Starting a home-based business makes a lot of sense in the new economy. Americans feeling the cash crunch are spending more time at home. Opening up a home-based business has never been easier. The internet connects you with people who are likely to buy your products or services and with professionals who can supply you with business prowess. Need some help getting your business idea off the ground? Here are some tips to help.
#1 Assess Your Strengths
Are you a good writer? Practice and be the best writer you can be. If you enjoy kayaking, perhaps you can pitch a story to an outdoor publication. Maybe you are a civil engineer with an interest in green construction practices. Have a knack with computers? A repair service just might put a little more jingle in your pockets. The possibilities are endless - closet organization, auto detailing, business consulting, photographing special events, tailoring - ask a close friend or family member if you are struggling to find your niche.
#2 Determine Who Will Buy What You Are Selling
When Ami Moore, a Chicago Dog Trainer, started Doggie Do Right to coach dogs and pet parents to live together harmoniously, she networked endlessly. “I partnered with veterinarians, gave advice to pet parents of rehomed dogs and looked for opportunities to promote my business in online communities.” Her plan worked. In 2005, she hit six figures. Ami did several things right that you can do to home in on your target buyers. She turned to bona fide plugged in communities and turned them into referral sources to minimize her advertising costs.
#3 Evaluate The Competition
If you want to offer a scrapbooking tutorial and there are five scrapbooking stores offering lesson within a five block radius of you, find a different angle. Maybe you can specialize in a type of book or paper, or you've developed a technique none of your competitors use. Instead of a run of the mill cleaning service, use only all-natural products. The bonus is by positioning yourself as an expert, above all the fray, the perceived value of your services is greater… which means you can charge more.
#4 Pricing
Ami Moore chuckles when she recounts one of her former competitors. “He hung advertisements on doorknobs, wallpapered the community with fliers and had no takers. He reduced his prices and even offered free lessons. When he finally landed a paying dog training client, he was losing money.” Turns out the value of his service wasn't at issue - he was focusing on a planned community that banned dogs. Think about where you are looking for clients and what the marketplace is. Lawyers may have more room to pay $100 for advertising design than a trucking firm. While you build up your business, don't be afraid to be flexible on your pricing strategy.
#5 Promote Yourself
Networking is key, as illustrated by Ami Moore's success. But you need materials you can leave behind with prospects. Ami always carried an extra leash with her website imprinted on it to send home with someone who forgot one, had one too short for the park, or maybe the dog escaped the off-leash area. She had professionally printed business cards and brochures. As the revenue rolled in, she upgraded her dogdoright website and hired a publicist, which she thinks gave her better results than constantly advertising. Promotional items can be excellent if they are relevant to your target audience.
#6 Get Business Help
Most communities have a small business resource center funded by the local government, the SBA, or the Chamber of Commerce. These are all free services, or available for a nominal fee. You also gain access to SCORE, which are retired executives who may have expertise in your field. Why pay thousands in consulting fees if those same services are available at no cost? Invest $1,000 or so with an accountant to set up your books properly if you've never done it before. You will pick up a wealth of information from your consultation, and ensure you are on the right path.
Start your venture part time if you have steady income already. If it starts to take off, evaluate the pros and cons of doing it full-time. Will your gas savings, for instance, offset your loss of a 401k match from your job? Where will your health insurance come from? Once you make your decision to start your home-based business, don't be afraid to follow your dreams!
