful small business owners often have most of these traits.
Do you have the knowledge required?
Are you knowledgeable about the industry or type of business that you are considering? Are you really excited about your idea? Do you have business training in sales, marketing and production? Do you have the ability to put together a business plan?
Do you know your weak areas?
Are you willing to take training courses in your weak areas? Will you hire experts to do the things that you can’t do? Do you have the money to pay for this assistance? Do you want to set up a partnership with someone who has the skills that you lack?
Do you have the family support required?
Do you have the full support of your family? When you work at home you are around family members a lot more hours of the day. You also will likely be working longer hours, at least to start. And the money situation will be iffy. What impact will this have on your relationships? Your prospects for success will improve when those close to you share your commitment.
Do you have enough money?
Starting a home-based business is often more costly than you think. And you won’t have a regular pay cheque for quite a while. Are you prepared to spend the money required during the start-up phase? Be thorough and realistic about how much you need right from the start so your business isn’t jeopardized after you’ve invested months of hard work.
And here’s an excellent entrepreneurial self-assessment quiz that I think you might find interesting.
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