Disadvantages of a Home-Based Business
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Disadvantages of a Home-Based Business

There are some problems associated with running a business from home. You'll have to deal with all kinds of interruptions during the day - charity seekers, door-to-door salespeople, phone solicitations, and unexpected callers, often in person, who know you're home and assume you can "spare a little time" for them.
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There are some problems associated with running a business from home. You'll have to deal with all kinds of interruptions during the day - charity seekers, door-to-door salespeople, phone solicitations, and unexpected callers, often in person, who know you're home and assume you can "spare a little time" for them. Every interruption breaks the concentration of the home-based entrepreneur and makes it that much harder to continue with the task at hand or to complete it in the budgeted time.

There are also a lot of in-house distractions. You may never have thought of washing the car, cleaning the basement, or mowing the lawn until you've been bogged down in a project and needed an excuse to get away from work for a while. These chores may suddenly seem more enticing than the difficult business of making your venture a success.

You may also have a problem attracting employees - whether you need full-time, part-time, or temporary workers - to your home-based business. Most full-time workers are interested in job security, and, let's face it, a home-based office doesn't present itself as a very secure enterprise. Legitimacy is a big issue among individuals who are seeking employment and agencies that provide temporary workers. No matter how elaborate your work area is or how separate it is from the living quarters, most people you deal with will have that question of legitimacy in the back of their minds.

This image problem can make it difficult to deal with suppliers, subcontractors, and distribution sources. They're often reluctant to deal with home-based entrepreneurs. They will want your business, but they will also want to be sure that they're going to be paid. After all, they're in business, to make money as well, and they can't afford to deal with businesses that don't meet their obligations.

Despite the popular notion that real businesses exist only in lavish corporate environs, home-based ventures can be prosperous, especially when the business you're in doesn't require customers to visit your office. Service businesses, such as interior design or event planning, are perfect for home-based operation because owners visit clients on their premises. A mail order business is another option. Distribution channels are through the mail, so all you need is a central location with adequate storage space for your inventory of goods.

To improve the image of your home-based business, you can create the illusion that you are located in a business complex by renting a box from a private mail box center and advertising that address as your business' central location. For instance, you can rent a mail box in Newport Beach, California, and advertise your mail box number as a suite number. By hiring an answering service and providing instructions on how incoming phone calls are to be answered, you can make callers think they are dealing with a large, established company.

The point is, there are ways to overcome the obstacles and maximize the benefits of operating a business from your home. By preparing a rock-solid business plan, taking advantage of current technology, using effective marketing strategies and promotional tactics, and enlisting the help of individuals and information sources that can increase your knowledge of their market or industry, you can create a successful home-based business.

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Comments (2)

well said.

Some good points there Levi. My home office is in the attic of my house, so people can just knock and have no idea that I am home. Anti - social of me I know, but one has to stay focused.

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