Steps to Starting a Home-Based Business
As a home-based business owner, you work harder and longer than if you were clocking in at the office. You must have a desire to succeed and a keen business sense -- but above all else, you need a well-written business plan. Everything in life has a blueprint, from homes and cars to furniture. Without a business plan, your home-based business has no blueprint, nothing on which to build.
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Supply and Demand
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Lay the foundation for your home-based business by selecting your product and determining the demand for that product. Make a list of the products and services you offer, and add notations about the differences between your package, and everyone else's. If you're the only one selling a particular product, find out why. Did you create the product? Have others tried to sell the product and failed? If it's the latter, you may want to change products. If it's a product you make, can you create enough to keep up with demand? If you can't, create options for keeping your customers satisfied. Find several suppliers for your merchandise, in case one goes out of business, or runs out of product.
Marketing Strategy and Customers
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Determine where you find customers, when writing a business plan. Who are you marketing to, and why? When they get older, change jobs or have kids out of the house, will they stop being your customers? Research, dollar for dollar, which advertising venue would best suit your home-based business. Advertising is where you can be creative. From private-label candy bars at Halloween, to hosting a local celebrity auction for the food bank, think of all the ways to get your business name to the masses. Charity events cast you and your company in a positive light. Think outside the box when developing marketing strategies.
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Rules and Regulations
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A crucial step in starting a home-based business is learning the rules, regulations and licenses required to open and run the business. Zoning regulations in your locality may restrict what you can do in your home. If the business is mail-order or internet-based, find out if there are restrictions on marketing, selling to minors, and products allowed. There's a reason you sometimes see "not available in these states" written at the bottom of advertising. For products and services offered locally, check with your county treasurer's office for more information about obtaining a business license. You may need a state license for certain services or products.
Life Lines
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You may know your product inside and out, but you must also know how to run a business. If you don't have experience managing a business, find a mentor. Fill in any experience gaps you may have with qualified people you can count on to help. SCORE.org offers counseling and online business consultations from retired business people. Take advantage of their experience by setting up a consultation, and learn the strengths and weaknesses in your business proposal.
Venture Capital
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If you have money set aside to start a home-based business, remember to save part of the savings for slow periods. If you must borrow money for supplies, inventory and equipment, shop around for the best low-interest loan available. You may choose to find alternative forms of finance. A venture capital source is a key component to your business plan.
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References
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- Photo Credit business man image by Christopher Hall from Fotolia.com
