Dos
- Research and planning
There is a lot to learn about running a business. Do it badly, and you could waste time and money, and in the worst scenario go bankrupt. Do it well, and you could make a lot of money and achieve the lifestyle you hope for. What makes the difference between doing it badly or well is the quality of your research and planning. The main point of producing a business plan is for you to minimise the risk of failure and increase your chances of success. The primary user of a business plan, therefore, is you.
- Build on your successful past
It is very rare that people are successful when they embark on a completely new venture. Recognise what you have done in the past that is successful, and build that into your new home business in some way to significantly increase your chances of success.
- Manage boundaries carefully
When you go to work, there are many unconscious boundaries that help keep your work performance high, and you and your family happy. When you are working at home, these boundaries are not there, and it is particularly difficult for your family to respect them, so you have to put them in place.
Have physical boundaries: eg: an office that is separate from the rest of the house, and a separate phone line for business. Have time boundaries: decide on your working hours and keep to them. Have psychological boundaries: dress differently when you are working.
Don'ts
- Believe the promises made in unsolicited letters/emails
There are plenty of scams out there
- Hand in your resignation... yet
Your employer may offer a scheme that allows you to work at home.
But even if you are intending to give up your main job, it is advisable to run your home based business alongside your main job for the time being, until you know you are generating enough income. It is hard work in the short term, but it significantly reduces the financial risk and stress involved
- Invest unnecessarily
There will be plenty of calls on your finances. Spend money on those things that will help you grow your business, defer the 'nice to haves' until you are generating plenty of income.
- Ignore the bank manager
Your bank manager may ask you some awkward questions. Despite the public image, most bank managers are actually quite reasonable, and want to make sure that you are getting your business off on a good footing. Producing a cash flow forecast may not seem like fun, but it will massively increase your chances of staying in business. Making yourself accountable to the bank manager will be good for you and your business, in the long run.