How to Start Your Own Home-based Business

By Julie Pitts

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It’s the American Dream—starting your own, successful, home-based business. The problem is, how difficult is it to truly realize success when starting your own home-based business? The average home-based business lasts only about 2 years before the individual realizes they won’t make any money and give up. Starting a home-based business can be a challenging task. Many do not succeed due to disorganization, lack of funds, unproductive marketing/sales efforts, or ineffective resources. Planning in advance to ensure your home business will be all that it can will prove advantageous to you in the end as you begin signing sales contracts and working diligently with your clients in growing and developing your business properly. Then there are the ones you see on late night TV, promising great wealth instantly. How do you get started? The following tips will help you get started in determining how to start your successful, home-based business.

Instructions

Difficulty: Moderate

Things You’ll Need:

  • A home
  • A business idea
  • Ambition to get started
  • A computer
  • Financing
  • Banker and Accountant
  • Strong Coffee

Step1
Decide what you want to do. Think about that one thing that drives you—that thing that you are most passionate about—and figure out how you can make a business out of it. What did you want to be as a kid—or better yet—what did you like to do most? Do you still get excited when you think about that one thing? Whatever that deep-seeded passion is—rediscover it and turn it into profit for yourself.
Step2
Determine your target market. Once you have ascertained your product/service, decide what your target market is. Small businesses, big businesses, consumers…? Whichever you choose—develop a marketing plan that will enable you to access the customers that most need your help first, and grow from there. You will find that your business will grow more quickly and profitably if you start this way.
Step3
Ascertain marketing time needed. How much time each week will you need to spend marketing and advertising your services? Determine which days of the week or what times of the day you will spend marketing, and work accordingly. Marketing your business is critical to its success. Otherwise, the people who most need your help will not know you exist and will choose someone else who is actively networking and marketing their services.
Step4
Ascertain sales time needed. How much time each week will you need to spend selling or in sales presentations? Determine how much time you will need to accomplish this, and schedule your time accordingly. If you have marketed yourself effectively, the next logical step is to present your services or products to potential buyers. Allocation of your best time to selling will result in more sales more quickly as you move forward.
Step5
Ascertain how much “work” time needed. Especially in the beginning, it will be most difficult to balance your time to incorporate marketing, selling, and work time. However, if you can carve out the rest of your time to actually perform the service or produce the product you have promised your prospective customers, you will have successfully achieved a balanced schedule designed to keep you on task and always marketing your services to those who most need your assistance.
Step6
Surround yourself with resources. Get involved in networking groups, meet with peers from former jobs you have held, and develop a mentoring relationship with someone you trust and respect. The more resources you have to help you succeed, the better your chances are of actually succeeding in making your home-based business dreams come true.
Step7
Develop strong banker and attorney relationships. One of the keys to success is to know your banker and attorney well. They will be able to provide you with leads and other resources to help you grow financially. They will also be able to help you obtain low-cost, small business loans designed to help you drive business while not worrying about start-up capital or cash. Use a small business loan to invest in marketing and advertising, good equipment, or other items needed to effectively begin your home-based business.
Step8
Set office hours and schedule. Determine your office hours and your schedule, and follow accordingly. If you do not schedule your office hours, you will not be as productive as you could, which may hinder your growth. Equally as important—stick to the schedule you develop. Treat your business as if you were working for someone else, but remember that since you are working for yourself, you will only be as successful as the amount of time and resources you put into your business.
Step9
Set aside a room in your home as your “office”. An effective home-based business has a room designated toward your office activities. Don’t try to work from the kitchen or coffee tables; this will prove more distracting than you may realize. Determine the best room for you to work in effectively, and go for it!
Step10
Write a strong business plan. This should include financial information, projected income, projected profit, target market, and the methodology through which business will be attained. Have your business plan reviewed before you begin to ensure you have not forgotten anything, and make sure the person who reviews it is an objective third party source.

Tips & Warnings

  • Remember to buy yourself good office equipment and other necessary office items to get your business started.
  • Meet with your banker and accountant before you begin your business to ensure your business plan is viable.
  • Separate your home-based business from your personal bank account to ensure you don't spend business money on personal needs.
  • Make sure your business plan and financing are solid before you begin.
  • Never attempt this without strong coffee.
  • Do not begin this without having your business plan reviewed by your accountant, attorney, banker, and/or a close business associate.
  • Do not give up too early! Keep at it and make your dreams succeed!

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eHow Article:  How to Start Your Own Home-based Business

eHow Member: Julie Pitts

Julie Pitts

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Category: Business

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