Ten-Figure Guide - Dangers and Pitfalls of a Home-Based Business
By: Rob Walcher
New Buzz Words
They're the current buzz words: "work from home" and "home-based business." You hear them on the on the news, in magazines, on the Internet and in the break room and around the water cooler. Everyone is talking about how great it would be to break away and be your own boss. It's become everyone's dream: "Heck with this place. I'm outta here."
You've been surfing the Internet and you've seen the opportunities everywhere. They sound terrific! You've looked at network marketing, internet marketing, internet businesses, direct sales and the myriads of other online money-making programs now available. You are hyped!
Is It For Everyone?
While it may be everyone's dream to "be my own boss," does everyone possess the personality traits needed to even be their own boss? The obvious answer is no. There are people who work well under the structure of a "job" and a "boss." To insist that the trend of working from home is for everyone is to have a totally distorted view.
Leaving your salaried job to work from home is a big step and should not be taken lightly. If you think it's a good thing for you simply because the media hype says it's a good thing - beware! You could be headed for disaster.
Is working from home all peaches and cream? Is it the perfect world the gurus with their splashy ads say it is? Of course not. And if not, what are some of the negatives of working from home? Here are just a few.
Are You Suited?
We have just alluded to the first negative. Bottom line - you may not be suited to being your own boss. Your personality may need the structure of a go-to-work job. The social aspect of being surrounded by co-workers may be something you would miss by working alone on your own each day. You'd better know this ahead of time.
Distractionsa
If you thought working from home meant no distractions, think again. The laundry needs to be done, the house needs cleaning, the lawn needs mowing, your friend needs someone to meet for lunch. If it's summer, the kids are running in and out demanding your attention. If you have toddlers, they will set up a squall the moment you are on an important phone call. How you learn to deal with these distractions can make or break your business.
Jack-of-All-Trades
You are now not only the boss, but the bookkeeper, the secretary, the appointment setter, purchasing agent for supplies, the computer guru and whatever else needs to be done.
When the computer goes down in the workplace, you don't have to worry about who comes to fix it or how much it costs. Not so when your own computer is your sole source of income. When you run out of paper or paper clips at the office, you simply put in a purchase order request and voila! it's done. With your own business, you order and you pay! Determine in advance how much you can outsource and to whom.
Benefits - Or Lack Thereof
As a salaried employee, filing your taxes is a pretty simple process. Not so when you are self-employed. It's much more complex. A good accountant will be invaluable.
Will you set up as an LLC? Or perhaps a corporation? What are the benefits? The drawbacks?
And what about health insurance? Will you be able to afford health insurance for your family if you no longer have a group policy from your place of employment? And are you even insurable on an individual plan? Check to see.
You no longer have anything remotely related to "sick leave." If you get sick, the work must go on. Until you have built up a viable stream of residual income (and that's the whole point, but it will take a while), you will be putting in long hours to get the momentum built up. You may be working when you don't feel too well!
The End of the Day
The mention of long hours brings us to another possible negative. If you are a highly-motivated individual (driven), it may be difficult for you to actually walk away from the computer and call it a day. Especially in the early days when you are building the foundations of your business. Your total attention given over to the business may cause distention within the family. It may require a family meeting to determine the boundaries. Consider agreements such as: If the family allows you so many undistracted hours, you agree to quit at a certain time and give your attention to them. Open communication will be necessary to make it work.
Office Area
While you may begin at the kitchen table, or in a corner of the bedroom, that will not be the best solution in the long run. Sooner or later, to be truly professional, you will need an office area where the business can be conducted. If that is not feasible at the present, set a goal for how and when it might become feasible. Possibly a garage or basement area can be converted into the office. Or an attic loft. Wherever it is, make it happen as soon as possible. Your success could depend upon it.
Be Totally Honest
If you long for the day when you can dump that job, and the boss, make sure your dream doesn't turn into a nightmare. Take a good honest look at every aspect of working from home. That means looking at the pitfalls right alongside all of the glorious benefits. If you understand all the negatives and in your eyes they pale alongside the benefits, then you're in good shape!
