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Knowing the exact costs of starting and running your business is very much important before you take a start because you can set a clear and achievable goal only when you know what it takes to do so. Consulting businesses normally do not require a large capital investment at first. By this very statement I mean you start your consulting business while remaining in budget.
This article will detail you about all possible investments that you need to make initially as well as the running or operating costs. We will also discuss the points through which you can eliminate some huge expenses or cut startup costs at most.
1- Office Setup: of course it depends on the location you select. You may think of starting as a home office, but if you are able to, must consider operating out of your home.
2- Overhead Expenses: if you are operating from home then, of course, you don’t have to worry about rent and utilities, but when it comes to a separate office, add these expenses to the list too.
3- Salaries: No matter you are operating from your home or have a separate setup, if you need and have a staff, you need to pay them. Experts recommend outsourcing as it will save you the setup cost for staff. Moreover, you will save a lot of overhead costs while outsourcing.
4- Licencing Fees: Depending upon the nature of consultancy business you may require certain specific licenses. Moreover, these fees vary from state to state, and of course country to country, so it’s better to get in touch with a local office of the state department or local chamber of commerce for accurate details. Licencing and permits also require you to file documents in a professional manner for which you must consult an attorney because he can save you a lot of money and time.
5- Other Expenses: of course you will have to travel, i.e. to meet people and to entertain them with tea/coffee if they visit you, so keep a petty cash account for that.
Besides saving a lot of costs with a home based setup (till you get a good clientele) there’re lots more benefits of operating from home. Flexible working hours, no rush-hour nightmares, tax-deductible setup etc are some of the most common advantages. So, do consider operating from home if you have a limited budget and you are new to the business.
Starting a business from home is an awesome idea, not just for moms and dads but for everyone else who is looking for flexibility and work-life balance. But, it’s not challenging free zone!
In fact, home businesses have their own set of challenges which at times may go beyond control if not identified and dealt with time. Ideally, you must know the common challenges that people face while starting their home business and avoid all such.
This article will discuss the major mistakes and the challenges of starting a business from home. Here goes the list:
1- Boredom & Loneliness stand as the number one issue of people who work at home. Mainly, they are not prepared for the isolated working environment and end up frustrated. The best way to deal with such situation is to take time away from your home office, i.e. face-to-face meetings, lunch, networking events etc.
2- Working too much is another big issue. At times you are so excited about your business that keeping a 24-7 work schedule sounds very good. But that’s how you’re going to overheat yourself! Do take some time for other stuff, i.e. exercise, entertainment, socializing etc.
3- Interruptions are very common in home business. It’s not bad to take a phone call or two from family and friends, but continuous disturbances will get you out of focus. Turn your personal phone silent during office hours!
4- Further there’re some other unavoidable tasks, i.e. cooking, laundry, cleaning, childcare etc. which must be managed effectively. You can either hire a maid or else specify time slots for all these tasks.
5- You may be depending too much on your loved ones and so discuss your business issues with them for a good advice. But they might not be the right people to take advice. Better is to connect with the experts and take all your business related issue there!
6- If you are planning for home business and do not have a separate work area, it’s going to kill your business right from the roots. Even if you live in a small house, set aside a space reserved almost entirely for work.
7- If you have employees in your home business, you may be risking damage to your home if you don’t establish rules for how employees should behave there. Create proper employee rules and ensure that they follow the same.
8- Some people misunderstand home business with plan-less days which is not just the major factor for failure but will also make your personal life disturbed. No matter how big or small business you are operating from home, you must have your every day planned!
9- Some people think that they can be productive with the tuned in TV, and that’s a big distraction among all others. Just “tune out” the plasma screen on the wall and better is not to hang it anywhere near where you’ll be working.
10- Inadequate storage components may mix up your business-related items with personal ones. So, make sure to have certain storage space especially for business items.
11- Some people choose the low and inefficient equipment to save the costs, but actually that just slows down the business process and you may end up closing it. Do invest in high-quality equipment.
I hope, the above list will be helpful for you in setting up a productive home office environment!
About Author: Veronica Sandberg
I am a home based business coach with years of experience in empowering hundreds of people to find their true potential and changing their lives for the better. I am a proud working mother of three beautiful daughters and I love building relationships, coaching, training and supporting the community