If you think about starting a business, you probably imagine going to an office and managing some employees. In reality, more and more people prefer to have a home business and are looking for solutions to work remotely .
In today’s interconnected world and following the radical changes imposed, technology offers a wide freedom of choice on how and where to work; for this reason there are various possible ways to open a business in your own home.
You may need a room to be used as a warehouse for the products. But it’s not essential, as some types of home businesses are entirely manageable online . In principle, to create an online business you just need to take advantage of the space and means you have available
What is a home based business? pros and cons
A home business is a business — full-time or as a sideline — that you can start and operate using your home as a base of operations .
For some types of home business it is also possible to work while traveling . In fact, you are not tied to a specific place because these are activities that allow you to sell from home or from any other place you consider as such, without the need to purchase and manage an inventory .
Of course, you need to consider all the pros and cons to determine whether starting a business with no money and large investments in your own home is right for you.
What are the pros of starting your own home business?
Let’s see what are the positive aspects of this alternative working method:
- Fewer overheads (e.g. warehouse costs) and more tax deductions you can benefit from.
- Ability to sell products or services both locally and internationally.
- Flexible work-life balance, ideal if you are for example parents or retirees (you can read the article with 9 examples of great entrepreneur dads for inspiration).
- Possibility of creating a family business in which your relatives or your spouse can participate if you wish.
- Totally eliminated costs, times and stress related to home-office travel.
- Feeling of freedom and independence that an employee cannot give.
Open a business in your own home: cons
Now let’s see what are the negative aspects of selling from home:
- Need to adapt home spaces to the needs of your home business. For example, you may need space to create a home office , store inventory or work tools. The risk is to upset your private life.
- In any case, the need to comply with all the regulations related to the activity to be started. For example, a kitchen and warehouse with certain requirements if you intend to sell food products.
- Risk that the space in the house becomes insufficient. You may need to rent additional premises, for example to hire employees.
- A home business gives you a lot of freedom, but it can make you suffer from entrepreneur loneliness . This is especially true if you are outgoing and like being in contact with people.
- Running a fully self-employed home-based business also comes with a number of responsibilities that you wouldn’t normally have to assume if you’re an employee.
Does it seem to you that the pros clearly outweigh the cons and are you interested in continuing on this path? Well, let’s see the next aspects to consider.
Home based business ideas to put into practice today
Once you have carefully examined the pros and cons of the home business, if you have chosen to embark on this adventure, the next step is to try to understand which business may be most suitable for you.
Below, therefore, we offer you 8 ideas for opening a business in your own home
1. Selling bulk products from home
Many companies are based on a very simple concept : buy products wholesale and sell them retail to make a profit.
Perhaps on a recent trip abroad you have found unique products, not easily available in the country where you live despite the presence of a substantial market demand. Or maybe you’ve decided to focus on niche products because you know which ones are perfect to satisfy your audience.
Either way, provided the products are easy enough to store and ship, you might have a winning idea on your hands for starting your own home business and earning some extra cash . For example, by doing a quick search on Google Trends we saw that anti-reflective glasses arouse a certain interest over time and in addition they are small in size and quite resistant, therefore suitable for keeping at home.
You can even start using your home as a showroom — as Artemis Design Co. did — to sell locally; this allows you to expand merchandise and employee space only once your idea is validated, when sales start to take off.
2. Sell homemade products
If you’re a crafter (or know someone who is), consider turning your hobby into a home business. Perhaps you will need a special facility, such as a workshop, commercial kitchen, or shop, to manufacture products. But you may be able to use your home as a warehouse and retail outlet.
By controlling almost every aspect of production you will have some advantages. You can make products cheaper, improve their quality or meet the needs of a specific segment of the public, to satisfy market demand .
Whether you choose to sell on Etsy or build your own branded shop , selling your creations is still a great way to find your passion and share it with others, while also making money. Just pay attention to the regulations on cosmetic and food products if you decide to dive into this field.
Examples of handmade products you can sell include:
- candles
- Jewels
- Cosmetics
- Online art
- Foodstuffs
- Clothing
On the plus side, your own production doesn’t have to take too much on you. When you’re ready to expand, test a manufacturing process and hire employees to help you out.
3. Start a Dropshipping Home Business
So far, we’ve looked at home business ideas that require space in your home to store goods. But today it is possible to open a business in your own home without having to think about inventory and shipping.
These businesses use the dropshipping model, in which a third party produces, stores and ships the goods on your behalf. You just have to focus on two aspects: marketing and customer service
It doesn’t matter if the dropshipping supplier you choose is based in Italy or operates from abroad. The important thing is that it is reliable, so as to guarantee customers a great after-sales experience. Always exercise due diligence or risk compromising your corporate reputation.
There are also Shopify apps that can connect you with suppliers to import products into your store, making order fulfillment easier.
Start your own dropshipping online store with Shopify today. Try it for free.
Essentially, with dropshipping you become distributors of third-party products, as in the case of these two entrepreneurs who choose China to produce their products . You bear the costs of a good marketing strategy (in terms of time and money) and earn a margin on sales.
It is possible that the products on sale become inflated and offer little opportunity to personalize the customer experience . But fortunately, there are several ways to distinguish yourself from the competition:
- Select products from various vendors to create a store that targets a specific niche.
- Compete with quality content and customer service that adds value to products.
- Reach out to an underserved area of the world. In this case, pay particular attention to shipping costs and consider using epacket shipping to reduce costs and make them faster.
- Offer the same products to a new audience. For example, if you sell LED shoes, you can offer them to both music festival attendees and runners.
If you’re interested in learning more about starting a dropshipping business, check out our Getting Started Guide to Dropshipping in Italy .
