For some of us, a 9-5 office job is just a means to an end, with being our own boss as the goal. This is why more and more people are either freelancing or starting their own businesses.
In fact, 2% of the Filipino population are freelancers as of 2018.[1] Small enterprises also take up over 9% of the total businesses in the country. And since the pandemic started, the number of registered online businesses in the country also surged from 1,700 (in January to March 2020) to 75,000.[2]
Maybe it’s time for you to explore those home-based business ideas and start one today. Like any business, it can be challenging. You have to consider your skills, target market, and capital before starting a business. But if you want to jump-start your dream of becoming your own boss, you can start exploring some profitable home-based business ideas.
What is a Home-Based Business?
The meaning of a home-based business is pretty self-explanatory—it’s any business that you fully operate from home. Regardless of the business type or the size, it’s considered home-based if its primary office is located in a home you live in.
Why Should You Consider Having a Home-Based Business?
There are so many advantages of home-based businesses. Aside from having the skills, resources, and motivation to start a home-based business in the Philippines, here are more reasons to start one.
1. No Need to Commute or Drive to Work
Since your office is right at home, there’s no need to wake up so early to beat the morning traffic or catch the next bus. This saves a lot of time, which you can spend on more worthwhile things. Because you don’t need to travel to get to work, you also save money on gas, toll fees, and fares.
2. Lower Startup Costs
Since you’re running your business from home, you don’t need to put out a lot of money to get your business started. Compared to opening a brick-and-mortar store or office, your startup cost is low when you start a home-based business.
Some home-based business ideas don’t even require capital to start, especially if you already have the skills or equipment needed. When you have the equipment, furniture, phone lines, and internet connection set up, you can already start your business.
3. Lower Overhead
Unlike having a physical store, starting a business from home means paying only for your utility bills, rent, or mortgage. There’s no separate office to manage, which means more savings on your operating expenses. You’re using resources that you already have to make money.
4. Less Risky
Since having a home-based business means lower startup capital, you don’t need to shell out hundreds of thousands to get one running. There’s no need to construct, rent, or manage a physical store, so your investment is also smaller.
5. More Freedom and Flexibility
Another advantage of home-based businesses is enjoying more personal freedom. You can multitask during your downtime and set your own schedule. Since you are your own boss, you can take breaks or vacations when you want to and make business decisions as you see fit. Moreover, there’s no dress code and office politics!
6. Do Something You Love
Your home-based business can be the start of your dreams coming true. It’s an opportunity to discover your other talents, hone your skills, and give birth to your passions. When you have the flexibility of running your own business in a place you love and feel safe, it can both be a great creative outlet and income-generating opportunity.
7. Opportunity for Self-Discovery and Self-Growth
As the boss of your business, you get to wear different hats. You learn many aspects of running a business, from selling and record-keeping to customer service and advertising. With every customer you talk to or with every sale you close, you learn something new. Not every day will be a good day for business, so you’ll also learn a lot of lessons personally and professionally.
8. Unlimited Income Potential
Unlike being a full-time employee where you know how much you’re going to receive every payday, the income potential is unlimited when you have a home-based business. And you don’t need to wait for a promotion or a raise to get the income that you deserve. Just work hard and you can achieve it!
Disadvantages of Having a Home-Based Business
If there are benefits to having a home-based business, there are also drawbacks that you should know.
1. Uncertain Income
As income is directly proportional to the amount of work you put in, there may be times when you won’t hit your target sales due to personal or professional reasons. Maybe you’re feeling sick or having a bad case of burnout. Or there may be some issues with suppliers or your online store. These things can affect your business operations and ultimately your income.
2. Reduced Benefits
Since you’ll be running your own home-based business, you won’t be getting the same benefits that you did when you were still working a full-time job. Not only will you pay for it on your own. You’ll also need to provide employee benefits and pay mandatory government contributions if you hire your own staff.
3. More Distractions
Unless you’ve set up a separate place in your home where you can tackle work-related stuff, running a business from home will be filled with distractions. There will be kids that need to be attended to, food to be cooked, dishes to be washed, and many other household and family responsibilities.
4. Can Interfere with Your Family Life
Home is where your work is, so it won’t be so easy to switch from boss to mom or dad just like that—especially when there’s just too much work to be done. You can end up working longer hours and taking away precious hours that should be spent on your family or on yourself.
5. More Work
When you’re just starting out your home-based business, it’s usually just a one-man show. You’ll perform all kinds of business-related tasks, either because you know how or you still can’t afford to hire people to do them. But as the boss, you should know how to do everything and do everything well.
What is the Best Home Business to Start?
The best home business should meet your most important requirements, which may include the following:
Provide good income
Offer flexible hours
Give you independence and enable you to achieve a work-life balance
Have low startup and operating costs
Be something that allows you to use your skills, knowledge, and experience
Be something you’re passionate about or very interested in
Source: www.moneymax.ph