Increasing numbers of new mothers and expectant women are discovering their entrepreneurial instincts and establishing home-based businesses.
New research from insurance firm Axa Protection reveals that more than a third of new mums and mums-to-be are keen to start a home-based venture in order to support their offspring. Those that already earn from home make on average £5,614 per year.
Praising those mums who are boosting the economy - and their family's wellbeing - by working from home, Ian Mallon, head of Axa Protection, also urged self-employed parents to safeguard their earnings with the appropriate insurance.
Home-based business insurance:
Home-based mothers can opt for an inclusive insurance package tailored to their business, or select individual insurances that cover against the most likely eventualities.
- contents insurance covers the cost of loss or damage of any home-based equipment used in the course of your business
- money/portable equipment insurance covers items that are used in the course of business, but outside your home, such as laptops and PDAs
sb/insurance/covers- business interruption insurance provides financial compensation for missed revenue because of unforeseen circumstances that prevent you from working
- product liability insurance ensures that faulty or unpopular products do not sink your enterprise
- professional liability insurance protects advice-proffering firms against the financial repercussions of legal action
- public liability insurance covers the cost of injuries suffered by members of the public - as opposed to family members - on your premises
- employer's liability insurance is vital if you employ staff that are not directly related to you, but is otherwise unnecessary
Axa boss Mr Mallon observed: "We would encourage families to ensure they have the necessary income and critical illness policies in place to protect the income generated by these home entrepreneurs.
"While many companies will provide life insurance or death in service benefits for their staff, entrepreneurs and the self-employed are reliant on providing these themselves and, as mothers' contributions to the family income become increasingly key, so ensuring that the right protection plans are in place to safeguard this income becomes ever more income," he concluded.
Working remotely for former employers is an option for a large proportion of new mums, though many are relying on extant skills, such as holistic therapies, Pilates, yoga, or babysitting to earn a crust, according to the Axa study.
And ensuring that customers pay for the services you provide can be an issue.
Invoice finance:
Should you deal with several business clients, factoring can be an excellent way to save time and money, whereas invoice discounting is a facility that can help struggling ventures overcome debt problems and get off the ground.
- invoice discounting is a complete invoicing service that can provide against debt and provide as much as 90 per cent of invoice values up front
- factoring ensures that you maintain a constant cash flow, checks your clients' credit histories and deals directly with then on your behalf, freeing up your time
One in ten respondents to the Axa survey said that motherhood gave them an opportunity to fulfil their dreams of self-employment and only eight per cent are purely motivated by offsetting the cost of childcare.
Business loans:
A more familiar way of realising your dreams of an independent career is to seek a business loan, or find a service that will consolidate your existing debts.
Unsecured lending can be a quick means of obtaining funds, based on your credit rating and validity of your business plan. Secured lending is based on the value of your property and therefore offers superior rates.
