After Covid-19 pandemic and ensuing lockdown hit us hard, the work from home idea started gaining momentum. Even for entrepreneurs who were looking for a physical retail store, began contemplating on setting up home-based online business. So what is home-based business? It is a venture where your home serves as your headquarters.
As technology gifts us flexibility, online business can be operated even remotely. You don’t need to be bound to your home. You can operate it either full-time or as a side hustle and even your family members can chip in as and when needed.
In most of the home-based online business, people don’t purchase and hold lots of inventory. The most important feature of such business is usage of existing space and means to earn profit. Home-based business comes in wide variety. However, you need to think about your motivation, your goals and what you really enjoy working on before zeroing in on a particular home business idea.
Pros And Cons Of Home-Based Business
It is important to evaluate pros and cons of home-based business before making any decision.
Pros
- Low investment business idea with fewer overhead costs. You can claim potential tax deductions.
- You have option to make sale both in local and international markets.
- Ability to maintain a flexible work/life balance, which is perfect if you are a retiree or stay-at-home parent.
- An ideal way to establish a family business.
Cons
- Your business might require you to transform a space in your home into a warehouse- for holding inventory, storing equipment or a home office. The main challenge here is to do it without disrupting your home life.
- You might have to comply with regulations related to the business you want to start.
- If your business grows, you may need an additional space and also employees.
- If you like being social, home-based business might be difficult for you as it can give you a sense of loneliness.
Online Business Ideas
Below we have listed few of the most approachable ways to establish a home business:
1. Sell homemade products
You can transform a hobby or skill into a business. You can create, store and sell your products from the comfort of your home.
Being the maker of your product gives you a better control by reducing dependency. As you are able to control almost all the aspects of your product, you have the ability to improve their quality, make them more cost-effective and even mold them to suit the needs of a certain target audience. However, you still have to follow rules and regulations concerning the products you sell.
Below we have listed some handmade products which you can sell online:
- Jewellery
- Cosmetics such as lip balm
- Art and craft
- Food items such as authentic regional snacks
- Clothing items
- Candles
2. Provide your service or expertise
Though services are easier to sell than products, but the main challenge is time. “Time is money” and no one can understand it better than those who run a service-based business. Based on networking and word of mouth referrals, you can share your expertise. You do not need to rely on anyone as you expand your business. While some services operate on bookings and appointments, other services might require freelancing or working as a consultant with other companies. In some cases, you might also have to juggle multiple clients.
There is no need of large customer base as in case of product-based business. You can do well in service-based business even with handful of good clients as satisfied clients are most likely to retain your services.
Below are some of the ideas to start service-based home business:
- Tutoring
- Freelance writing
- Personal training
- Designing
- Marketing
- House cleaning
3. Become a content creator
You can become a content creator by creating your own blog, Instagram account, podcast and YouTube channel. If you have a sizeable audience, then you can grow your community and then monetise. You also have a chance of becoming an affiliate by selling products or services for a commission. Content creators also have the power to connect brands with audience through sponsored posts.
However, this isn’t the easiest home-based business, especially if you are looking for gain in short duration. You need to have passion and focus to build something around you love. Content creation can be one of the most enduring and fulfilling works. It even provides flexibility to explore multiple revenue sources at once.
4. Get started with print-on-demand store
Print-on-demand businesses aims at fulfilling the needs of a specific niche. You only need to find people who share common interest such as dog-lovers, plant parents, gamers or vegans. You do not need to hold inventory or ship it yourself while running print-on-demand business. Just customise products with unqiue and creative ideas or hire a talent if you need.
There is a wide array of products you can sell such as books, backpacks, mugs, blankets, hoodies, t-shirts, pillows, hats, shoes, watches and phone cases among others, depending on your supplier.
5. Buy products in bulk to sell
You can set up your business on a simple concept of purchasing products in bulk and then selling them online individually. If you have found a unique product which you can sell in your market or other market which has an appetite for it, then this idea is best for you. If your products are easy to store and ship, you have an additional advantage.
6. Buy an established online store
If you are one of those who is more interested in investing in a source of revenue that can be maintained remotely, then consider buying an existing online business. Prices of online store can vary based on multiple factors such as profit potential, assets availability like social media following and email list, etc., inventory, total revenue generated and more.
Some sellers can even teach you the ropes of their trade. Shopify has a marketplace ‘Exchange’ where one can buy and sell an e-commerce store. One can browse through the list and find a business that fits the budget and needs. Sales data can be verified through Shopify, so no need to worry.
