Starting a Work-at-Home Business (During a Recession)
Operating a home-based business is a lot of hard work and it requires careful planning even at the best of times. A comprehensive and well-conceived business model is absolutely essential to ensuring success, as is a strong work ethic and the ability to stay organized and on-track. In addition, you’ll need to secure the funding necessary to get your enterprise off the ground and keep it running until you start to get back into the black. While you’re no doubt going to suffer setbacks in the course of starting your business, you could have a much harder time getting things up and running due to the fact that we seem to be firmly entrenched in a long-term recession. Because of this, you may have to make some special considerations if you want to move ahead with working from home.
Your main obstacles are going to be getting financing, finding time, and building a client list. In good times, it’s not so hard to get a business loan if you have a strong background in the items or services you’re offering as well as a sound business plan. And there are always public funds available for women and minorities looking to start a small business. But with lenders looking to collect on defaults, the market for loans has largely dried up. Because of this, you will likely have to continue earning in other ways while you attempt to start your business. In other words, don’t quit your day job just yet.
Of course, this will definitely cut into the amount of time you can allocate to your budding side-business, which could spell disaster from the get-go. If you hang onto your full-time job and build up your newly formed company in your spare time, you might just find that you’re devoting a lot less time to the career you want than the career you have (even though you’d like to leave the latter for the former as soon as possible). It can definitely be hard to come home from a long day at work only to face several more hours of staring at a computer monitor. All work and no play…well, you know. But this is the type of dedication you’re going to need if you really want to make the switch to self-employment.
Building a client list is no walk in the park, either. You’re going to have to put yourself out there and hustle for work. This will require a lot of time on your part (even aside from the time you allocate for each project) and probably a lower rate than you would normally charge while you develop a brand image and a good reputation. Once you have secured some repeat business and you’re starting to get more work than you can handle, then you can think about raising your rates and quitting your job, since you will have some measure of security in your new endeavor. Until then, you’re just going to have to batten down the hatches and work your butt off. Starting a home-based business in a recession is not ideal, but it can be done with a little planning and a lot of dedication.
Jennifer Kardish writes for Noel Qualter, a UK magician who performs at corporate events, weddings, product launches, balls, banquets and more.
Image source: workathometyping.org