Not willing to incur additional costs, most entrepreneurs run their business from the comfort of their own home. Doing so allows them to work their own hours and affords them increased scheduling flexibility. However, just because work-at-home business owners aren’t leasing office space, doesn’t mean that owning and operating a small business isn’t a costly and often risky venture.
Before starting your own business, it is imperative that you research the costs associated with running operations out of your home. For one, the average start-up company will at some point need to hire additional employees. These employees can’t exactly move into your home, and thus will most likely be working remotely. The problem is that it’s difficult to track the amount of time an employee spends working from a remote location. You run the risk that certain employees will fabricate the amount of time spent on a project.
One way to counter this is to place all employees on salary. Another is to operate a franchise, like A Buyer’s Choice. Franchisees are typically not responsible for hiring additional employees, and therefore do not have to spend the time and energy keeping detailed time-tracking records.
Security is another issue. Since so much of today’s business is conducted online, home business owners run the risk of getting computer viruses and even having their work stolen by rival companies. These issues are big problems in most offices, let alone businesses where the employees may or may not be working from the same room. In order to ensure the safety of your work, all of your employees must be safeguarded against viruses and be provided with work-only laptops. It’s an expensive solution to a problem most startups fail to address.
As a small home business owner, either you or someone you hire will be responsible for raising seed capital. If you’re handling it yourself, it will require that you leave work to visit venture capitalists and private equity firms. In the process, you will incur travel, meal and opportunity costs. You’ll also probably have to hire someone to cover for you while you’re away from the office.
Of course, if you choose to follow a franchise-based model, raising money won’t be a problem. For instance, by becoming a franchisee for A Buyer’s Choice, you’ll only be required to pay a one-time fee. You won’t be asked to raise a dime. Instead, all marketing materials, training and support will be provided for you. entrepreneur
Most entrepreneurs underestimate the miscellaneous costs associated with running a home-based business. Internet connections, bookkeeping programs, business cards: these are all things you’ll have to purchase yourself. And don’t forget the price of public relations.
Again, most of these costs can be avoided by operating an A Buyer’s Choice, or equivalent, franchise. Not only do franchises bring you up to speed on how to save money, they also provide discounts on essential tools and web space.
So yes, while running a startup home-based business can be a lucrative opportunity, it can also be a costly one. If you’re on a limited budget, consider either starting off slowly or purchasing the rights to a franchise.