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How To Run a Home Based Business For Maximum Success

There are many factors to consider when running a business in your home. Do you have the personality and business skills to run a business? Does it make sense to operate the business out of your home? How will this business affect the family environment? Is there sufficient demand for your product or service? What price should be charged for your product or service?

These and other important questions can be answered by writing a sound business plan. A business plan is a basic description of the goals and objectives of your business and how you plan to achieve them. Developing a business plan will help you answer important questions about your business and help you device constructive strategy to running it successfully.

Characteristics You Need to Operate Home Based Business

There are invaluable characteristics that you might want to develop if you don’t already have them. This will help you focus on your business goals for a very long time. These characteristics are the backbone of every successful home based entrepreneur.

1. Having a desire to be your own boss. You want to be the master or be in control of your financial situation.
2. Have significant specialize business ability base on education and experience.
3. Have an inherent sense for what is right for a business and the courage to pursue it.
4. Your life is characterised by willingness and capacity to persevere.
5. You posses a high level of energy and perseverance over a long period of time to make the business successful.

What you Need To Operate Your Home Based Business

A. Business Address. You need to choose your own business address where customers can check you out if they want to. Getting a business address shouldn’t be a cause for headaches. You can choose your home address–if you are comfortable with receiving customers at home–or the address of a place you can meet-up with customers.

B. Business Structure. If you want, you can hire a virtual assistant to do a part-time work for you. A virtual assistant might be important if you don’t have certain skills or characteristics that you might need to operate. A virtual assistant will fill the space for you. It solely depends on how you want to structure your business. If you decide to do everything yourself, then make sure you have the necessary tools that will make you independent.

C. Internet Banking. It is very important for you to have a bank account with internet banking activated with it. This is where your customers will pay into when they buy something from you or when you offer them your services.

D. Networking. Attend important social events and connect with others in your niche. Make friends with other like-minded individuals who have the strong will to get things done. They will help motivate you and you can also learn from them. This also helps you to get your business out there to prospective customers

E. Business Line. To improve the quality of home work time, consider installation of a separate telephone line for the business and attach an answering machine to take messages when you do not wish to be distracted, or when you are away from home.

F. Marketing Plan. The marketing plan is the core of your business rationale. To develop a consistent sales growth, a home-based businessperson must become knowledgeable about the market. To demonstrate your understanding, this section of the home-based business plan should seek to concisely answer several basic questions. What Market do you target? How Large is the Market?

G. Competition. No small business operates in a vacuum. Get to know and respect the competition. Identify direct competitors (both in terms of geography and product lines) and those who are similar or marginally comparative. Begin by listing names, addresses, and products or services. Remember, your business can become more profitable by adopting the good competitive practices and by avoiding their errors.

H. Advertising Plan. Each product or service will need its own advertising strategy as part of the total business marketing plan. Before developing an advertising campaign for your business plan, take time to review a few basic assumptions.
The purpose of advertising is to inform, persuade, and remind customers about your company’s products or services. Every advertising activity should have specific goals. Common examples are: To bring in sales orders or contracts, To promote special events such as sales, business openings, new products, To bring in requests for estimates or for a sales representative to call.

To assist in determining what types of advertising are appropriate and within your business budget projections, it will be necessary to carefully review your customer profile. From the above review, establish a clear statement of your advertising goals.

A Prescription for Starting a Healthy Business

Starting a new business is an exciting time. With so much information available today, how is a person to know what will work for them? Everyone should know that having a plan is key to business success. Developing a plan is the part that scares, confuses and eludes many emerging business owners. We recommend that business owners treat their plan like a Prescription; Think of each step forward as a dose of medicine designed to give you a healthy business.

Before you start a business there some key decisions that must be answered;

1. Who are my customers?
2. Where are my customers?
3. How will I attract my customers?
4. How will I delivery my product/service to my customers?
5. How will I manage my finances?
6. Can I afford this?

Within each of these questions are the building blocks of a healthy business. To many, these questions seem out of order, or are not all inclusive of what is needed to start and maintain a healthy business. We could not disagree more as these questions are the Prescription for a Healthy Business.

Who and where are my customers?

No business can be successful without customers. To not know your customers is one of the biggest mistakes small business people make. The consumer is becoming more educated and has more buying opportunities today than ever in the past. Additionally, the consumer has become more cost conscientious and uses a more thoughtful buying strategy today than ever before. Knowing what your product or service does for your customers is the easy part, understanding that customer and how to attract them to your product or service is the harder part.

Most of the time, new business owners come from a business where they dealt with customers using the particular product or service that will be the breadwinner for their new business. Profiling who these customers are will help the business owner gain the insight needed to knowing who the customers are. It’s important to understand your company’s position on competition. Make sure you are not bound by a non-compete or some other non-disclosure or confidentiality agreement prior to profiling customers.

If you’re moving into a new area or are under some sort of confidentiality or non-compete clause, subscribe to a data mining service that can help you understand who your customers are. Services such as Sales Genie, Hudson or Dun & Bradstreet offer cost effective mining tools that can put customer information in front of you so you know all you need to know about your potential new customers.

How will I attract my customers?

Once you know who your customers are and where they are doing business and what they may need of your product or service, a plan can be made to attract them to your company. Understanding what customers look for when making buying decisions can be difficult for some and seemingly easy for other. Many items or services that are commodities may be chosen for price or ease of delivery. Other things may be chosen by necessity, region or rarity. Finally, there is a relationship purchase, where you have an established relationship with someone in your customer’s company that can influence the buying decision; each of these different buying parameters must be understood for your particular area of expertise or product line.

Commodity items will be the most difficult area for a new business to get into, if you don’t have an advantage with location or relationship. Competition is made tougher due to more businesses competing for the same customer base. There are ways to differentiate you from others by having a better company image, customer services or delivery model that might better define your company from the others. Keeping your image can be as simple as a professional clean look, easy to understand ordering guidelines and quick response to questions, concerns or issues.

Using your regional advantages or the availability to get rare or hard to find items should be incorporated into your image or presentation so that companies know intuitively that you’re different from your competitors. Using a professional branding company to help you define your image and understand how to reach them in different ways will be an investment that will have a good return on investment if you have a good understanding of your message and customers.

Social media outlets such as Facebook, Twitter and LinkedIn can be good avenues for some businesses, but all of them are still new to the marketing game and their impact on buying decisions is still hard to measure. However, all offer free accounts and should be implemented to support your brand and give your company one added access point to the markets.

Having a website is important as is a good email address. Websites do not need to be complex or overly flamboyant to be successful. People appreciate the ability to quickly access a webpage and efficiently understand a company and their product or service offering. Having an email address that is easy to remember and use will help people to communicate with your company and give you an opportunity to begin to capture communication history with potential customers.

How will I delivery my product/service to my customers?

Product or service delivery is a very important aspect of your business. The delivery of products or services is synergistic with Customer Service, and at the same time it is wholly separate. Product delivery failures can meet or exceed customer expectations and still be inefficient and costly and hamper a growing business.

Understanding how the market expects delivery of your company’s product or service is only the first part. Products and services can be reliant on the supply chain. The procurement of vendors and contractors that will aid in the development or delivery of end products or services must be understood and in place at all times; Failure in your supply chain is a failure of your company.

Make sure you hold vendors and contractors to the same standards you expect from employees, or even better, to the standards you want to be held to by your customers. Create vendor performance policy and procedures that are bullet pointed and simple. Only use complex contracts and vendors terms if your particular industry requires special legal treatment or you have proprietary or special contractual obligations. Using complex legal documents when simple business processes suffice can lead to inefficiency, poor relationships and difficult issue resolutions.

Develop a customer feedback program that is simple and easy to give to customers and to track. Make the customer’s review part of regular employee meetings so that your staff understands what the customer is saying about you, your products and your staff. Use criticism as a development tool, not a disciplinary tool, and keep looking forward as you refine your business and the delivery of your products and services.

How will I manage my Finances?

Finance management is not something that you just know. Getting help from a professional in setting up your company will establish a solid legal foundation to build your business. To be a Sole Proprietor, Limited Liability Company or Corporation are all important decisions that set your financial future on a solid foundation.

There are a multitude of companies that can help you decide which legal formation is right for you; LegalZoom is one company that specialize in helping people understand and choose the right corporate structure.

Choosing an Accountant is another important choice. Understanding your taxing requirements and having guidance is crucial to long term financial success. The penalty for ignorance in the tax law is expensive, as most government entities have stiff penalties for delinquent filings and tardy payments of Sales Taxes, Franchise Taxes, Payroll Taxes and more.

Having an organized system to keep track of your money is also very important. There are a multitude of choices for financial tracking systems. Retail environments may get by with a simple cash drawer and ledger, or require a cash register or point of sale system. Other companies may need to track inventory, customer and vendor ledgers along with accounts receivable, payable and payroll. All of these financial issues can be tracked with simple ledgers or fully functional accounting systems such as QuickBooks, Peachtree or something even more complex. There are sites like FindAccountingSoftware.com that can help to understand the choices and how they apply to your particular business.

The key issue to remember most of all is that you should never commingle your personal money with your business money. Keep written records to make life easier on you and your support people. When it comes to your money, your chances for success will be increased immeasurably when your money is counted in an organized and structured way.

Can I Afford This?

Often times a person starts a business and quickly runs out of money. The cause of this is almost always a complete lack of planning. We have traced the reasons for running out of money to:

1. Not knowing the customer.
2. Not knowing where the customers are.
3. Not having a plan to attract customers.
4. Not having a plan to delivery products or services.
5. Not understanding the financial needs or implications of business decisions.

Creating a Business Plan that addresses the six major areas outlined in this article will set a foundation that any business owner can build on and be successful. The Business Plan will identify anticipated revenue, expenditures and market issues that will affect both in the near and short term. Also understanding your personal financial needs and what you can expect to take from the company while you build it, will help to establish a financial plan that the business should adhere to with no exceptions. Often people see cash coming into their business and spend that money before executing a planned policy or procedure required for continued growth.

If during the plan development process, your financial projections don’t provide you with a clear path to financial success, talk with a professional about how you can resolve the shortages you may anticipate during growth and understand the cost of borrowing or using credit cards or other financial options available. SBA and SCORE have programs to help small business people understand the costs of doing business. They are generally free and should be considered if paying for help is not an option.

Finally, if you find the financial risk causes personal, professional or family stress, consider options like taking on a partner or finding a company in the industry to learn more about what you want to do. Sacrificing one’s personal well being or that of his friends and family should not be an option to admitting that a plan is too aggressive or risky.

By having a prescription for success before you start a business, you will give yourself a much better chance at success. Structure is key to success in any applied program and these measures should be written down to paint a picture that you can live with going forward. As your company grows and becomes successful, you may have the opportunity to add employees, more customers and even more locations. By implementing a prescription for success as your company changes, you will help to create a viable business that you, your employees and your customers can rely on.

How To Start A Business And You Really Make Money In Your Own Business

Don’t let all the difficulties in running a business stop you from starting your business.

Don’t even let those who have failed in their businesses discourage you from making money and succeed in the business world.

Let this article be a great encouragement to you at this moment, it doesn’t matter whether you are now thinking of starting a business, in the process of starting your business or you are already in your own business.

Though it is not that easy to start a business, because there are so many things you need to do before you can really make money and succeed in business.

However, I sincerely believe you will make money and succeed when you are running your own business.

It is because I also believe the moment you decided to start your own business, you already have a very strong determination to succeed in the business world.

The most important thing you need to do now is – read this article seriously many times to make sure you really do one very important thing – a good preparation before you start running your business.

The first thing is to make sure you are truly well-prepared and you really know how to make money and succeed in this intense competitive world market.

The second thing is to make sure you are very confident in running your business and you truly know how to prevent earlier failure in business that is so common in the business world.

Moreover, any moment you feel discouraged when you are running your business, always remember to come back and read this article, it will inspire you and help you regain your self-confident, you will move on confidently until you really make money and succeed in your own business.

Here are the Three Important Steps that I believe they will help you tremendously when you are doing your preparation before you start running your business.

Step One: Preparation

1. Business documentation, accounting and taxes

Get a professional accountant to help you in business documentation, accounting and taxes. It will save you time and effort, so that you can immediately focus on business development to bring in profits into your new business.

2. Focus on one business at a time and make it a great success

Don’t be a jack of all trades, starting many businesses before you really make money and succeed in your first business. You can start another business if you want when you really make money and succeed in your first business.

3. Do your market research before you start your business.

Don’t simply start a business just because you think your new product or services can make money in this world market. Seriously put in your time and effort in doing your market research and know precisely whether there is a potential for you to really make money with your new product or services.

4. Get your success master plan ready

Write down your business vision in your success master plan and put in more details on how you want to succeed in business. Read your success master plan regularly and know your daily progress until you really make money and succeed as what you have written in your success master plan.

5. Learn and be a master in selling and marketing

Don’t start a business until you really know how to sell and market your business ideas, your products or services. Selling and marketing are the two main business activities that will bring in profits into your business.

You have to sell your business ideas, products or services to those who joined you and they are helping you in your business – your sales personals, your distributors and traders. You also have to train them and guide them in the selling and marketing of your business ideas, products and services to the consumers and businesses.

6. Create an effective business system

It will minimise your daily work pressure and stress in running the business. It will also make sure the business work flow is always stable and consistent and you truly give the best standard of services to the consumers. You may also franchise your business to expand your business market.

Make sure everyone in your business organization seriously follow your business system and they truly understand the benefits for them when they follow the system, whether it is a simple checklist or work flow chart and monitoring system. New employee will easily take over the work should someone suddenly leaves your organization. Keep on improving your system to meet the growing demand of the consumers as your business grow and expand in the market.

7. Keep a business capital reserve in your new business

It does not matter how much business capital you have raised for your new business, but keep a capital reserve for two years’ business fixed expenses, because you may not make a profit in the first two years. This will enable you to focus on business development without financial worry until you really make a profit in the business.

8. Always be a major shareholder in your own business

Remember to keep at least 60% of your business shares and always be a major shareholder in your own business. Don’t oversell your business shares in the market if you are using your business shares as an exchange for raising your business capital. Otherwise, even though you are the founder of the business but you will easily lose your post as the CEO – Chief Executive Officer in your own business.

9. Maintain a good physical health condition

Daily exercise, having a good sleep every night and eating a balance diet everyday to make sure your physical health is always in good condition. You will then able to focus on your daily business activity, leading a team of people to really make money and succeed in this intense competitive world market.

Step Two: Start Running Your Business

1. Understand the grand purpose of your emotional feeling

You must truly understand the grand purpose of your emotional feeling and “why it is so important” you must always feel good and happy when you are running your business, so that you know precisely how to allow your wonderful emotional feeling to guide you prevent earlier failure in business and how to really make money and succeed in this competitive world market.

2. Become a great leader in your own business

The moment you decided to start a business, you are already a leader in your own business. As long as you are willing to learn and improve your leadership, you will truly become a great leader, unite and lead your team of people achieving your vision in your own business.

3. Focus on sales and marketing of business ideas, products and services

Your goal in business is to make profit and without making a good profit, very soon you will be out of business. Therefore, you must focus on sales and marketing that will bring in profits into your business.

4. Keep a healthy cash flow in your bank account

Without keeping a healthy cash flow in your bank account, it will also lead you to business failure. Always consult your accountant to make sure you wisely control your business expenses, so that you will never have to face with cash flow problem in business.

5. Create products or services that are truly great and remarkable

Make sure you create products or services that are truly great in solving the consumers’ problems. You must also make sure there is quality consistency in your products or services before you deliver them to the consumers.

6. Do not sell inferior quality products and services to consumers

If you are selling other people’s products and services, make sure you sell products and services that are truly great and remarkable. Inferior products and services will bring more problems and inconvenience to consumers and ruin all your efforts in building the business, and it can also bring you to earlier business failure.

7. Provide excellent services to consumers

Always give the world’s best services to the consumers. Make sure they really feel good and happy when they are buying your products or services and they truly enjoy a long-term good experience in using your products or services. The consumers will be very happy to recommend your products or services to potential customers.

8. Do not expand your business too fast

Seriously put in your time and effort to grow your new business. Make sure your business is stable and really make profits before you think of expanding your business in this world market.

9. Helping the world economic climate to improve

When you are in business, you are also here to help those who are starting their own business and those who are already in business to succeed in business. The easiest way to do it is encourage them to read this article. When many businesses in the world succeed, the world economic climate will improve. Consumers and businesses in the market will have more money to buy your products or services. Your own business will also easily succeed and flourish in this world market.

Step Three: Don’t Give-Up Until You Really Make Money And Succeed

1. Do not afraid of intense market competition

Intense market competition is always good for you and all business people. It is here to stimulate your powerful mind to think and you will then come out with new business idea, new marketing strategy, new product or new form of services to compete with others in this world market. Intense market competition is here helping the growth of businesses and the economic growth of this wonderful world you live, it is truly the wonders of the business world.

2.You must not afraid if your business suddenly turn bad

In every unpleasant situation that is happening in your business, there is always a great benefit for you – it is forcing you to make the necessary changes and you will see an impressive improvement in the way you run your business.

3. Have a strong determination to succeed in business

It is truly your determination to succeed that will help you go through all the troubles in business. It is also truly your strong determination to succeed that will make sure you will not easily give-up until you really make money and succeed in your own business.

Conclusion:

1. Read this article seriously many times until you really do a good preparation before you start running your business. Whenever you feel discouraged when are running your business, always remember to come back and read this article, it will truly inspire you to move on until you really succeed in business.

2. You must truly understand the grand purpose of your emotional feeling and know precisely “why it is so important” you must always feel good and happy when you are running your business, so that you know how to allow your wonderful emotional feeling to guide you really make money and succeed in your own business.

3. Sincerely share this article with as many business people as you can to help them succeed in business. When many businesses in the world succeed, the world economic climate will improve, your business will also easily succeed in this world market. Isn’t it wonderful in the world of business?