Archive for September, 2013

8 Tips When Starting a Home Business

home_businessStarting your own home business is a practical way of earning money and caring for your family at the same time. It maximizes time and resources in a way that large companies cannot do. However, working on your own or with your family can also mean compromising a lot of things. There are lots of resources on the line. In this kind of venture, it is either you succeed big-time or fail.

Don’t jump into a venture without identifying key strategies and processes. Here are eight tips when starting your own home business.

1. Have a business plan in black and white.

An idea is a mere product of creativity, but when written down in an organized form, it becomes a concrete plan that only waits for execution. The plan should detail the business model, product or service, actual and possible resources and your operation outline.

2. Educate yourself

Venturing into a business with mere faith and gut is financial suicide. A business idea should have an affirmation by researching more, undergoing training and assistance, and getting yourself business counseling. Local governments and private organizations both offer training programs for home business owners and employees. Take advantage of them.

3. Plan how to reach the market

Home businesses often utilize word-of-mouth as a primary marketing strategy. Especially for businesses that cater to surrounding neighborhoods, this can be a wise and economic strategy. However, you can also apply active marketing. Instead of relying on referrals, try door-to-door promotion since it is most likely that you know most of your neighbors. Social media is also a good venue in targeting community-specific market. Party events are also becoming a big thing across the U.S. This is when a business owner hosts a party in a community to introduce products and services.

4. Prepare your finances

You need to know how much you are willing to invest in a business before choosing a business model and product/service. Afterwards, you need to secure capital, either from the government, banks, lending companies or private investors.

5. Determine business structure

A home business is often registered as a sole proprietorship, but it can also be a partnership, company, corporation, limited liability company (LLC). It is not advised for a family business to be registered as a cooperative, unless you do it for your own community. Each structure has its own legal requirements. Tax can also vary for each structure, depending on your state.

6. Delegate tasks

Working on your own is not practical but doable. For families, though, there should be a clear delegation of tasks without setting aside multitasking. By having a clear delegation of tasks, accountabilities will also be clear. You can also save time and money by knowing what exactly you need to do and what to supervise.

7. Register your business and brand

A small home business is still a business, so it should have proper branding and documentations. For food businesses, your state government may also require you to register with FDA or authorized local agencies.

8. Identify limits

These are two big advantages of home businesses over large companies – they can focus more on meeting all the clients’ demands and the owners have more time facing the clients themselves. Not offering flexibility to the consumers is wasting one key advantage.

However, being a small start-up home business, you should still be aware of your own limitations to avoid ruining your reputation. If you deliver, how far can you cover? If you customize, what price ceiling can you impose? If you respond to inquiries or orders within a set time limit, what would be the exceptions?


Putting Home In Network Marketing

NetworkMarketingToday, due to technical advances and the online revolution, doing business person-to-person is not in vogue. You hear about the thousands of dollars to be made by becoming a network Marketer. There are people making a lot of money online, however, network marketing is very difficult for the novice. A great deal of the money being made online is being made by experienced online marketers, sometimes called super marketers, selling their secrets to new online marketers. Much of the advice is good, however, I personally believe that the best home business to start is a network marketing business.

The best place to start is to learn all you need to know about the products or services you will be selling and how they can benefit others. This step is critical, since it helps you to determine what your target market will be from the onset. Consequently, your marketing efforts will only be focused on people who stand to benefit from what you are selling. Once you have identified your target market, you need to show your customers how they can benefit from what you are selling.

People who have benefited from your products or services are more likely to refer others. As you target the right customers for your business, you are on your way to success in network marketing. One of the benefits of being involved in the network marketing industry is that you do not have to limit yourself to any single company program! Because once you have gained enough experience from your first program and have grown your network to an extent where it is profitable, you do not have to continue to limit yourself to that network. You can expand to other networks and even bring parts of your previous network with you.

Be aware that the American Federal Trade Commission (FTC), which oversees consumer affairs in the United States, has a “Koscot Test”, which contains a criteria that requires any MLM in the US to calculate bonus to be at least 70% based on actual sales (by a downline), and less than 30% based on recruitment (of the downline). MLM not compliant with this risks being ruled a pyramid or ponz1 scheme and shut down.

Therefore, be careful to avoid fraudsters that may go to great lengths to make the program look like a legitimate network marketing program. But despite their claims to have legitimate products or services to sell, they simply use money coming in from new recruits to pay off early stage investors. Then eventually the pyramid will collapse and get too big to raise enough money from new investors to pay earlier investors, and many people will lose their money.

The list of suitable network marketing services for building an income will vary depending on the niche and the type of business model, but generally speaking they all have some things in common. For example, a wise home business owner will often look at every penny, and as such opt for cheaper online marketing models such as SEO or social media marketing instead of paid advertising.

Make sure you choose a home business that fits in with your personal interests and budget. You should be passionate about the product or service you offer, and customers will pick up on that. That helps a lot when you want to expand your customer base.

A Successful Home Business owner must be a self starter. The ability to work independently is crucial. The most important ingredient to succeeding when you start a home business is you! Do you have the self motivation needed to be able to push yourself, especially when things don’t worked out. The speed and level of success will be dependent on the time and effort you devote to your new home business.