Around two-thirds of 23.5 million working women have children under 18 years old. Even though this number has gone down due to the pandemic, it is still considerable. Many of these mothers contribute to the finances at home, while others are single parents who have to support the family on their own.
But this does not mean that stay-at-home moms cannot contribute to the household income. With the advances in technology, many of these stay-at-home moms can augment their partners’ income by starting a home-based business.
Here are some tips that moms can consider if they plan to start businesses while staying home.
Set Realistic Goals
One thing that stay-at-home moms should do when they want to start a business is to set realistic goals. Goal setting is essential when anyone starts a business. They should have short-term and long-term goals. These goals help them stay focused and motivated as they run their businesses.
Also, the goals set the criteria showing the success or failure of the business. Well-defined and realistic goals allow stay-at-home moms to control the direction of their business. It also allows them to increase the chances of successfully hitting their business targets.
To know if they hit their targets, they should set measurable and time-bound goals. The goals allow stay-at-home moms to achieve a work-life balance that they could not get when they were still working. It also helps them limit the spending they need to make to help the business grow and increase its revenues.
Look for Affordable Business Ideas
Aside from setting the goals for the business, stay-at-home moms should also be on the lookout for affordable business ideas. Affordability is important if the budget for the business has limitations. Thus, they should look for business ideas that do not require a considerable investment.
The business should also not require a lot of high-end equipment. Home-based businesses that stay-at-home moms can start include online tutoring, virtual assistance, freelance writing, and graphic design. Stay-at-home moms can also start an e-commerce store if they have a lot of things to sell at home.
Understand the Market
Stay-at-home moms should also understand the market where they are starting their business. Understanding the market makes it easier for them to know if there is a demand for the product or service they are offering. It also allows them to know the size of the market they are entering and the competitors in the market.
And when they start selling a product or offering a service, they need to create a promotional strategy. They can facilitate this strategy if they have a good understanding of the market. Therefore, stay-at-home moms should research the market and understand it before starting the business. This allows them to avoid making mistakes when they start the business.
Working with a strategic consulting firm is ideal if the stay-at-home mom has a considerable budget for the business. The firm can provide a feasibility study, SWOT analysis, growth mapping, and customer acquisition roadmap. With this, the business will have a bigger chance of succeeding even in the middle of a pandemic.
Decide the Business Structure
Starting a business means a stay-at-home mom is earning money. Since she is earning money, she should pay taxes for its earnings. At this point, stay-at-home moms should decide on the structure of their businesses. They should remember that the business structure affects the taxes, ability to raise funds, and personal liability.
Even though a sole proprietorship is the easiest business structure to set up, it also exposes the business owner’s personal assets to litigation in case the business goes into debt. On the other hand, a limited liability company (LLC) is complicated to set up; it protects the owner’s personal assets. An LLC also gives the stay-at-home mom access to loans that she can use to expand the business.
Technology made it easier for people to start businesses even at home. Thus, stay-at-home moms should do the same and leverage technology to allow them to earn while taking care of their children at home. There are a lot of digital tools that can help them in their businesses.
For instance, if they plan to sell products online, stay-at-home moms can use e-commerce platforms to create their online stores. They can also sell these products on online marketplaces. Promoting their businesses is also easy using online tools, such as social media networks and email marketing tools. Additionally, some online tools also make it easy for them to track inventory even without the help of an employee.
Mothers of young children can still earn while at home by using the latest developments in digital technology to their advantage.