What Your at-Home Startup Should Consider Before Launching Merchandise

Wednesday, June 27, 2018

What Your at-Home Startup Should Consider Before Launching Merchandise

Many new and part-time entrepreneurs launch startups from their home to save on the overhead costs associated with renting or buying commercial property. While this reduces the financial risk of founding the company, it can also create several unique challenges that can hinder success if unaddressed.

Business owners need to consider the realistic financial, logistical and personal consequences of their venture before they begin production.

Mentally Separating Work and Life

Experienced home startup owners and telecommuters understand the importance of creating a mental, and possibly physical, barrier between work and life at home. Keeping business activity restricted to certain rooms, phones and computers in the household helps enforce this separation. Creating this kind of structured environment can also help preserve office equipment and makes it easier to track company expenses separately from the household’s finances.

Valuing Costs and Profits

Since cutting costs is usually the main reason people launch businesses from their home, it makes sense that even domestic startups should rigorously track their internal finances. Business owners should know exactly how much they spend on materials and how much labor is invested into each product they make. This information is essential for building a sustainable pricing model and eventually improving profit compared to manufacturing costs.

Another unique challenge of home businesses is lack of a storefront. Customers don’t see a name or casually work in the front doors as they explore a shopping center. This means that entrepreneurs need to double down on their marketing efforts, especially in the digital realm. Companies that product merchandise have several great ways to improve their visibility, including limited giveaways, connection with influencers and detailed definition of their target market, according to Entrepreneur.

Logistics and Storage

Even small businesses have to keep inventory and a supply of product on hand to accommodate anticipated requests. Home businesses that produce physical goods can quickly run into a space crisis, especially when facing growing customer demand. Business owners should consider investing in a long-term storage unit to hold merchandise. This can make life a lot more bearable at home and ensures that finished products are kept in a safe, clean environment until shipment.

Starting a business at home can be an exciting and lucrative adventure as long as the founders are fully informed and prepared. Drafting an official company charter and a detailed business plan can also help owners maintain a professional mentality despite the casual environment.

By  Hannah Whittenly Embed

Author Bio - Hannah Whittenly is a freelance writer and mother of two from Sacramento, California.


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