Throughout 2020 and 2021, numerous small businesses shut their doors and instead decided to sell their products online. For millions, in-home businesses have proven to be highly lucrative, especially in the age of social media.
Today, many small business owners continue to operate entirely from the comfort of their own homes. In-home businesses can offer owners increased control over their own schedules while also providing them with greater work-life balance.
Insuring in-home businesses come with its own risks specific to each business or craft. Here are the top 10 trends for in-home businesses that you should keep in mind as you anticipate what your clients might need to cover.
1. Affiliate marketing
Affiliate marketing is a process where publishers or content creators earn a commission for promoting a product or service that another retailer created. The industry itself is expected to grow to a total of $15.7 billion by 2024.
Affiliate marketers are able to promote a variety of different products from their personal websites or social media accounts. Whenever a person clicks on a link on their site and purchases a product or a service, they earn additional money.
This type of in-home business has become popular because it’s easy to establish for people with basic marketing skills. Affiliate marketers simply choose the product they want to promote and enroll in an affiliate program.
E-commerce is the process of buying and selling goods electronically, and it’s become increasingly popular in the age of the internet. To run an e-commerce site, it’s necessary to have a product to sell, whether that be handmade crafts or books. E-commerce business owners often turn to sites like Amazon and eBay to build a base of loyal customers and compete with other businesses. Many e-commerce business owners also provide specialized support to their customer base to differentiate themselves from their primary competition.
3. Web development
Web development consists of all the work involved in developing a website, and it can range from very simple to highly complex. As more companies and individuals rely on the internet, the demand for small web development has increased. The U.S. Bureau of Labor Statistics expects the demand for web developers and designers to increase by 23% through 2031. Many people who understand how to develop websites are also able to find a niche in the market, allowing them to offer more personalized services to organizations or individuals.
4. Social media management
Social media has also become a popular way for people to make money from the comfort of their own homes. To get started, many choose to build their skills and online portfolios before finding their preferred niche. People who excel at social media typically have a thorough understanding of the latest trends and know how to attract the attention of their audience. They also use industry tools and technologies to connect with their audience. Some of the most popular social media platforms include:
5. Digital services
Cloud-based software, e-books, and music streaming continue to be popular, and an increasing number of businesses are making these online services readily available. Virtual services are likely to continue to be popular in the coming years, including virtual instruction and tutoring services. People with a specific set of skills and knowledge may leverage their personal expertise to attract a certain audience. For example, someone with a music certification may provide music lessons to different age groups using a video chat platform.
Copywriting is a type of content creation that involves promoting a product, service, or set of ideas. Copywriters often operate out of their own homes and write for specific websites, magazines, blogs, or newspapers. They often work freelance and complete different projects for a wide range of clients. The prices they charge may depend on the client or the specific project.
7. In-home tutoring or instruction
Music and dance instructors, personal tutors, and other teachers who are passionate about a specific subject may choose to operate out of their own homes and have their students visit them for lessons. By doing so, they can enjoy increased flexibility and the opportunity to create more varied lesson plans. Time lost due to school closures has increased the popularity of private tutoring, and many parents have become more willing to invest in their child’s education.
8. Baking and catering
Baking and catering businesses will likely continue to be popular, as they offer increased convenience to customers and allow people to cook directly from their own kitchens without having to invest in a separate building. Home bakers and caterers use their passion and love for cooking to create tasty treats for birthday parties, weddings, and other special events. The baked goods or food they prepare is based on their area of expertise, and depending on the size of their operation, they may have a small staff to help with their orders.
People with expertise in a certain area may use their extensive knowledge to help organizations prosper. An in-home consulting business can be beneficial to people interested in long-term freelance work. For example, a person operating an in-home marketing consulting business may help their clients improve their digital marketing strategies.
Increasingly, businesses and individuals are hiring online designers to improve their marketing graphics or the content on their websites. In-home designers are able to attract customers by using their online portfolios. Many also have their own websites and social media profiles and may charge based on the project or the time they expect it to take.
If your clients own their own businesses, it’s important to make sure they’re properly protected with the right insurance coverage. Our team at Quaker Special Risk has the expertise to pinpoint all the risks that need coverage, no matter what business your client decides to run from home. Contact us for a quote or to learn more.