Everybody can figure out the advantages of working from home. From the time saved with commuting, to the money saved because of not needing business outfits anymore, we can all see why working from home is good. However, we tend to forget the negative side of the matter, which is the topic of today’s article.
Many times, working from home brings solitude. If your business is something you do on your own, with no team involved, you may end up longing for a community. It’s always fun to share ideas and brainstorm solutions in a group rather than doing it solo. You can involve your family and friends, but since they don’t know the specific details of your issues, they won’t be able to help you much. Besides, they might just want to do other things with you, not talking about your business.
When you run a home based business, you tend to neglect the way you look. Why dress up if there’s nobody else to see you? Why shower, when there’s nobody else but you to notice that? This danger is bigger than you’d think, but with a bit of attention to such details you can overcome it. Just don’t let yourself go with the flow of laziness, have strong principles and stick to them, even when nobody else is watching.
When you work from home, all your friends and family will think that you are always available for them, since you don’t have to go to a regular office every day. They will tend to ask you to do heaps of little chores and they might get upset if you refuse. This is something you need to make clear from the very beginning. You loved ones need to understand that working from home means that your home and office just happen to be in the same place. Ask them to respect your work schedule and not bother you with all sorts of requests during your work hours. Be assertive and you’ll have the things your way without having to break up with anybody.
Procrastination is another big danger of working from home. It is so easy to get distracted when you have a pile of dishes in the sink waiting to be cleaned, or when you suddenly notice your flowers look a bit sad and might need watering. You may say a few ten minute breaks can’t slow you down too much. You are wrong. You’ll tend to take way more breaks than you should, so you’ll end up by midnight wondering why you had to work that much. If you have the curiosity to write down your actual work time, you’ll notice how much time is wasted because you lose focus so often. Try to have working time chunks of at least 30 minutes, followed by 10 minute breaks. If you can, make the work intervals one hour long. You’ll notice a boost of productivity from the very first day.
Can you think of other downsides of a home business?
Drafting A Business Plan
If you intend making an application for finance to start your home business, you may be required to draft a suitable business plan. It is a good idea to draft a business plan even if you do not require a formal one, and use it for internal purposes and to remind you of your plan in future.
Why Do You Need A Business Plan?
• If it is your intention to seek external funding, you will need to provide the investor or financial institution with a business plan.
• Having a business plan allows you to remain on track and stay focused. You will have a tangible plan that you can refer back to on a regular basis.
• It will give you the final analysis of your potential home business which will allow you to see if it is feasible or not.
• It can help you recruit individuals or corporations to help you get your business off the ground.
This plan is similar to a ‘how to’ instruction book. It is a guide to successfully creating a business that will make a profit and provide you with sustainable income. From a more formal perspective, it is an analysis of your operational, marketing and financial plan.
Drafting a Business Plan
An informal plan which is for your personal use should include the usual business plan sections, such as:
• An overview of the industry you wish to enter
• A profile of your target market
• An analysis of your competitors in the industry
• A full description of your company, including its goals and main product
• A SWOT (strengths, weaknesses, opportunities and threats) analysis
• A marketing plan
• An organization plan
• Financial statements
If you need to draft a formal business plan, you should include all the above, along with a summary which will include a summation of all the points already covered. Make adequate use of this summary to promote your business and make it impossible for an investor or financial institution to reject your application for finance. Make sure that you bring out the passion that you feel for your home business. You must add a company description introducing your specific business and explaining its main product and its goals.
You may also be required to enhance the financial statements section as this is what funders will be most interested in. They will not provide you with funding if they cannot see an adequate return on their investment.
Add a market analysis section to your formal plan. This should indicate the industry you are entering, the target market and details about your competitors in the market.
You can choose to outsource the drafting of a business plan, or you can write it yourself if you feel confident enough. Doing it yourself will give you the insight into the document that is required when you approach an institution for funding. Once you have done a first draft, you should opt for a professional final copy, particularly if you are seeking funding. This may be to your benefit and it will ensure that there are sufficient details in the document which will increase the chances of you obtaining suitable funding.