SINGAPORE – The prospect of starting a business from the convenience of one’s own home has drawn aspiring young entrepreneurs.

In 2024, home-based cafe directory Acuppa launched with just five home-based cafes listed in Singapore. Today, the directory boasts 523 businesses – from specialty coffee spots to artisan bakeries and dessert makers.

Ms Liew Hwee Min, senior manager of innovation and entrepreneurship at Temasek Polytechnic (TP), attributed the rise in popularity of home-based businesses to several converging factors.

“Covid-19 normalised working from home and encouraged many to turn hobbies into income-generating ventures,” she said. “At the same time, rising costs of goods, services, and especially commercial rentals, encouraged entrepreneurs to seek lower-overhead business models. Social media then amplified the visibility of these small operations, allowing them to reach large audiences despite being located in low-traffic residential areas.”

Home-based businesses face unique challenges such as limited visibility, small space and the blurring of boundaries between work and home for entrepreneurs.

TLDR spoke to the young owners of four home-based businesses – with experience ranging from two months to two years – to find out what aspiring entrepreneurs should know before they start a home-based hustle.

One of the main advantages of starting a home-based business is the absence of rental costs, which are often a significant component of expenses for brick-and-mortar businesses.

However, the flip side is that the business may cause friction at home if not properly managed.

Ms Liew said: “The challenges of running a home-based business are often tied to its success. As the business grows, it may begin to encroach on the owner’s living space.

Republic Polytechnic student Ashling Kera O’Donnell (right), and her twin sister Casey Aoife O’Donnell, an Institute of Technical Education student, run home-based salon Nailsca.sg.

ST PHOTO: KELVIN CHNG

For 18-year-old twins Casey Aoife O’Donnell and Ashling Kera O’Donnell, who have been running home-based nail salon Nailsca.sg since October 2024, they initially clashed over the business and personal space.

Younger sister Casey, who is studying for a Higher Nitec in Logistics and Supply Chain Management at the Institute of Technical Education, said: “We used to argue a lot because both (nail) set-ups were in my room and it was too cluttered.

“Sometimes, (my sister) would have a client when I didn’t, and I felt like it was an invasion of my space.”

The sisters – who are Singaporeans of Irish-Sindhi lineage – resolved the issue in August this year by shifting one set-up to Ashling’s room. While this required them to invest more money on duplicate items that they had previously shared, the sisters said this has been for the best.

Ashling, who is a second-year business student at Republic Polytechnic, said: “It might be harder when we get two-pax bookings from friends because they have to be separated, but sometimes we found solutions to that like setting up video calls between our rooms.”

Each of the sisters takes on about 20 to 25 clients a month. Most clients come on weekends, as the twins’ school and internship commitments prevent them from seeing more than one client every weekday evening.

Their parents have been very supportive of their business. “They’re very relaxed about clients entering our home,” Casey said. “My mum is very passionate about seeing the designs we do for our customers.”

Entrepreneurs may also have to think about how to manage their privacy while running a business from home.

Ms Chazel Davine Ng, who runs cafe Brewed by Davine, does not publicly disclose her full address. She lists only her block number and gives customers her exact address only after their orders are confirmed.

Ngee Ann Polytechnic student Chazel Davine Ng not only runs her home cafe, but also does pop-up events and supplies food and drinks to a student-run cafe at the polytechnic.

ST PHOTO: DILLON LOH

The 19-year-old business studies student at Ngee Ann Polytechnic said: “It’s for safety and privacy reasons. I do publicly put my block number in my (social media) bio so people know where my cafe is located, but my following is quite large, and you never know who’s watching on social media.”

Home-based business owners – including those operating in low-footfall, residential areas – are not allowed to display advertisements, signage or posters at residential premises.

This makes it especially important for them to leverage social media – even more so than physical shop owners – to attract customers to their homes.

Ms Seah Rui En, 19, who operates nail salon Nailsbynoki, said that she tries to collaborate with influencers when business is slow. The third-year consumer behaviour and research student at Republic Polytechnic offers influencers a free set of nails in exchange for them posting a vlog on her business.

NP student Chazel Davine Ng preparing matcha at her home cafe in Bukit Batok.

ST PHOTO: DILLON LOH

Ms Ng of Brewed by Davine promotes her business through holding regular pop-ups at her polytechnic, and supplying drinks and desserts to a pilates business and a student-run cafe.

“No one will walk past my block and discover my store. These events are important to get my name out there and get brand visibility,” she said.

Ms Ng’s intention is to run her home cafe twice a week – on Fridays and Saturdays. However, she finds herself baking or preparing drinks every day – not only for opening days, but also to supply the businesses she works with. “I spend more than 12 hours a week just baking. Every day I’m preparing something for the business,” she said.

Owner of Coffee by the Porch, Mr Kaydon Lim, said that the success of his business was partly driven by social media videos that became popular on sites like TikTok and Instagram.

Home cafe Coffee by the Porch was opened by three SMU course mates in April 2025.

ST PHOTO: DILLON LOH

The 25-year-old recent graduate of Singapore Management University said: “In the run-up to the cafe’s launch (in April), we made a lot of videos documenting our research and development process, and the behind-the-scenes work that we were doing to prepare for the cafe’s launch.

“Those more personal videos generated traction online, and attracted younger audiences who would be interested in home cafes,” said Mr Lim, who is working full-time in banking operations.

Other entrepreneurs also said that online content with a personal touch, such as “day-in-the-life” style vlogs, helped to build an organic and loyal customer base.

Ms Ng said: “(These videos) help me to be closer to my customers, and add to the community aspect of the business.”

Under home-based business scheme regulations, businesses must be operated by owners, registered occupants, or tenants of the property. Third parties and non-resident employees are not allowed to work in it.

This means that entrepreneurs must be responsible for the entire business operation, with very little additional support.

Coffee by the Porch is currently managed by Mr Kaydon Lim, who graduated from Singapore Management University in June this year, and his older sister Charlene.

ST PHOTO: DILLON LOH

For Mr Lim, Coffee by the Porch became a family affair after one of his business partners decided in June to start his own business. Since then, his older sister and his mother have stepped in to take orders, make drinks and prepare baked goods.

Mr Lim spends 15 to 16 hours a week on his passion project, even though it usually opens for only one day a week – on Saturday. For the rest of the week, he does research and tests new recipes after work, and on the night before opening, he spends six to eight hours preparing drinks and setting up the cafe’s dining area on his porch.

Mr Lim plans to continue running his home cafe over the next year, but its long-term future is more uncertain. He said: “Minimally, I need three to four people to help me run the café so it may be difficult for me if my sister, for example, decides to move out. It does take up quite a bit of our time after work, and on our precious weekends as well.”

Republic Polytechnic business student Seah Rui En runs popular home-based salon NailsbyNoki.

ST PHOTO: ARIFFIN JAMAR

Ms Seah, who runs Nailsbynoki entirely on her own, emphasised that time management skills are of utmost importance for home-based entrepreneurs. “Google Calendar is my best friend,” she joked, referring to her extensively colour-coded Google Calendar that she uses to plan her school and work schedule.

She also utilises whatever pockets of free time she has to work on different aspects of her business. “I’ll often be replying to enquiries, or editing TikToks on my commute to school, for example.”

For some, like the twin sisters behind Nailsca.sg, turning their home-based business into a full-time career is something they are strongly considering.

Casey said: “I can see myself doing nails for the rest of my life, but getting a space that is both affordable and accessible is very hard. I’m definitely very inspired when I meet other home-based nail techs who are doing this full-time.”

For others, such as Coffee by the Porch’s Mr Lim, starting a home-based business has made them more aware of the challenges of going full-time in the food and beverage sector.

“The passion is still there – I still see the cafe as a testing ground and launch pad for a brick-and-mortar store in the long term,” Mr Lim said.

“But I think running (Coffee by the Porch) has opened my eyes to the realities of working in the industry. Profit margins are thin and rent is very high nowadays. I’ll need a stable income and savings before I even think about opening one.”

Mr Roderich Khoo, a lecturer at Nanyang Polytechnic’s (NYP) School of Business Management, advised young entrepreneurs to think of a home-based business as a “strategic starting point.”

“(It) provides a safer environment to test ideas, learn from mistakes, and refine your offering before making larger investments,” he said. “Once you’ve proven your concept and established consistent demand, you can then plan for growth and formalisation.”