HOME BASED BUSINESS: DEFINITIONS, STRENGTHS AND WEAKNESSES,

Maybe fellow readers have often heard the word home-based business. Yes, how not, a home-based business has actually been around since a long time ago. From the days of our grandparents were still small, home-based businesses already exist in Indonesia. The difference is, home-based businesses continue to develop, so that home-based businesses have increasingly varied types. Actually, what is a home business? Let’s discuss the definition of home-based business first together. The definition of a home-based business is any type of business which is located at the home of the business owner. In this case the business owner does not need to rent another place to be a business location, even business owners do not have to own a particular property. However, business owners must continue to run the business from the same place as where they live,

 

Although home-based businesses are only done inside the home, there are some people who work outside the home but can still be categorized as business people from home-based businesses. For example, a trainer or a software trainer, a truck driver and an interior decorator.

 

The three professions are examples of professions that can run a home-based business, but they do have to travel outside the home to provide and provide their services. Maybe your fellow readers are also wondering, what is a profitable home-based business like? The answers are many! The key is how each businessman creates and generates innovative ideas for their home business. Creative home business ideas become a special attraction for novice businessmen because through these brilliant ideas they will be inspired to open up new job opportunities for people who live around where they live.

 

The increasing creativity and innovation in home-based businesses, has led many people to switch from office work to home-based businesses. In fact, statistics show that there are more people choosing to run a home business than ever before. Some home-based businesses that are trendy and are still popular today include light food home-based businesses, home-based coffee drinks that are being loved by young people, crispy fried chicken home businesses that often become fast-food meals today, and home-based business souvenirs. promising for housewives who do not work in the office .

 

Some of the examples above can be recommendations for home-based businesses that your fellow readers might apply. Today, all opportunities seem to be wide open, ranging from small capital home-based businesses to those that require large capital. By the way, besides being a pleasant type of business, a home-based business also has some advantages and disadvantages, colleagues. According to the balance smb dot com website, there are several advantages and disadvantages of home-based business which we will explain in the following points.

 

Benefits and Advantages of Home Based Business

1. Say Goodbye to a Long and Tiring Work Trip. 

To everyone who runs a home-based business, this is the main advantage they will feel. They don’t have to go to work in the morning again, jostle in public transportation, or get stuck in traffic in a car. When compared with those who run a home-based business, their work trips are very simple. For example, out of the room to the living room or down from the second floor to the first floor where the home business location is located. Simple and fast, right?

 

Moreover, for Career Advice colleagues who work in big cities in Indonesia such as Jakarta. Wow, going to work every day will definitely feel very tiring and really draining energy and patience. In fact, this is not only happening in Indonesia, but also in the United States. According to a recent Gallup poll, workers in the United States on average spend 50 minutes each day just on work trips to their respective offices. So, now it is clear why this first point is the main benefit that will be felt by home business entrepreneurs?

 

2. Very Flexible Working Hours.

Not only avoid long work trips, but Career Advice colleagues will also have very flexible working hours when running a home business. Fellow readers can determine when your employees must work, when the right time for business operations for your home business, and so forth. In fact, fellow readers can also start work in the morning or just do it at night. All technology available in modern times such as cellphones, fax machines, laptops, tabs and so on will help us to interact with customers anytime.

 

3. No Need to Spend Rent for Business Locations. 

Another advantage of a home business is that it makes the home business owner more economical compared to those who have to rent a shop or other place as their business location. They also do not need to spend for maintenance costs of business locations that are separate from where they live. That way, home-based business owners can run their business calmly without having to think about excessive costs.

 

4. Measuring Business Needs Easier. 

When we choose where we live as a business location, this will make it easier for us to determine how many employees will be recruited, how many hours of work will be set, and when we want the operational time of the business. Let us compare between renting a shop with a home-based business. When the number of our employees becomes more and more, then automatically we need a wider shophouse. However, what if our shop contract is still long? Surely it will be difficult to set it, right?

 

But this will not happen to a home-based business, because we are not bound by a rental contract with anyone and we are also free to determine what things are needed for our home-based business.

 

5. Reduction of Income Tax. 

A wise person must obey taxes. However, what if a businessman does not want his income tax to be heavily cut by the government? Well, building a home business is the right solution for this. Having a home business will reduce the amount of income tax we have to pay.

 

6. Home-Based Enterprises Help Us in Testing Our Business Ideas. 

Don’t think that we will immediately have a small home-based business with big profits. All successful businesses and big luck certainly do not happen instantly, but it takes a long time. Statistics show that more than 50% of new businesses will fail within the first 1-2 years of existence. Try to imagine if we have to open a business by renting a shop. What if our business does not go well in the beginning? Surely this will harm us as a novice businessman. Therefore, running a home-based business will help us test our business ideas . If within a year or two years our home business profits are increasing, then we can think in the next direction, which is to rent a shop for a business location.

 

7. Have more time with family and loved ones. 

If your fellow readers have children, running a home-based business will give you more comfort and more time to be with them. Not only that, for fellow readers who play the role of fathers, you will also have a lot of time with your wife and children. No matter what your current status, running a home business will enable us to maintain the best possible balance of work and personal life .

 

Lack of Home Based Business

 

1. Home-based business is enough to make us feel isolated. 

Unfortunately, home business is not suitable for everyone , especially for those who like to move from one place to another. Many people feel that running a home business makes themselves more isolated from the people and the environment. In addition, some people also feel that the home-based business they are running is actually disturbing the peace of their family life at home.

 

2. Having to Negotiate Much with the Surrounding Environment in the Residence.

Home-based business does offer many benefits, but we also need to think about the people who live around us. For example, do they feel uninterrupted by the noise generated from our home business? Or maybe they feel the streets are becoming increasingly narrow due to the many operational cars from our home-based business. Therefore, the second drawback given by home-based business is the large number of negotiating processes that will occur between us and the surrounding residents.

 

3. Customers will find it difficult enough to find your business location. 

This can happen, especially if the location of our residence is indeed quite difficult to access, so customers who might want to survey directly to the location of our home-based business will find it difficult to find it.

 

What should be prepared to start a home business?

After listening to what are the advantages and disadvantages of home-based business, now we invite fellow Career Advice to find out what things need to be prepared to start a home-based business. Well, here are some important preparations that we should not skip.

 

1. Taking care of Legality for Home Based Business. 

Just like other types of businesses, home-based businesses also need to take care of legality. For example, we must choose the form of business ownership that we will go through, whether it is an individual, a partnership or a corporation. In addition, fellow readers need to register the business names of fellow readers, and need to have a business license.

 

2. Don’t Forget to Pay Attention to Environmental Suitability.

Think again, is the business idea that we have compatible with the environment around us? The problem is, most residential neighbors won’t like it if their neighbors have a home business with a very noisy engine. Even worse if there are many operational cars or trucks that have to go back and forth to park around our residence. Believe me, business ideas that are not in accordance with the environment around us will only cause divisions between us and our neighbors.

 

3. Consider the Suitability of the House We Own. 

Running a home-based business means using our home or residence as a place to work and do business. In this case, we also need to consider the suitability of the house we have. For example, is the kitchen area in our house enough to run a business of food and soft drinks? Or is the front yard wide enough to open a printing business? and so forth. So, make sure our home has a place that is adequate and comfortable, colleagues.

 

4. Pay attention to the appearance of the property inside and outside the house. 

In this fourth point, it does not mean that we advise fellow readers to live in expensive and luxurious homes in the same class as the nobles. However, we want your fellow readers to re-confirm whether your residence has a clean, neat and well-maintained landscape? This really needs to be considered, because we don’t want our home business location to be very bad to look at. If we just feel uncomfortable, what about our employees and customers later?

 

5. Ask your family, “Do They Agree If I Build a Home-Based Business?”

In running a home business, we are not the only people involved in this type of business. In other words, we will involve couples and children who also live with us. Try asking them, do they agree with our home business idea? Will children’s learning and playing activities be disrupted by this business process? What about our partner, whether he will feel his rest time is disturbed by the noise of the engine? Involve our family in every consideration that exists, before we actually run a home-based business.

 

6. Answer Honestly, Is Your Work Style in accordance with Home Based Business? 

Yep! Not everyone has a work style that is in line with home business. In fact, many home-based business people feel sad and constrained, as if they feel isolated from the life around them. If your fellow readers really like working with lots of people and like to move from one place to another, then rethink your home business idea.

 

In the end, if your fellow readers are willing to accept all the benefits and shortcomings of a home business, and feel they are ready to do everything that needs to be prepared, then this indicates that your fellow readers are ready to run a home business. So, what are you waiting for? Good luck doing business, Career Advice colleagues.

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