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Business and Finance

Home-Based Business Question Answers

Question 1

By locating her business at home, Roundtree is likely to face some challenges that may affect her business’s growth and profitability. The most likely limitation of setting up a home-based business is the higher possibility of the business or work encroaching on her personal life. She will always be at work despite spending most of her time at home. It will be difficult to set boundaries between home life and work life and be able to stick to these boundaries. In addition, she will face isolation as she will be working far from other business people. Consequently, she will lack a strong support system essential for managing the challenges of operating a business. Moreover, she will have a lot of distractions ranging from the desire to watch television, the presence of visitors who pop over frequently, and distractions from family members.

What’s more, locating her business at home will attract fewer clients as compared to locating the business in a business centre. Thus, she will be losing potential clients who would have reached her if she had a location near the business centre. The reason is that the clients would be reluctant to take the trip from the nearest city to their home as it would be inconvenient for them. Additionally, it would be difficult for her to ensure the efficiency of the business as she would not be having a boss or a supervisor to keep track of the business’ efficiency. As a result, she will be forced to work extra hard by spreading her time in all projects and roles in the business to ensure efficiency.

Question 2

Despite having some challenges, running a home business has benefits for the owner. For instance, Roundtree will be her own boss and be able to make certain decisions pertaining to her life and business. She will be controlling all the finances, operations and any other issues related to the business. Also, she will be in a position to quickly and easily set up and run her business as fewer resources will be needed. If she had an office in the city, she would be forced to pay for the office premises and other taxes and rates that would fit such a business. Apart from being her own boss, Roundtree will have the convenience of operating her business from home, which entails not wasting time and money commuting to and from the city. This saves her the hassle and finances, which she can then put to use in the business to ensure profitability and growth.

Other than family being destructive to her, she can take the opportunity that her home-based business offers her and choose to spend more time with her children. This can only be done if she plans her time well by setting up a specific time to spend with family and other times strictly for business. She must then be very strict and disciplined in following her plan to the letter. Apart from spending time to socialize with her children, she will also be able to balance between business and housework. This ensures that she does not spend additional money to hire other people to take care of her children and do her laundry and other general chores in the home.

Question 3

Technology will ensure that Roundtree achieves efficiency in her business. Her communication will be more effective through the utilization of laptops, phones, and tablets to run her operations. For instance, she can keep in touch with her clients and reach out to potential clients through email, messaging and other apps available on her laptop, phone and tablet. The clients will be in a position to communicate with her in real time and make orders or make any inquiries concerning her products and services. Moreover, she can use the web to promote her products and services to local clients and even those in a different geographical location from her. Despite technology making business easier, Roundtree would still need to meet face-to-face with her clients and suppliers occasionally to make deliveries and meet other important needs. Therefore, email and electronic diaries would play a significant role in ensuring that she arranges her meetings and is able to transfer important documents to her clients and suppliers. On other occasions, she can use video and teleconferencing to meet and discuss important issues concerning the business. Above all, technology allows Roundtree to be accessible to her clients whenever and wherever they need her products and services. As a result, the efficiency of her company will be made possible by the technology used in the business.

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