Running a home business is a dream come true for every entrepreneur. You not only get to do what you love but also get to spend more time with your family and loved ones. However, there are few hidden costs associated with starting a home business that you might want to keep an eye on to ensure a smooth journey.
Here are 4 hidden costs that you need to take into consideration while starting a home business
1. High-Speed Internet
If you’re starting a home business, then a internet connection is a must – for sending emails, video conferencing, giving customer demos, remote collaboration and more.
Generally, the home internet connection is used for casual browsing, video streaming and playing games. So it’s not as fast as the high-speed internet that you require in an office environment, for video conferences and google hangouts with your clients. Also, if you rent an office space then you can reactivate the internet connection left behind by the previous occupant and save on installation costs (routers, internet cables & installation charges).
However, if you’re setting up a home office, you’ll need to factor the cost of setting up a high-speed internet. When I setup my home business, I also rented a coworking desk where I was able to access high-speed internet for a nominal monthly fee. I used to visit it once a week for client demos and online meetings. This way I was able conduct high-quality video conferences without spending a bomb.
2. Office Supplies
Whether you run a home business or a private office, you’re bound to need basic office supplies such as office tables & chairs that you can use all day long, and even licensed software such as Microsoft Windows and Office Suite.
When you buy office supplies for an organization, you can avail discounted rates because you’re purchasing in bulk, something you can’t do when you’re starting a home business.
So, see if there are any other businesses in your neighbourhood that are looking to buy office supplies. Can you pool your orders to get a bulk purchase discounts?
Also, look into classified websites like Craigslist and online marketplaces like OLX for used office supplies that you can buy for much cheaper price.
If you live near a print shop or FedEx office, get your printing, scanning and faxing done there, instead of buying your own printer, scanner and fax machines.
3. Travel
If you run a home office, you’ll find yourself travelling more often, which can not only cost you money but also time.
Most office spaces are located in urban areas. If you have an office space, you can meet clients in your own office. Even if you need to travel to their office instead, you can easily take a bus to meet them.
On the other hand, if you live in the suburbs, you may have to travel to the urban part of the city to meet clients. Even a couple of hour long meetings in a day will cost you a lot. You need to pay to get to their office (via car, bus, Uber). If you own a car, you need to pay for the parking. If you meet them at a coffee shop or a nice restaurant, you’ll have to foot the bill.
All this travelling can also cost you time, that you could have, otherwise, spent growing your business.
So, if your business requires a lot of face-to-face meetings, then it might be a good idea to go for a coworking environment. You may not use it everyday, but it can be handy when you need it. For example, every week you can spend a couple of days there meeting your clients, and work from home rest of the time. This will save you tons of time & money.
4. Opportunity Costs
When you work as an employee or run an office, you get to meet new people and grow your professional network. This provides a valuable pool of contacts that you can leverage to get clients for your business, something you might miss out on, if you run a home business.
Employees also get invited to attend various seminars and conferences that help them develop their skills and grow professionally. They’re up-to-date about the latest happenings and news about their industry, thanks to their employers and colleagues.
If you intend to start a home business, it’s important to keep looking for opportunities that allow you to expand your network as well as learn new skills to grow your business. Otherwise, you can quickly find yourself to be isolated and outdated.
You can subscribe to professional social networks such as Meetup and EventBrite to keep track of the latest networking events in your city. Also, follow your clients on Twitter & LinkedIn to get an idea of which events they attend, so you too can join them.
If you keep an eye on these costs and keep your expenses down, you can start your home business with minimum capital and quickly drive it to profitability.
