Starting a Home-Based Business

Have you ever dreamed about quitting your job and starting your own home-based business? Then grab some refreshments and settle in for this three-part series. Today’s episode covers the perks, the downsides, and gives you a general idea of what it takes to set up a home-based business. It also offers food for thought on what type of business, how to set boundaries with family, and ways to counteract some of the issues that working from home can create, such as isolation, depression, anxiety, and those dreaded interruptions. 

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Transcript

Welcome back to the porch! Have you ever dreamed about quitting your job and starting your own home-based business? Then grab some refreshments and settle in for this three-part series!

Working from home sounds like such a dream job.  We can get out of bed, grab a cup of coffee, sit at our desk, and never take our pajamas off.  If we have to let the dog out, we just stroll to the door. If the kids get sick, we don’t have to use vacation time to keep them at home.

Although those are some great perks to working from home, it isn’t always that simple, nor does it always work that way.  There are other factors to consider when first setting up a home business.

There are two different ways you can work from home.  The first is to work for a company who offers remote positions.  We may have gotten a taste for working from home during the pandemic, when many companies allowed employees to work remotely. But now, many of them are cutting out that option. But there are still some companies that continue to offer remote positions. Some options that come to mind are computer programming and web design.  Other types of businesses that may use remote employees are marketing agencies, Employee Assistance Corporations, and Insurance companies.  And there are a broad range of positions, including data entry, sales, customer service representatives, virtual assistants, and others.

The second option is to become self-employed.  With this type of home-based business, you wear all the hats – from CEO to Janitor.  The opportunities for these types of businesses are limited only to your talent, interests, and desires. 

 If self-employment is the way you want to go, you may need to prepare yourself for an irregular paycheck and a lack of benefits.  Until your business becomes successful, both can be non-existent for a while. If this alone doesn’t stop you, then there is a longer list of considerations you need to make.  Here are some things to think about, the first of which is the Psychology behind working from home.

There are some strong pros and cons for a home-based business.  Knowing what you can expect from the beginning can help you make the transition a little easier. 

Let’s talk about the pros first:

Probably the first and foremost benefit to working from home is no longer having a commute.  Rather than sitting in traffic and hunting for a parking space, you can easily apply that time to being more productive.  

There are also some financial pluses.  Not only do you save money on fuel, but also on clothing and eating meals out.  If you have children, there is also an option to have them come straight home from school and save the expense of day care.

Setting your own hours is a bonus.  You can schedule your workday around carpooling and other daily necessities.

Now for the cons:

For the first few weeks, working from home may seem like a blessing.  But eventually, that shiny coin flips, and you see the other side, which is the mental health aspect.

Anxiety. Depression.  Stress.  Isolation.  These are just some of the downsides to working from home.  If you are used to working in an office, your boss can easily see that you are being productive.  However, when you work from home, the only one that sees you is the family pet.  

You begin to worry that those you work for cannot see you are being productive.  There is the question of whether or not they are wondering if you are working, or sitting on the couch, eating Bonbons, and watching soap operas.  This makes you want to push yourself to be more productive. You add more hours to your work schedule in order to ‘prove’ yourself’. 

Isolation is also a big factor.  You have gone from an active office, where there are other people with whom you can interact.  At home, your work is confined to a small space, with only you and the dog.  

Even though you can set your own schedule, without some strict self-discipline, it is all too easy to ‘cheat’.  Before you know it, less income-producing work is getting done, and your personal life begins to encroach. Or you just get tired of it all and binge on reruns in front of the television.

If you have pets, small children, a spouse or roommate, distractions can easily keep you from getting work done.  Boundaries are shifted out of ‘guilt’ and can be difficult to maintain.

But there are several ways to work in and around all the pros and cons: 

The first thing you need to tackle is boundaries.  Your family needs to fully understand that although you may be at home, you also have to work in order to contribute to the family finances.  Put a calendar on the refrigerator with ‘office hours’ written in red.  Make it clear they are not to interrupt unless it is an emergency. This is truly easier said than done, but with time and reinforcement, eventually it should become less of a problem.

Next, you need to remember: Don’t Overload your Work Hours. When you set your schedule, give yourself definitive start and stop times.  If you are dealing with stress from fear that your boss feels you are unproductive, you may have a tendency to work longer hours.  To help prevent that, see if your company offers some type of productivity software, or send emails at the end of each day that outline the work you have accomplished.   

Then there is the isolation. Arrange your schedule to be able to socialize periodically.  Schedule lunch with a friend. Attend a yoga or exercise class.   Change your surroundings and take your computer to a coffee house or restaurant that has free Wi-Fi.  If you have other co-workers or friends who work from home, schedule a meeting at the park or a library.  Not only is this a great way to alleviate the feelings of isolation, but it can also act as a great brainstorming session. 

One of the ways I work around isolation is through online meetings.  I work with other bloggers who help each other to be Accountable and to stay current on blogging trends.  We also use this time to help each other overcome obstacles and to brainstorm.  I may still be ‘in my office’, but I am talking with other likeminded businesspeople. 

When you work for yourself, you have no choice but to wear all the hats.  First, you put on the hat as CEO.  You are responsible for all the decision making, accounting, marketing, communication, and the work that creates a successful business.  You are also the personal assistant, the secretary, receptionist, and at the end of the day, the janitor.  

You also have to take into consideration you will no longer have access to a fully stocked supply closet.  This means trips to the office supply store.  Taxes, both business and payroll still have to be considered and paid – even if you are the only employee.  

Once all that has been taken into consideration, you still have to work your schedule around your family, a social life and walking the dog.  

It takes a lot of time, focus and energy to get a business up and running.  The question you need to ask yourself is, can you do it?

An even better question to ask yourself is, “Who Are You, and What Do you Want to Be when you Grow Up?”

As children, we are frequently asked this question by adults.  But as an adult who is considering starting his or her own business, you need to take this question a bit more seriously. Here is a better way to ask this question:

What do I do best, and how can I turn that talent into a home-based business?  What pulls at my heartstrings enough to create that perfect musical score?

The best way to choose which ‘at home’ profession works best for you is to determine where your strengths lie.  Are you super organized? Fascinated with numbers? Love to write?   Determine what you do best, and then begin the search for a company that offers remote positions.

Don’t want to work for someone else?  Then start your own business.  It may take more time, marketing skills and research to do it this way, but it can be done.  You could also start by working for another company, learning the ropes, and then going off on your own.  Either way, you could eventually find an income-producing profession that fulfills you in ways you could never otherwise imagine.

I won’t go into a full list of things you need to do to set up your personal home-based business because there are so many. However, there are two main things you need to do to get started:

First, you need to create a business plan. It doesn’t have to be a formal dissertation, but it does need to answer the basics – Business Name, Mission & Vision Statements, Goals, Start-Up & Operational Costs, and a drilled down idea of how you can earn income.

Next, you need to consider the ‘Other’ numbers. When setting up a home-based business, you need to have things like a Business License, an EIN (Employee Identification Number) with your local, state, and federal entities, other licenses, permits and certifications.  All these come with a registration number.

Some professions require degrees, education, and a license to do business.  Some that come to mind are electricians, plumbers, counselors, and contractors.  If you want to become a home-based bakery, you will also have to get your kitchen certified and be subjected to inspections. With some home-based businesses, you may also have to adhere to your state’s Cottage Industry Laws.

For more information on setting up your own home-based business, a good place to start is with your local Small Business Administration office. The SBA often offers classes to help you get started.

Are you still considering a home-based business? One way you can test the water is to just dip your toe in.  Learn the ropes.  Take a class.  Read everything you can about working from home, whether it is for another company or as your own business.  Do the research.  Pay close attention to your local, state, and federal requirements.

Then do it on a small or part-time basis.  Bake cookies, cakes and muffins and see how well they sell in your area.  Offer your services on a small scale to see what kind of reception you get.  Then make your decision based on a well-established knowledge of what it will take, rather than on a whim of the heart.

If you still think working from home is something you want to tackle, stay tuned next week.  I’ll be talking more about Setting Up Your Office and The Rest of the Basics! And be sure to check out my Amazon Shop page for books and other products that can help you get started!

If you want to learn more about living a Simple Life, just visit my website at www.thefarmwife.com/ . If you’re enjoying listening to these podcasts, you can support the show by clicking the SUPPORT button in the show notes. When you do, you’ll be helping me continue bringing you fun and helpful ideas for living the Simple Life you love!

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Thanks again for stopping in. I will see you next week on Living a Simple Life with a Back Porch View. And while you are waiting for the next episode, grab that glass of refreshment, pull up a rocker, and sit back for a while. It’s time to relax and enjoy.