Challenges in Thriving Home Businesses

While home-based food businesses are flourishing during the Covid-19 period, those

selling bakes are facing challenges, as Shermaine Chua found out.

While it seems like home businesses are doing well during the pandemic, only F&B

related businesses are.

Home-based service businesses, such as tutoring and nail services, where

customers are required to visit the homes, faced great loss since they had to be on

halt during Phase One.

Instagram used to just carry pictures of the food we eat, but now it is filled with posts

from home-based food businesses. 

In a recent Metropolitan survey of 134 respondents, home businesses selling

food, followed by accessories, are reported to be the most commonly seen. It also

reflected that the largest percentage of respondents, 59.7 per cent, are most willing

to purchase food from home businesses among other products and services. 

A home-based business is a small-scale business carried out within one’s residential

premises. 

During the lockdown period, many Singaporeans jumped on the bandwagon of

running their home-based food business. It has provided them a source of income

since many lost their jobs or their company was put on hold. 

Ms Liza Hamzah, 36, the owner of @chef_de_mainstream on Instagram, started her

home-based business back before the COVID-19 pandemic. It was a business

alongside her full-time job as a chef. She then lost her job during the pandemic. She

then decided to focus on her home-based food business, which expertise in selling

frozen marinated meats and frozen food.

“The home-based business has helped me to get by during the pandemic,”

says Ms Liza.

Jomkunyahsg is a family food home-based business selling mainly desserts, dishes,

and side dishes. The family started selling Nutella cakes a few years ago. It is a

yearly ritual for them to bake the Nutella cakes for Jurong Bazaar Ramadan and

selling from two different food stalls. The family would sell two cakes daily. However,

due to the COVID-19 pandemic, large-scale events like the Ramadan bazaars had to be cancelled this year. 

Home-baked Nutella cakes by Jomkunyahsg. PHOTO CREDIT | Jomkunyahsg

The family then turned to Instagram and created their own page to open for orders.

They managed to sell around 32 cakes during the pandemic. 

“With the support from our family and friends, our existence was shared and we

received a good flow of orders during the month of Ramadan despite the Covid-19,”

says Mr Hadi Taufiq Bin Saharudin, 20, a student who helps his mother promote and

take orders on Instagram.

While home-based food businesses are thriving, those selling bakes faced

challenges. As many hopped on the baking trend during the circuit breaker period

and with some even turning their baking passion into their home business, there was

a high demand for baking essentials. 

Baking supplies were running out at supermarkets and baking supplies shops. With

limited baking supplies available, home baking businesses could not meet their

orders. 

“Everyone is fighting over supplies for their needs and their business. Even the stocks online are out of stock. Because of this, we didn't manage to take in any more orders and told our customers that our foods are not available yet,” says Mr Hadi.

Joline Lee, 17, a student running a home baking business, Sweet Cheatz, also

raised her concern as baking essentials were limited and increasing in price. 

She says: “It affected my business because there were limited items I could open up

orders for and I was only able to sell out a lower amount of bakes. Not only did the

cost price go up, business went down and the amount of time spent queuing and

sourcing for ingredients and packaging would go up to four hours when I could easily

walk in and out of the store with everything in stock in the past.” 

The recent increase in home-bakes businesses has created more competition for

existing home-bakers. 

“I just feel that many people out of nowhere came about to do this which gives me an

impression that home-bakes come off as something that just anyone can do. But,

there’s so much hard work behind it,” says Joline. 

As a home business owner, she not only has to sell bakes but also does accounting

work and settles the deliveries and packing. Running a business is never easy.

“Buying ingredients is more expensive as we don't buy in bulk and we can’t

negotiate with suppliers. Everything is on your own. From advertising on social

media, handling customers’ enquiries, taking orders, creating logos and slogans,

marketing , production, and delivering,” says Ms Liza.

However, with the required skills and advertising on social media, one can easily

start their home business. Furthermore, no license is required.

“It’s your own business so you can close or open orders anytime. You are your own

boss. You can decide what to sell. There is no rent to pay. Rental is a killer for all

businesses,” said Ms Liza.

Infographic showing the survey results conducted by Metropolitan on Home-based businesses. PHOTO CREDIT | Shermaine Chua