Starting a Home Based Businesses is easy to dream about, but often hard to take the required action steps. 

There are always “legitimate reasons” why now is not a good time to open a small business from home.  Looking beyond the gloom and doom messaging, now is a solid time to start a work at home business.

A recent article  listed 5 reasons to launch a startup business.  The ideas were all good, but we wanted to take their ideas and apply it to starting a homeshoring business.

Reason 1: Lower threshold to entry

The article said: “Entrepreneurs don’t need as much capital to launch right now because resource and overhead costs are at or near historic lows in nearly every category.”  Absolutely true and even more so for home based businesses.

 Home based businesses have always had very low costs to start.  Since there is no rent and usualy very little equipment costs – a home based business is the best way to test your ideas and dreams.

Reason 2: Talent is Cheap and Available

From the article: “With the Labor Department reporting unemployment rates near double digits and more than five candidates per job opening, now is definitely an employer’s market.”  Great point – for a brick and mortar company, but home based labor costs are even better: it’s you!

Labor costs are often zero in the early days of a home business.  Often, owners have a primary job, their “day job”.  Their home based job’s revenues usually go back into buying more inventory or investing in equipment.  Over time they start to take money out, after the business is established.

This “Day Job Bootstrapping” is typical and often helps the business grow quickly.

Reason 3:  Taking a risk isn’t so risky

 If you have been laid off, is it really a risk to start a side business selling on eBay?  Is a soon to retire person who starts to work as a par time remote customer support rep putting their nest egg in harms way?

We believe the only risk in a home based business is not being realistic.  If you expect a six figure income right away – you’ll likely be disappointed. 

But if you are looking to use your free time to test out a business idea – there is no risk at all.  In fact, we started that way and watched our idea grow into a full time home based business.  We even had 3 people working for us – all remotely.

Reason 4: Your established competition may be weakened or gone

 This is more true in the brick and mortar business model than in home businesses.  You will find many products or services are competitive, especially with the recession.  Don’t use this as an excuse.

As you test and grow your business idea – you’ll learn what works and what doesn’t.  You can be nimble and try new ideas and products more easily.  Also, personal touches and emphasising service and support goes a long way towards your success.

Reason 5: Nowhere to go but up

From the article: “A small business that makes use of a slow economy as a trial period-to perfect their product or fine-tune their marketing-may be in a significantly stronger position once good times return.”

This statement resonated with us.  It is the core reason why now is the time to start your home based business and test your ideas.

Business will pick up and customers will start buying again.  If you start now, you will be an experiencde business owner – in a perfect position to succeed and profit.

Going Forward

We’ll be looking closer at the mechanics of starting out from home.  It is easier than you think and rewarding on many levels.