Home-based or lease a commercial space?
Things to consider in putting up a home-based business.
By: Atty. Reeza Singson | Apr 22, 2012 09:00 am
Q: My husband and I are thinking of putting up a small business . We already have something in mind and the plan is slowly starting to shape up. To save on start-up costs and monthly overhead, we initially thought about setting the business up in our own home. However, we are now having serious misgivings about this. Our house is in a very private residential area . We fear that the location might not be best in terms of attracting customers. On the other hand, if we lease commercial space, it might eat away our start-up capital. Please help.
A: Due to the economic slump , more and more entrepreneurs are considering small-scale businesses run from home. It is not a bad idea, although there are a number of things to consider before you jump into it.
What you have in mind is a microbusinesses, also sometimes called a mom-and-pop business. This simply means it is a business operated by a single family which typically has no employees other than the owners themselves. Its biggest advantages are obvious: no lease and no salaries to pay. A less obvious but still desirable advantage is there is less paperwork to do before you can start operations.
Now we come to the undesirables. There is just one big disadvantage as you say, and it is lack of visibility. With careful planning and a lot of creativity, it is something you can easily overcome.