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Getting Started with a Home Based Business

Is a Home Based Franchise Right for You?

While staring at the sea of cars in your workplace parking lot through your non-functional office window or, worse, at the cheap yellow polyester covering your cubical, have you ever daydreamed about starting your own business? If the answer is "yes," you are one among many; forty percent of Americans have considered starting their own business but have not done so yet, according to Office Depot's Workplace Trend Survey conducted in February 2004.

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For many, the pros of going into business for yourself appear to outweigh the cons. The U.S. Census Bureau reported that in a typical work week during the spring and summer of 1997, 9.3 million people put in at least one day's work at home. Greater personal freedom and the ability to spend more time with family are cited as among the top benefits of working from home.

Is a Home Based Business Opportunity Right for You?

If thinking of becoming your own boss conjures up images of playing hooky to soak up the sun at the beach or embark on extended vacations to exotic destinations, perhaps your efforts would be better spent seeking a wealthy spouse or playing the lottery. While working from home does award more personal freedoms, like the random brisk walk through the neighborhood or being able to schedule a doctor's appointment without coordinating with your coworkers, being your own boss takes discipline. If you are easily distracted and can't fight the urge to turn on the television, you may not want to walk away from your steady job just yet.

"The biggest challenge is focusing on work," said George Knauf, consultant for Arkansas-based FranChoice. "Some people are not right for a home-based business. They get too distracted. If you are at home with one, two or even three kids they may distract you. You need to be able to set aside time to focus only on the business."

On the flip side there are some people who feel isolated working at home. "Sometimes having other people around is nice," said Knauf. "On occasion you may have to leave your home office just to be around other grownups."

"More people try it and like it than not," said Joe Ewart, vice president of sales & marketing for CruiseOne & Cruises Inc. "However, there can be a sense of isolation working from home." However, there are home-based businesses that mandate live human interactive, such as careers in the travel industry. "If you want to be successful in our line of work you can't stay home. Our consultants go out to Chamber of Commerce mixers and other events-they hit the ground running and network."

If you are wondering what kind of business you can start based on your current level of education, training and professional experience, there are numerous avenues to pursue. Knauf and Ewart agree that it is often preferable to start with a good business sense but not necessarily a specific background that aligns with your chosen business. CruiseOne, for instance, looks for business oriented individuals that can be taught about the cruise industry, not necessarily travel agents with years of experience. "We have 440 members who come from all kinds of cross sections," said Ewart. "We have stay-at-home moms, former franchisees and executives."

Getting started with a Home Based Business

Even though you are considering a home-based business and may not need a high ticket loan, you still have to do your homework and write a business plan. "No matter what kind of business you plan to start, you must spend some time planning your strategy," said David Caplan, entrepreneur and author of How to Start a Business for Free. "By spending some time outlining the various steps you will take to lay the groundwork for your business and get it moving, you will also prepare yourself for a much stronger, healthier business. A little planning will help you a lot in the long run."

If you are not sure how to get started with your business plan, check out a book that provides examples or search the Internet. How to Start a Business for Free provides an example of how to set up an executive summary, business objectives, competitive advantages, marketing plans, and sources of revenue. The Small Business Association offers an example of a business plan on their Web site, www.sba.gov. Type "Business Plan For The Home-Based Business" in the search field.

Joe Ewart recommends that would-be CruiseOne consultants or anyone considering a home-based business decide if your home-based business will be a part-time or full-time endeavor and whether you anticipate earning a living wage for your operation or only a supplemental income. "The reason to open a Subway, for example, is to make a living," said Ewart.

NEXT: Your Home Office and Financing your Home Based Business

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