The Underground Business Revolution
Working from home has gained credibility over the years. Home offices can now compete with small commercial businesses and save on rent in the process. It may also be possible to tax deduct some of your home expenses while running a home based business.[2] Faxes, high speed internet connections, dedicated home telephone lines, and cell phones help to make a home-based business a reality. Earlier home businesses had been where families lived on the second floor of their house while converting the first floor into a store, where upon close of business they would secure the first floor and retire to the upper floors. This type of home business is still done in some rural areas.
Many home businesses are started off in a much smaller capacity whilst the owner is still employed elsewhere, and then expanded once they are proven to be profitable.
The concept of home-based business, as opposed to the previous terminology of "cottage industry", first appeared in 1978. The phrase was coined by Marion Behr, the originator of a study to find out what businesses women throughout America were carrying on in their homes.
1. Set out your working from home idea(s)
Knowing your product inside-out will give your business a solid starting point. Maybe you’re planning to set up as an acupuncturist, or you’re turning your tech expertise into a website consultancy.
Whatever your products and services, your business idea will need thorough market research to succeed. A great place to start is with your local competition, or similar business set-ups.
Friends and competitors
On the one hand, you’re going to be competing for local business and customers. On the other, you can learn a lot from successful business set-ups, and there’s often potential for collaborations and joint-projects – and maybe even referrals.
Spend some time researching your target customers – are they local, or mostly online? Where are they likely to see your advertising? What sort of prices will work for them? Once you’re clued up, build a list of the businesses currently serving their needs and get a feel for what they’re doing right. Can you approach a couple of owners and tap into their experience? They may have a long waiting list for their services, and be happy to pass on advice and referrals.
For example, you might be setting up a home business as a violin teacher, and live nearby to someone teaching flute. Their advice could be invaluable, with lots of potential for exchanging referrals.
2. Put together a business plan
Every business evolves as it grows, but nailing down a plan of your own business ideas, target customers, competitors and skill set is a must, before you commit time and money.