When you need a cake for an event, you can get all the ingredients and get it mixed up yourself, or rather buy an already-baked cake from the supermarket or elsewhere. Starting a business from home offers a similar option.
You can build your home business from scratch, or simply buy one that has already been developed by another person. All you need to do is make a decision and go on with your business.
Below are some pros and cons, and certain things to consider as you resolve on what business you want to venture into, and whether you would have to buy it or perhaps start from scratch.
Pros of Starting Out a Home Based Business from Scratch
By starting a home based business from scratch, you are simply coming up with a concept, assembling all the resources to start it yourself, and creating a personal product or service.
There are a lot of benefits to derive from taking your own concept and turning it into a thriving home based business and these include:
- Potentiality to be more creative
- How you can manage your home business and control your concept
- Low capital, particularly for service-based enterprises
- More flexible time to recoup expenses or loss
- Opportunity to leverage your expertise, knowledge, and passion to come up with your vision
Cons of Starting Out a Home Based Business from Scratch
- Like other things in life, there are some drawbacks to starting out a home business from scratch and these include:
- You must set up your own plans and systems for running and organizing your home based business.
- You directly have responsibility for all areas of your business including the development of a service or product, coming up with the promotional materials and marketing plan, having your products distributed and lots more.
- Achieving success can take longer because of more complex learning curve.
Pros of Purchasing a Home Based Business
If you don’t think you have something to start with, there are a couple of different ways to buy a home based business such as joining a direct sales firm or business opportunity, purchasing an existing business, or acquiring a franchise. There are several advantages that accrue to buying a home business, which include:
- The services or products already exist, as the promotional materials and marketing plan do.
- Brand recognition, particularly when purchasing a franchise business or direct sales.
- Specialist help and available training to impart what is needed to be done, and get questions answered.
- Operating systems (OS) already exist.
- Faster and better path to reduced risk of failure and profits due to the fact that the business has a success story.
Cons of Purchasing a Home Based Business
There are a couple of barricades to take into account when purchasing a home based business, which includes:
- Less control on how the business is operated – While coming up with an existing marketing plan you can follow up with is useful, it can, of course, restrict the extent to which you run the business. Several franchises and direct sales firms have restrictions and operating rules you’re expected to comply with. Some have even got territories to limit where you can operate your business.
- Cost of buying the business – while a direct sales business can be afforded, purchasing an already-existent franchise or business can cost hundreds of thousands of UK pounds. And there is the purchase of inventory, some special equipment, and marketing resources.
- There may be undisclosed issues, particularly in purchasing an existing business. For example, an already-existent business might currently be undergoing financial threats. So, this is part of the drawbacks of buying a home business. You could buy it today and it goes out of business the next day or week.
Which Home Based Business Option Is Most Suitable for You
There isn’t one most suitable option when it comes to choosing a home based business. But you can, of course, decide on what is most suitable for you. Things to take into account include:
Selecting a business concept should be considered first in determining an option you are interested in.
A lot of people look for the profits, but you should try focusing on passion over profits. Venturing into a business that does not interest you, or that you don’t really have passion for, is a roadmap to failure.
For example, if you are passionate about pets, you can start up a pet blog, sell dog breeds, or sell eBooks on keeping dogs, all from scratch. Or you can rather join a direct sales firm that sells dogs or any other type of pets you have passion for, or buy an existing pet blog.
You should be able to determine how much money you need to start with. Direct sales or starting from scratch is commonly the most affordable while purchasing an already-existent franchise or business can be very expensive.
However, the expense is not even the capital. You’d want to consider the running costs of the business in particular, such as inventory, marketing and advertising, and other meaningful expenses involved in the entrepreneurial business.
Would you want to set an operating rule and simply do as you desire? Then either buying an existing business or starting from scratch is good. If you’d love to dive into an existing system and structure of the business, buying a franchise or direct sales would be a preferable option.
You can take courses, get books, or get a coach to start a business from scratch, but literally, purchasing a business can have some training attached. Direct sales go a long way, and provide you with a sponsor and access to some people in the industry who have become successful entrepreneurs.
Now, you must determine where and how you would like to work. Do you want to operate the business completely online? Should you rather have direct contact with customers? You can start from scratch or perhaps buy an online venture, but most franchises and direct sales require in-person operations, even if they have virtual materials.
Are you planning to run the business full-time or part-time? Would you prefer to operate on a fixed schedule? Most home based businesses offer some flexibility, even though not all of them. You may likely consider the management time and capital as you perform research about your option.