Four Misconceptions about a Homebased Startup

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It’s a not so bright and early Monday morning and after a relaxing weekend at home, you’re dreading the fact that very soon, you’ll get in to your car and head to work. It’s not a job you particularly like and given the opportunity to run your own business, you’re sure you could do a better job and make more money.

The good news is that you might be right. When you don’t work for somebody else, all of the profits from your business startup go directly to you and along with that comes a little bit more freedom.

Before you quit your job to work from home, here are a few facts you should know and characteristics you should naturally process:

Only a Little Freedom

The idea that you get to be your own boss isn’t true. If you’ve worked for a company throughout your life, you’re used to having a boss but even the CEO of your company answers to somebody. As a home based business owner, your boss is your customer and that means meeting deadlines, showing up for work to deliver the product, and assuring quality. Especially at the beginning of your business, you’re going to work just as much as you did at your old job.

It’s a Real Business

Your home based business is just as official as your old job. That means you can be sued, file for bankruptcy, and find yourself in trouble with the IRS. For this reason, it’s important to form an LLC with your state to separate your business assets from your personal finances.

How’s your Personality?

Nobody can tell you if you fit the mold of a home based worker but for some, the allure of working from home may quickly wear off. If you like to be around people, the solitude of working from home may not be right for you. If you’re not naturally motivated or find yourself distracted by personal responsibilities, keeping your current job or starting a business that gets you out of the house may be best for you.

Do You Understand Business?

Just because you’re a top-notch computer programmer doesn’t mean you’ll be successful as a freelancer. Entrepreneurs are first, skilled salespeople. They’re also accountants, secretaries, and custodians. Focus on learning how to run a business as you equip yourself to go out on your own.

Bottom Line

Many people do well as home based entrepreneurs but it’s not for everybody. Before leaving your current job, start your new business as a part time endeavor to see if you enjoy the work. If you do, the business will naturally grow in to something that is full time.