Why Start a Home-Based Business?

It’s well accepted that small businesses form the backbone of the United States and world economies. In recent years, no part of the small-business sector has grown as dramatically as home-based businesses, which now comprise 52 percent of all small businesses and annually contribute $300 billion to the United States economy.

A survey of home businesses conducted in 2008 by the Cleveland-based Council of Smaller Enterprises (COSE), revealed that 79 percent of the surveyed companies had annual gross revenues in excess of $51,000. A report by the United States Small Business Administration (SBA) points out that 25 percent of home-based businesses had an annual gross income of between $100,000 and $500,000, and in 2000 there were 20,000 home businesses grossing more than $1 million.

Many successful home businesses have never moved away from their home base, while others, such as Lillian Vernon, Hewlett-Packard, Apple Computer, Google, Bonne Bell, and Xerox began in the founder’s home, garage, or basement and grew into mega-corporations.

The COSE survey found that home-based businesses create jobs beyond just employing the owner. Almost one-half had at least one employee, and 17 percent employed three or more workers. The survey revealed that most home-business owners are dedicated people who enjoy the benefits of working from their homes and want to continue to do so, dispelling the myth that running a home-based business is a stopgap measure until one finds a “real” corporate job.

Until just a few years ago, there was a stigma attached to home-business owners. The sense was that the businesses were temporary or “play” businesses. But with the proliferation of both virtual employees and home businesses, such biases are seldom heard today.

Practically any kind of business can be operated from a home – if the house is big enough or the business is small enough, and providing that local regulations permit it. I have consulted with single practitioners sup-plying consulting services, with photographers with in-home studios, with printers running presses in their basements, with light-bulb distributors whose garages are full of inventory, with a garment manufacturer staffed with almost a dozen people working in her basement, and with companies whose offices are in the owner’s homes but which have plants or warehouses in industrial parks.

Whether you are expanding a hobby into a business, starting a consult-ing service, or want to establish a manufacturing or distribution operation, operating your business from home can provide a lifestyle that will be the envy of your friends.

For an ambitious young person, an employee weary of punching a time clock, a worker who has lost a job, or a retiree seeking a second career, the lure of entrepreneurship can be mighty tempting. The lowest risk way of starting a business is at home which can often be accomplished with just a small investment. What is required is a marketable idea fueled with passion and nurtured by a dedicated and determined owner exercising good business practices.

Online Business For Newbies – 3 Key Factors to Jump Start Your Online Business

Starting an online business does not have to be a huge or a difficult task. In most cases it is much simpler than opening other forms of businesses. However there are factors that seriously need to be considered in order to safeguard your interests and help you better with your success.

Here are 3 key factors needed when starting your online business:

1) Choose a product of which you are interested and have some knowledge about. This has two major advantages. First, since the product is something you have a passion for, you will more than likely find it easy to commit yourself with it.

Second, starting an online business can be complicated. If you have the advantage of already knowing everything about the product you are going to be dealing with, it will greatly simplify your job and let you concentrate on the other aspects of starting the business.

If you decide on a product that you know little about then you could be in for some potential trouble. You will have to spend time learning all you can about the product. This means that it will take you longer to get your online business up and running which could lead to delayed income from making sales – not a good idea for a beginning business.

2) Research and study everything there is to know about a business before you invest your time and money. Learn what different techniques and strategies are needed for an internet business. This will be your business and, unless you have a staff of people, you will be the person who will do the work.

3) Be patient – starting an online business doesn’t always mean that you will be successful overnight. As with any other business it takes time and commitment from you to make it work. The most important thing is that you start your business properly from the beginning.

One way to help ensure this is to get yourself a personal coach or mentor. As a Newbie you will have many questions about your online business and you won’t always find the answers in eBooks or canned courses that you buy on the internet. Having a personal coach to directly answer your questions will make your life so much easier and less frustrating as you begin and continue to develop your online business.

If you would like more information about online business development for Newbies, we have just completed a new free eBook on the subject.

Download the free eBook.

Can Your Home Based Business Grow Without You Having to Borrow?

You may think of taking loans before expanding your home based business like many other businesses do. As you grow one of the most important challenges you face is the need for additional capital. Many times, your business will require the need for extra cash flow in order to reach the next level.

Here are some strategies which will help you in eliminating the need for loans without having to sacrifice the growth of your business:

Examine your cash flow: The most important step in your home based business is to examine your cash flow. You can check if your receivables from the slow paying are good enough to fund your expansion plans. You need to be strict with the policy of payment and cash upfront. You can offer discounts to ease the payments as a goodwill gesture and the client retention plan. Keep the inventory and billing records, check the balance accounts, which are due and pursue the payments after the negotiated time.

Expand your profits: For your business opportunity to grow, you can utilize the profits for business expansion. You can increase the sales of the products which have proved to be profitable in the past. You might need to focus more on your sales and marketing. Consequently marketing will prove to be effective for increasing the profits.

Accelerate income: You can increase your income by raising your prices or fees. However, it should be done in a way that you do not loose your clients. You can add complimentary products and services that fit in along with your product.

Decelerate cash flow: You can preserve your capital and negotiate with vendors for the period limiting to 40-45 days for the payments.

Form a strategic alliance: You can enter into product alliance with another business as this plan allows you to offer each others products to your respective customers. This opens up a scope of variety to your existing customers without you having to make additional investments.

Form a strategic marketing alliance: You can form a marketing alliance with someone who is also running a home based business. This gives an opportunity to gain increased access to multiple services and customer exchange. However, you will need to plan this in such a manner that you do not violate your customer privacy.

Branch out to related products and services: You can expand your product line of services by choosing products, which are related to your existing ones. By doing this you can save a lot of money on the marketing costs.

Being the boss of your home based business and dreaming of expansions may not be an easy task but with proper management and financial tactics, you should be able to pull it off.