Home based business is the fastest growing industry in North America and perhaps the world right now. Having owned several small businesses in a variety of industries, I truly know the contrast.
1. Even though I started the property management business in my home, it was far from ideal. A proper small business seems to require a separate physical office. It simply looks more professional for guests checking in to their vacation lodging and home owners requesting professional management. Having an official office in a business setting requires paying rent. Along with rent usually comes utilities and office furniture. Some leases even require a percentage of the building taxes and insurance as an additional fee. Also some leases require a percentage of your gross income as payment to the landlord: this is commonly referred to as a triple net lease. READ YOUR LEASE FINE PRINT CAREFULLY.
2. Other expenses with an official office outside of your home are a business telephone, computer, printer, liability insurance and some signage to let people know your business name. Depending on the nature of the business, you may also have inventory. Inventory could include office supplies as well as products to sell or products used in service to your customers.
3. Since you will be traveling from your home to the office, you will also have vehicle expense.
4. Employees are a complex issue. Federal unemployment, state unemployment, social security, possible health care insurance, payroll preparation expense and the actual salary. Sick pay, vacation pay and supervision time and expense are also to be considered. Since I owned a property management company in a world class ski resort, there were powder days when employees simply did not report for work or could not be located performing their assigned duties.
Home Based Business
1. Use a room in your house. No rent, office utilities or leases to consider. You might have to get some basic office furniture.
2. You will need some basic office supplies, a computer, a printer and a telephone.
3. No vehicle expense since you has a 30 second commute from your bedroom to your office.
4. Probably no employees.
The differences are dramatic between a home based business and a small business in the set up expense and ongoing monthly expense.
26 years experience as a successful entrepreneur, post-graduate degrees in Communication and Alternate Dispute Resolution, and a proven track record as a teacher, coach and mentor, revealed the success formula.