As we continue to feel the sting of the recession, many have turned to working from home and therefore starting up their own home businesses. Research conducted by Lloyds TSB Business Insurance indicates in the UK there are 5.9 million home-based businesses where 27% of these businesses were incorporatred in 2010.
There are many motivations for starting a home based business. 50% of people chose to work from home because they wanted to run their own business and be in charge of the critical decisions. Others prefer working from home so that they can appreciate more flexible working hours and therefore can spend more time with their families.
Work begins when you want it to begin…
There are several benefits in running a home based business. The major advantage is your office is right beside your bed so you don’t have to worry about topping up the oyster card, paying for lunch or the worst case scenario paying for petrol. You can work in your pyjamas and work starts when you want it to start. Forget 9 to 5 hours shifts. Work begins when you want it to begin and it can go on as long as you want, late into midnight if appropriate.
Furthermore, you no longer need to distinguish yourself as the marketer, as the receptionist or the salesperson. Practically you can shift from position to position as you have all the responsibility. This can be more motivating for some people as it really allows them to unleash their creative potential meaning job enrichment and improved productivity.
Paid holidays or sick days no longer exist…
Essentially how much you earn depends on your performance. This however can have a down side. You only earn income when you are working. Paid holidays or sick days no longer exist. If you are not working, money will not be coming in. Add to this the initial investment you need to buy equipment and various other implements to start the business, home based businesses begin to appear expensive. Furthermore, even though you are running a home based business you still need to pay taxes. The difference is you have to administrate taxes yourself, whereas if you were working in a company, this process would be automatic.
…being self-motivated is crucial…
Looking at the landscape of the economic recession and considering the competitiveness of graduate schemes, setting up a home-based business is a viable option. However you need to be highly motivated, you need efficient sales and marketing skills and being self-motivated is crucial. However this may be a problem given that procrastination seems to follow me wherever I go.
Image courtesy of Britt Selvitelle