By Lorraine Warner

If you’ve ever thought about starting a home-based business, you’re not alone! Many other work at home moms have also given serious thought to venturing out on their own and working for themselves.

But the decision about whether or not to start your own business from home can be an intimidating one with many questions, none of which have easy answers. Here are some things you might want to consider:

Before starting your own business from home moms should first take stock of their current situation. Can you afford to take on the financial burden of starting your own home business? Do you have some savings that you can devote to the start-up costs of the new business, for example? Or other sources of revenue?

The reality is that a “strike-it-rich-quick” scenario, though possible, is probably highly unlikely. More likely is the slow growth of a real business that will require a lot of hard work and dedication for it to become successful.

In my case I was able to continue working at home doing freelance work, which helped subsidize the growth of my home-based manufacturing business. This was a major factor in my decision to move forward. I had the added security of a guaranteed income stream, which helped calm my concerns about “how to pay” for the start-up and other costs of a new business. Sometimes a mom can have a paying job to subsidize the new business, or have a spouse’s income cover expenses, while launching their own home business at the same time. Some businesses cost very little or nothing to start but may take some time before providing a steady income.

I think it’s helpful to have some sort of idea about what type of home-based business you want to start before moving forward. And although there are many “home-based business opportunities” out there to lure you, be cautious. Remember that old adage: “if it sounds too good to be true, it probably is.” Be sure to do your due diligence when considering ANY business opportunity. For the highest chance of business success and personal satisfaction and fulfillment, try to find a business doing something that is profitable, needed in the marketplace, and something that you LOVE.

Freelance income or your current employment can provide some of the working capital you’ll need to get started, but likely not all of it. Like so many other small businesses starting out, you may also have to explore loans or other sources of financing. Many home businesses don’t require huge amounts of capital to start like many other types businesses. An internet business, for example, may cost almost nothing to start. Moms who start businesses at home, such as some internet businesses, don’t have to worry about renting office or retail space, certain types of business insurance, furniture for an office or store, expensive equipment, company vehicles, money to pay for a large staff, etc.

Of course, quite a bit depends on the type of home business you are considering. Start up costs can range from a few thousand dollars (for a good computer and simple office setup) to tens of thousands for a home-based manufacturing venture. Whatever your business idea, be prepared to invest a good amount toward it, and know that it could be awhile before you realize a return on your investment.

Starting a new business often requires changes in a family that may involve more sacrifice from some family members or at the very least, some team work. Starting a new family business should be a family decision to avoid potentially very serious conflict in the future. Your new business is not more important than your family.

Where can I find more information and resources on starting a home-based business?

Once you decide to move forward your next step should be research, research and more research. Again, which direction you take will depend somewhat on what type of enterprise you are considering. Is it a manufacturing business for your product idea? Or perhaps a “service offering,” like a hair salon in your home? Whatever it is, you need to get your hands on as much information as you can before starting out.

Here are some tips:

For example, you may be able to ask your hairstylist how she got started working from home, what costs were involved (including insurance), any potential hurdles or pitfalls she experienced, etc. The same holds true for a home-based manufacturing business, although you will have other considerations (like patents, prototypes, etc. to consider as well.) Tap into whatever contacts you have and find out as much information as you can in advance.

To me this is even more important than a Business Plan, especially at this stage. After you’ve talked to some folks, get some numbers down on paper. What do your start-up and first year costs really look like? Look for all those hidden costs (like UPC symbols for products, and liability insurance) that you might not think about at first. Small expenses add up quickly, even if you will be running your new business from home.

If you don’t know anyone personally who can give you some guidance, try getting in touch with SCORE, which stands for the Service Corps of Retired Executives. You can visit their website at www.score.org where they offer free, confidential advice from business experts from every field. All of the major cities also have SCORE offices that offer workshops and seminars for a nominal fee on a whole host of business related topics.

Call SCORE, log on, or attend a seminar…become invested in your business idea and then find out as much information as you can from people who know the “business” of running a business.

At this point I think it’s also a good idea to go through the exercise of drafting a business plan. There are software programs available that you can purchase, and SCORE also has resources you can tap into.

While the template for a comprehensive business plan can be overwhelming at first, many of the points you are asked to consider (like your financing, sales goals and what research you’ve done on your competition) can be invaluable in helping to shape your thinking, and the direction for your home operated business. For many, the business plan will be a deciding factor about whether to pursue their venture further.

You can also check out the One Page Business Plan® at www.onepagebusinessplan.com. They offer sample business plans and a free template to download. While not as comprehensive as a complete business plan, the One Page Business Plan® may provide enough guidance and information to help you decide whether a home-based business is worth pursuing.

Good luck!

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Lorraine Warner has worked as a freelance prospect researcher and grant writer for the past ten years. She is also Founder and CEO of The Baby Owen Company, LLC, a start-up, home-based manufacturing business dedicated to producing high-quality, innovative baby and pet care items. A patent application was filed for The Baby Owen Company’s first product in early 2006. Visit their website at: www.babyowencompany.com

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