If you have intentions of owning and running a business, you should consider aspects such as leasing commercial property, commuting to a workplace, and effectively supervising staff members.
As the number of home businesses increases, an increasing number of individuals are finding ways to utilize remote work in order to pursue entrepreneurship, establishing their businesses at home.
Home-based businesses come in various forms in today’s connected world, where technology allows for increased flexibility in the way and location we work.
There are some businesses that necessitate the transformation of a spare room into a mini-warehouse for products, whereas others can be conducted solely online. However, in general, you can initiate these types of enterprises utilizing your current space and resources.
What makes a “home-based” business: the pros and cons
A home-based business is a type of venture that can be started and operated from your own home, either as a full-time endeavor or as a side job. Some home-based businesses, especially those that sell products online and do not require a large inventory, can even be managed while on the move, without being limited to your home.
When considering if a home-based business is suitable for you, it is important to think about the advantages and disadvantages.
Pros:
- A low-cost business has fewer overhead costs (such as warehousing fees), plus potential tax deductions you can claim.
- The option to sell products or services locally or internationally.
- Flexible work-life balance, which is ideal if, for example, you’re a stay-at-home parent or a retiree.
- You can create a family business where your relations or your spouse can chip in as needed.
Cons:
- You may need to convert space in your home to support the needs of your business (e.g., holding inventory, creating a home office, or storing equipment). The challenge can be doing this without disrupting your life at home.
- You still have to comply with any regulations that pertain to the business you want to start (e.g., you may need to rent a commercial kitchen if you plan to sell food products, or a license/permit to hold inventory).
- Your business may outgrow your home and require you to rent additional space and hire employees.
- Working from home offers you a lot of freedom, but it can also be lonely. This might be difficult if you enjoy being around other people.
Profitable home business ideas
Website designer
Becoming a web designer requires only a laptop, a hard drive, and wifi. It is widely known that having a properly organized website is essential for the success of a business, making web designing a valuable skill that can be utilized from any location.
According to Michael White, president and owner of White Media, your website serves as your initial impression.
Having all the necessary coding skills is not essential, so there is no need to panic. According to White, what really matters is creativity. Even if you lack coding and SEO knowledge, you can still acquire them by taking classes, studying independently, or finding a mentor. Therefore, if you possess artistic and design abilities, this business can still be pursued by you.
According to White, the key to success in this industry lies in one’s creativity.
According to Ken Braun, the founder of web development business Lounge Lizard, a web design company can be started with minimal expenses. He personally started his company by investing just $50 per month to purchase a small text link ad for promoting his services on other websites.
Braun says that Lounge Lizard became a seven-figure company within 10 months by netting clients around the world from a $50 monthly investment.
Accountant
Surprisingly, there are others who also feel reluctant about spending extended hours in an office or attending meetings. If you have an affinity for numbers but prefer to forgo the daily routine of dressing formally, consider pursuing a career as an online accountant. The essential requirements include a laptop, an accounting certification, and a phone.
Ian Crosby, cofounder and CEO of Bench, an online bookkeeping company, states that entrepreneurs no longer wish to undertake hour-long in-person meetings to handle the routine tasks associated with running a business.
Crosby emphasizes the significance of effective communication in ensuring the success of an online company’s customer service.
“What we’ve found is that tech-friendly entrepreneurs aren’t looking for [in-depth conversations] anymore,” Crosby says. “They’re looking for fast, convenient and delightful communication. None of which can be achieved in an hour-long meeting in a tube-lit office space.”
Matchmaking service
We are not limiting our discussion to Tinder or eHarmony alone. A matchmaking service refers to any type of technology that connects businesses or individuals with the specific services they need. This type of business can be operated from any location, as all the operations can be conducted online.
To ensure a successful matchmaking business, it is beneficial to offer expertise promptly to companies in times of need. Zintro is an illustration of this, operating as a website that connects companies with experts for various purposes such as projects, phone consultations, and job opportunities.
According to Zintro’s cofounder and board member Enrique Levin, the process of their business involves customers submitting a project, followed by experts providing a summary of their qualifications and a bid explaining why they are the most suitable candidate for the job. This convenient approach allows users to hire an expert without the need to explore multiple sources.
Tech support
Technical support companies provide a lucrative opportunity to earn money, as not everyone possesses sufficient technical knowledge. Although establishing such a company may involve conducting on-site visits to businesses or residences for troubleshooting purposes, it is still possible to manage the company remotely from any location.
Three years ago, Daniel Gagnon, who is currently the president and co-founder of TekHattan Holdings, a company specializing in IT support in New York City, took advantage of this idea. At the time, Gagnon and his co-founder Alexander Hernandez held positions at CityMD, with Gagnon as a senior manager and Hernandez as an IT technician, while also providing IT support as a side job.
As their side business experienced growth through customer referrals, it led them to quit their jobs at CityMD, giving rise to TekHattan.
“I had to make the decision to leave my day job in hopes of making the American dream,” Gagnon said. “It paid off.”
He stressed the significance of communication and customer service, asserting that these are critical elements in an online company.
Sell homemade products
If you are a creator or know someone who is, think about transitioning that interest into a business. Even if you have to produce your items outside of your home, such as in a studio, commercial kitchen, or workshop, you might still have the opportunity to store and sell them from your own residence.
By having the capability to regulate almost every aspect of the products you offer for sale, you have the opportunity to enhance their affordability, enhance their quality, or customize them for a specific target audience by focusing on market demand.
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