There are two sorts of home business: those where you are extending a hobby or interest so you can bring in a little cash, and those where you are starting up something that will be a main source of income.
Decisions are easy if you are just exploring the possibilities from your hobby, but won't be relying on the income.
If you knit, for example, and always will, the chances are you will be happy just to pass on the products you are making to someone who appreciates them and to make enough to pay for the materials.
Do not expect to make more than a minimal profit on hobbies.
You just have to walk round any craft fair to see why.
To continue with the example of knitting, for every stall selling exciting and eye catching sweaters there are five or six selling nice but quite run of the mill scarves, baby jackets, gloves...
Competition is high and prices are low.
However, if the money is a secondary issue for you, then selling at local craft fairs and on the internet can be an interesting activity that helps to cover your costs.
Of course, some people do go on to make a good living from a hobby, setting up a gardening or home decorating business, or selling jam through a farm shop, and some go even further and manage to sell to a national store, but these are very few and far between.
The alternative situation is the home business person who sets up specifically to earn income, either as an addition to paid work or as their sole trade.
There are many choices open to you and they require a great deal of carefully thought before you commit yourself, especially if you need to purchase expensive stock or equipment to be able to operate.
Think about your competition.
If you live in an area where there are already several people offering gardening services, will there be enough trade available for your new garden maintenance business to stand a chance of flourishing? If you are selling jewellery online, how many other people are selling something similar? Think about how much your service or product is wanted.
You may have a unique idea, but the reason no-one else is already providing it could be that no-one wants it.
You can just ask family, friends and neighbours - but be careful how you do that, so they give you honest answers and not the answers they think you want to hear! Try to do some research to see if you can anticipate trends in the service or product you plan to sell.
There are several well known online tools that can help.
You may be able to see that there is growing demand, which bodes well for your business, or you may hear alarm bells as you see demand is dropping.
Would you be arriving in the market too late? My final piece of advice is to think carefully about how much cash you will have to put into the business upfront.
If you spend a great deal on stock that doesn't sell, you will have put yourself into a very difficult position.
Alternatively, some business equipment gives you flexibility - as in the case of buying a van for your gardening business, which you could also use for deliveries, window cleaning...
If you have something a bit different, something original or that solves a problem for people, you may well have something that will work, and provide you with an enjoyable and financially rewarding future.
Decisions are easy if you are just exploring the possibilities from your hobby, but won't be relying on the income.
If you knit, for example, and always will, the chances are you will be happy just to pass on the products you are making to someone who appreciates them and to make enough to pay for the materials.
Do not expect to make more than a minimal profit on hobbies.
You just have to walk round any craft fair to see why.
To continue with the example of knitting, for every stall selling exciting and eye catching sweaters there are five or six selling nice but quite run of the mill scarves, baby jackets, gloves...
Competition is high and prices are low.
However, if the money is a secondary issue for you, then selling at local craft fairs and on the internet can be an interesting activity that helps to cover your costs.
Of course, some people do go on to make a good living from a hobby, setting up a gardening or home decorating business, or selling jam through a farm shop, and some go even further and manage to sell to a national store, but these are very few and far between.
The alternative situation is the home business person who sets up specifically to earn income, either as an addition to paid work or as their sole trade.
There are many choices open to you and they require a great deal of carefully thought before you commit yourself, especially if you need to purchase expensive stock or equipment to be able to operate.
Think about your competition.
If you live in an area where there are already several people offering gardening services, will there be enough trade available for your new garden maintenance business to stand a chance of flourishing? If you are selling jewellery online, how many other people are selling something similar? Think about how much your service or product is wanted.
You may have a unique idea, but the reason no-one else is already providing it could be that no-one wants it.
You can just ask family, friends and neighbours - but be careful how you do that, so they give you honest answers and not the answers they think you want to hear! Try to do some research to see if you can anticipate trends in the service or product you plan to sell.
There are several well known online tools that can help.
You may be able to see that there is growing demand, which bodes well for your business, or you may hear alarm bells as you see demand is dropping.
Would you be arriving in the market too late? My final piece of advice is to think carefully about how much cash you will have to put into the business upfront.
If you spend a great deal on stock that doesn't sell, you will have put yourself into a very difficult position.
Alternatively, some business equipment gives you flexibility - as in the case of buying a van for your gardening business, which you could also use for deliveries, window cleaning...
If you have something a bit different, something original or that solves a problem for people, you may well have something that will work, and provide you with an enjoyable and financially rewarding future.