This article is directed to all you parents out there
with pre-school children who would prefer to quit your jobs
and stay at home with the kids but think you can't because
you think you "need" a second income. Don’t be so sure.
That 9 to 5 grind may be costing you more than it’s paying
you.
Let's say you're a parent of two pre-school children and
you're earning $25,000 a year ($500 a week) in your full-
time job. Let's see where the money goes.
First of all, you don't have family nearby to care for your
children while you're working so you put them in daycare.
That takes care of $150 a week, leaving $350.
You need a car to get to work and your kids to daycare.
Let's be optimistic and say you have only a modest car
payment of $50 a week. Your other expenses are fuel,
insurance and general maintenance. Fuel is $25 a week,
insurance $10. Allow another $10 a week for new tires,
servicing and repairs. So $95 a week goes towards your car.
That leaves $255 out of your weekly paycheck.
You work in a professional office so you must dress
accordingly and be well-groomed. Allow $10 a week for
clothes and accessories, another $5 if you're female for
cosmetics and haircare. There's another $15 a week leaving
you $240 out of your weekly paycheck.
With so much to do to get the kids organized in the morning,
you don't have time to make your lunch so you buy it every
day. At $5 a day that's $25 a week. You're down to $215 a
week now.
And after putting in a full day at work you don't always
have the time or energy to cook a family dinner from scratch
each night and so once a week you pick up take-out on the
way home ($20 for four people) and spend more on
prepackaged foods at the grocery store each week. Let’s put
this at another $20 a week. This additional $40 a week for
convenience foods leaves you $175 out of your weekly
paycheck.
Still worth it, you say? Oops … forgot about taxes, social
security and health insurance! Better deduct another $100
a week for that little lot. Now you’re at $75.
Now, you tell me, is $75 worth working a 40 hour week for?
Is your time really worth as little as $1.80 an hour? And
that’s not even taking into account what your income does to
your partner’s tax bracket! Without being able to claim you
as a dependant it may put it over the top and the increased
tax paid on your family’s primary source of income could well
mean that the net contribution of that second income is a
deficit! If that’s the case, it’s actually COSTING you to
work outside the home.
If you find yourself in this situation, there is an answer
a home-based business. You can forget about daycare costs,
you’re there! How difficult do you think it would be to make
$75 a week working from home? Easy! In fact, it would not
be difficult to generate the same level of income from your
home business as you were generating from your full-time job.
But because you don’t need to incur the unnecessary expenses
such as daycare, vehicle expenses, clothing and food, you can
be MUCH better off. Not only that, you can now claim home
office tax deductions! And all of that’s just focusing on
economics. Factor in lifestyle and family issues and a home-
based business can literally take your life back and give
you back to your family.
Sunday, October 21, 2007
Friday, October 5, 2007
Choosing the right home business
Pay any attention at all to your email inbox and you'd be
forgiven for thinking that the only way to run a business
from home is on the Internet. Sure, many people are
running spectacularly successful Internet-based home
businesses. Many, many more are doing so even more
spectacularly unsuccessfully.
But what if you're not interested in running an Internet
business? What if you want to start and run a home
business the old-fashioned way? Where do you start?
Actually starting any home business is the easy part.
The hard part's deciding what that business should be.
So how do you even start the process of deciding on the
right home business for you? The key is to be methodical,
realistic, objective and patient.
Step 1 : Personal Inventory
The first place to start is to inventory your skills,
experience, interests, and personality characteristics.
These are what you have to work with - your raw
ingredients, so to speak.
Make a list of personal qualities and factors that you can
throw into the mix. Include things like:
=> your personal background;
=> training and education;
=> work and volunteer experience;
=> special interests and hobbies;
=> leisure activities;
=> your personality and temperament.
All of these qualities and factors make up what you know
and what you're good at.
Step 2 : Identify What You Like
It's one thing to know a lot about something or be good at
it. It's quite another to enjoy it enough to want to make it
your life's work. So, remove from the list you created in
Step 1 anything that you don't really, really like doing or
which plain doesn't interest you. No matter how good you
are at it. If you're lucky enough to like what you're good at,
as a general rule, stick with what you know.
Step 3 : Match Your Likes With Marketable Activities
If Steps 1 and 2 still haven't suggested feasible home
business ideas, review the following activities that have
proven marketable for others and weigh them against
your "likes" from Step 2:
Crafts - pottery, ceramics, leadlighting
Health and Fitness - aerobics instructor, network marketing
for a health products company, home health care
Household Services - cleaning, gardening, shopping
Professional Services - attorney, architect, interior
designer
Personal Services - make-up artist, hairdresser
Business Services - business plan writer, meeting planner
Wholesale Sales - antique dealer, dropshipper
Retail Sales - children's clothing, widgets
Computers - web design, internet training.
You get the idea. This is not an exhaustive list, obviously.
You can visit the AHBBO Ideas Page for a list of over 500
home business ideas at http://www.ahbbo.com/ideas.html .
Step 4 : Make a List of Business Ideas That Fit With Your
Likes From Step 2
By the time you're done, you'll have a hitlist of possible
matches between your skills and interests on the one
hand and home business ideas utilizing those skills and
interests on the other.
Step 5 : Research
Armed with your list from Step 4, identify those ideas that
you think have marketable potential and then research
whether that belief is accurate. In order to have
marketable potential, the idea must satisfy the following
criteria:
=> It must satisfy or create a need in the market. The
golden rule for any business is to either find or create a
need and then fill it.
=> It must have longevity. If your idea is trendy or faddish,
it doesn't have longevity. Go for substance over form in
all things.
=> It must be unique. This doesn't mean you have to invent
something completely new but it does mean that there has
to be some *aspect* of your product or service that sets it
apart from the competition. This is easy if you go for the
niche, rather than mass, market. Don't try to be all things
to all people. You'll only end up being too little to too many.
=> It must not be an oversaturated market. The more
competition you have, the harder it will be to make your mark.
It's unrealistic to expect no competition, of course. In fact,
too little competition is a warning sign either that your business
idea has no market or that the market is controlled by a few
big players. What you want is healthy competition where
it's possible to differentiate yourself from competing
businesses.
This all gets back to uniqueness. If you can't compete on
uniqueness, you must compete on price (or convenience).
If you're forced to compete on price alone, that just drives
down your profit margin. Not smart business.
=> You must be able to price competitively yet profitably.
The price you set for your product or service must allow
you to compete effectively with other businesses in your
market, it must be acceptable to consumers and it must
return you a fair profit. If any one of these three is off,
move on.
=> Your business must fit with your lifestyle. If you're
a parent of young children and you primarily want to start
a business from home so you can stay home with them,
a real estate brokerage business that requires you to be
out and about meeting with prospective clients is obviously
not going to work.
You'll instead need to choose a business that can be
conducted entirely (or near enough entirely) from within the
four walls of your home office. Similarly, if your business idea
would involve having clients come to your home, you're not
going to want an unruly 3 year old underfoot as you're trying
to conduct business.
=> Your financial resources must be sufficient to launch and
carry the business until it becomes profitable. No business is
profitable from day one, of course. But some are quicker to
break even than others. If your business requires a
considerable initial capital outlay to start - computer, printer
and software for a web design business, for example - it will
take you longer to break even than if the only prerequisite
was the knowledge inside your own head, such as working
from home as an attorney.
If your financial situation is such that you can't afford to quit
your day job until your business is paying its way, this, too,
will mean it will take longer to break even than if you're able
to devote every waking hour to your business. Just do what
you have to do. That's all any of us can do.
Step 6 : Business Plan
Once you've gone through the above process and identified
what appears to be the right business for you, the final "gut
check" is to write a business plan for your business, much as
you would for a presentation to a bank for financing. Include
sections for strengths, weaknesses, opportunities and threats,
and set goals for what your business needs to achieve for
you, by when, and how you are going to get there.
There are plenty of good resources online about how to
prepare a thorough business plan.
Although it may seem like a waste of time and effort to
complete a business plan if you don't intend to seek outside
financing, taking the time and exercising the discipline needed
to really focus your mind on the important issues facing your
business, you will be forced to take a long hard look at your
idea through very objective and realistic eyes.
If your idea passes the business plan test, then you can be
reasonably confident that this is the right business for you.
If you come away from this exercise feeling hesitant,
uncertain and unsure, either do more research (if the reason
for your hesitancy and uncertainty is lack of information) or
discard the idea (if it's because you don't think your idea is
going to fly). If this happens, just keep repeating Steps 5
and 6 until you end up with an idea and a business plan that
you're confident is going to work!
Although it's frustrating to wait once you've made up your
mind to start a business from home, this really is one situation
where the tortoise wins the race. By taking a methodical,
systematic and disciplined approach to identifying the right
home business for you, you give your business the best
possible chance for long-term survival, hopefully avoiding
some very expensive mistakes along the way.
forgiven for thinking that the only way to run a business
from home is on the Internet. Sure, many people are
running spectacularly successful Internet-based home
businesses. Many, many more are doing so even more
spectacularly unsuccessfully.
But what if you're not interested in running an Internet
business? What if you want to start and run a home
business the old-fashioned way? Where do you start?
Actually starting any home business is the easy part.
The hard part's deciding what that business should be.
So how do you even start the process of deciding on the
right home business for you? The key is to be methodical,
realistic, objective and patient.
Step 1 : Personal Inventory
The first place to start is to inventory your skills,
experience, interests, and personality characteristics.
These are what you have to work with - your raw
ingredients, so to speak.
Make a list of personal qualities and factors that you can
throw into the mix. Include things like:
=> your personal background;
=> training and education;
=> work and volunteer experience;
=> special interests and hobbies;
=> leisure activities;
=> your personality and temperament.
All of these qualities and factors make up what you know
and what you're good at.
Step 2 : Identify What You Like
It's one thing to know a lot about something or be good at
it. It's quite another to enjoy it enough to want to make it
your life's work. So, remove from the list you created in
Step 1 anything that you don't really, really like doing or
which plain doesn't interest you. No matter how good you
are at it. If you're lucky enough to like what you're good at,
as a general rule, stick with what you know.
Step 3 : Match Your Likes With Marketable Activities
If Steps 1 and 2 still haven't suggested feasible home
business ideas, review the following activities that have
proven marketable for others and weigh them against
your "likes" from Step 2:
Crafts - pottery, ceramics, leadlighting
Health and Fitness - aerobics instructor, network marketing
for a health products company, home health care
Household Services - cleaning, gardening, shopping
Professional Services - attorney, architect, interior
designer
Personal Services - make-up artist, hairdresser
Business Services - business plan writer, meeting planner
Wholesale Sales - antique dealer, dropshipper
Retail Sales - children's clothing, widgets
Computers - web design, internet training.
You get the idea. This is not an exhaustive list, obviously.
You can visit the AHBBO Ideas Page for a list of over 500
home business ideas at http://www.ahbbo.com/ideas.html .
Step 4 : Make a List of Business Ideas That Fit With Your
Likes From Step 2
By the time you're done, you'll have a hitlist of possible
matches between your skills and interests on the one
hand and home business ideas utilizing those skills and
interests on the other.
Step 5 : Research
Armed with your list from Step 4, identify those ideas that
you think have marketable potential and then research
whether that belief is accurate. In order to have
marketable potential, the idea must satisfy the following
criteria:
=> It must satisfy or create a need in the market. The
golden rule for any business is to either find or create a
need and then fill it.
=> It must have longevity. If your idea is trendy or faddish,
it doesn't have longevity. Go for substance over form in
all things.
=> It must be unique. This doesn't mean you have to invent
something completely new but it does mean that there has
to be some *aspect* of your product or service that sets it
apart from the competition. This is easy if you go for the
niche, rather than mass, market. Don't try to be all things
to all people. You'll only end up being too little to too many.
=> It must not be an oversaturated market. The more
competition you have, the harder it will be to make your mark.
It's unrealistic to expect no competition, of course. In fact,
too little competition is a warning sign either that your business
idea has no market or that the market is controlled by a few
big players. What you want is healthy competition where
it's possible to differentiate yourself from competing
businesses.
This all gets back to uniqueness. If you can't compete on
uniqueness, you must compete on price (or convenience).
If you're forced to compete on price alone, that just drives
down your profit margin. Not smart business.
=> You must be able to price competitively yet profitably.
The price you set for your product or service must allow
you to compete effectively with other businesses in your
market, it must be acceptable to consumers and it must
return you a fair profit. If any one of these three is off,
move on.
=> Your business must fit with your lifestyle. If you're
a parent of young children and you primarily want to start
a business from home so you can stay home with them,
a real estate brokerage business that requires you to be
out and about meeting with prospective clients is obviously
not going to work.
You'll instead need to choose a business that can be
conducted entirely (or near enough entirely) from within the
four walls of your home office. Similarly, if your business idea
would involve having clients come to your home, you're not
going to want an unruly 3 year old underfoot as you're trying
to conduct business.
=> Your financial resources must be sufficient to launch and
carry the business until it becomes profitable. No business is
profitable from day one, of course. But some are quicker to
break even than others. If your business requires a
considerable initial capital outlay to start - computer, printer
and software for a web design business, for example - it will
take you longer to break even than if the only prerequisite
was the knowledge inside your own head, such as working
from home as an attorney.
If your financial situation is such that you can't afford to quit
your day job until your business is paying its way, this, too,
will mean it will take longer to break even than if you're able
to devote every waking hour to your business. Just do what
you have to do. That's all any of us can do.
Step 6 : Business Plan
Once you've gone through the above process and identified
what appears to be the right business for you, the final "gut
check" is to write a business plan for your business, much as
you would for a presentation to a bank for financing. Include
sections for strengths, weaknesses, opportunities and threats,
and set goals for what your business needs to achieve for
you, by when, and how you are going to get there.
There are plenty of good resources online about how to
prepare a thorough business plan.
Although it may seem like a waste of time and effort to
complete a business plan if you don't intend to seek outside
financing, taking the time and exercising the discipline needed
to really focus your mind on the important issues facing your
business, you will be forced to take a long hard look at your
idea through very objective and realistic eyes.
If your idea passes the business plan test, then you can be
reasonably confident that this is the right business for you.
If you come away from this exercise feeling hesitant,
uncertain and unsure, either do more research (if the reason
for your hesitancy and uncertainty is lack of information) or
discard the idea (if it's because you don't think your idea is
going to fly). If this happens, just keep repeating Steps 5
and 6 until you end up with an idea and a business plan that
you're confident is going to work!
Although it's frustrating to wait once you've made up your
mind to start a business from home, this really is one situation
where the tortoise wins the race. By taking a methodical,
systematic and disciplined approach to identifying the right
home business for you, you give your business the best
possible chance for long-term survival, hopefully avoiding
some very expensive mistakes along the way.
Tuesday, August 21, 2007
Are you really suitable to run a home business?
Working from home sounds wonderful, doesn't it? No commute;
no boss breathing down your neck; no fixed schedule; reward
for effort; control; work/family flexibility; not having to
worry about being laid off; leaving the office politics way
behind; not having to get dressed up; being with your
children. Is this what comes to mind when you think about
what it would be like to work from home? If so, take a
good hard look before you make the jump from paid to self-
employment.
Although these are all indisputably strong benefits of
running your own home-based business, they need to be
weighed against some pretty harsh realities if you are to
make an informed decision whether a home-based business is
truly right for you. These realities can be grouped into
three main areas: personal, financial and situational.
PERSONAL REALITIES
-> Commitment - you must be totally committed to making a
success of your business. It is important to distinguish
between commitment and mere interest. If what you want to
do as a business is only an interest, your enthusiasm and
motivation may wane over time. You must be absolutely
committed to the success of your business if you are to
achieve the success you desire.
-> Risk-Taker - one of the benefits of owning your own
business is that you don't have to answer to a boss. The
other side of the coin is that there is no-one to fall back
on if things go wrong. If you make a mistake or suffer a
loss, you wear it. For this reason, you must be comfortable
taking calculated risks. If security and stability are very
important to you, perhaps paid employment is a better option.
-> Self Motivation - again, there is no boss to wave a carrot
under your nose to get you moving. You must be able to
motivate yourself to do what needs to be done and that
includes the stuff you don't particularly enjoy doing.
-> Self Discipline - being your own boss means exercising
personal discipline to ensure that the work gets done.
There will be no end of distractions to tempt you away from
the task at hand when you're working from home. You will
need a healthy dose of self discipline to ensure you stay on
track.
-> Patience - starting a home-business is one thing; turning
a profit is quite another. You will not make a profit
overnight. Be prepared to be patient and frugal during the
first few months of your new venture.
-> Reasons - closely related to the need for self-motivation,
your reasons for wanting to work from home will keep you in
the saddle. If your reasons are to get rich quick or work
fewer hours, think again. A home-based business will
definitely not deliver.
-> Flexibility and Adaptability - you may have come from a
corporate environment where you enjoyed a certain status.
You may have had a secretary or assistant to take care of
the more routine aspects of your job description. In your
home-based business you will need to be prepared to wear
many hats, at least in the beginning. This means being
flexible and adaptable, being prepared to learn new skills
and willing to take on new tasks.
-> Willingness to Sacrifice - especially in the early stages
of your business, be prepared to make sacrifices in terms of
time and money to get your business off the ground. You
will need to be prepared to put in long hours and, more
likely than not, get by on less money than you were bringing
home from your paid job.
-> Work Ethic - the backbone of all of the disciplines you
will need to practice in your home business is your work
ethic. If you have a strong work ethic then the need for
personal discipline and sacrifice will come as no surprise.
-> Stress Management - the burden of your business's success
or failure will rest squarely on your shoulders. That's a
lot of responsibility. Consider your capacity for stress
management. If it's not high, learn ways to increase it.
FINANCIAL REALITIES
-> Cash Reserves - if business is slow to start, do you have
sufficient cash reserves to see you through? If not,
perhaps you should consider starting your business part-time
until it is bringing in enough of a profit to sustain you.
-> Retirement Planning - say goodbye to the employer-
sponsored pension plan and hello to the world of IRAs
(Individual Retirement Accounts). You need to think
differently about your retirement plans and should seek the
advice of a qualified financial planner in the early days of
your new business.
-> Health Insurance - say goodbye too to the perks of paid
employment such as free medical, dental, life and disability
insurance. You will need to take out your own cover for
these risks.
-> Vacation - no-one's going to pay you while you take that
two week vacation any more. And, while we're at it, who's
going to run your business while you're away?
SITUATIONAL REALITIES
-> Hard Work, Long Hours - if you think that working for
yourself means you won't have to work as hard or as long,
think again. Most likely it will mean more of both.
-> Interruptions - if you have children at home, be prepared
for constant interruptions. Being with your children, of
course, is one of the main advantages of working from home
but you will need to set limits if your business is to get
sufficient attention. The same goes for your spouse!
-> Distractions - beware of the temptation to take care of
household tasks during the time you have allocated to your
business. It's very tempting to run a load of washing or
vacuum the carpets instead of facing up to that business
task you don't feel like doing right now. Self-discipline
is crucial if you are to avoid procrastination undermining
your productivity.
-> Isolation and Loneliness - if you come from a busy
corporate background, at some point after the novelty of
working from home begins to wear off, you may begin to feel
isolated and even lonely. Be prepared with strategies to
keep the isolation blues at bay.
As you can see, although there are many wonderful reasons to
work from home, there are also many strong reasons why a
home-based business may not be the right choice for you.
Take a good hard look at the above realities and your own
personal qualities and motivations. Do you have what it
takes to make a success of your business? Are you prepared
to do what has to be done? Whatever that is? If so, a
home-based business may very well be just what the doctor
ordered. But, if you have any doubts, look very hard before
you make the leap from paid employment to your own home-
based business. You could very well be jumping from the
frying pan into the fire.
no boss breathing down your neck; no fixed schedule; reward
for effort; control; work/family flexibility; not having to
worry about being laid off; leaving the office politics way
behind; not having to get dressed up; being with your
children. Is this what comes to mind when you think about
what it would be like to work from home? If so, take a
good hard look before you make the jump from paid to self-
employment.
Although these are all indisputably strong benefits of
running your own home-based business, they need to be
weighed against some pretty harsh realities if you are to
make an informed decision whether a home-based business is
truly right for you. These realities can be grouped into
three main areas: personal, financial and situational.
PERSONAL REALITIES
-> Commitment - you must be totally committed to making a
success of your business. It is important to distinguish
between commitment and mere interest. If what you want to
do as a business is only an interest, your enthusiasm and
motivation may wane over time. You must be absolutely
committed to the success of your business if you are to
achieve the success you desire.
-> Risk-Taker - one of the benefits of owning your own
business is that you don't have to answer to a boss. The
other side of the coin is that there is no-one to fall back
on if things go wrong. If you make a mistake or suffer a
loss, you wear it. For this reason, you must be comfortable
taking calculated risks. If security and stability are very
important to you, perhaps paid employment is a better option.
-> Self Motivation - again, there is no boss to wave a carrot
under your nose to get you moving. You must be able to
motivate yourself to do what needs to be done and that
includes the stuff you don't particularly enjoy doing.
-> Self Discipline - being your own boss means exercising
personal discipline to ensure that the work gets done.
There will be no end of distractions to tempt you away from
the task at hand when you're working from home. You will
need a healthy dose of self discipline to ensure you stay on
track.
-> Patience - starting a home-business is one thing; turning
a profit is quite another. You will not make a profit
overnight. Be prepared to be patient and frugal during the
first few months of your new venture.
-> Reasons - closely related to the need for self-motivation,
your reasons for wanting to work from home will keep you in
the saddle. If your reasons are to get rich quick or work
fewer hours, think again. A home-based business will
definitely not deliver.
-> Flexibility and Adaptability - you may have come from a
corporate environment where you enjoyed a certain status.
You may have had a secretary or assistant to take care of
the more routine aspects of your job description. In your
home-based business you will need to be prepared to wear
many hats, at least in the beginning. This means being
flexible and adaptable, being prepared to learn new skills
and willing to take on new tasks.
-> Willingness to Sacrifice - especially in the early stages
of your business, be prepared to make sacrifices in terms of
time and money to get your business off the ground. You
will need to be prepared to put in long hours and, more
likely than not, get by on less money than you were bringing
home from your paid job.
-> Work Ethic - the backbone of all of the disciplines you
will need to practice in your home business is your work
ethic. If you have a strong work ethic then the need for
personal discipline and sacrifice will come as no surprise.
-> Stress Management - the burden of your business's success
or failure will rest squarely on your shoulders. That's a
lot of responsibility. Consider your capacity for stress
management. If it's not high, learn ways to increase it.
FINANCIAL REALITIES
-> Cash Reserves - if business is slow to start, do you have
sufficient cash reserves to see you through? If not,
perhaps you should consider starting your business part-time
until it is bringing in enough of a profit to sustain you.
-> Retirement Planning - say goodbye to the employer-
sponsored pension plan and hello to the world of IRAs
(Individual Retirement Accounts). You need to think
differently about your retirement plans and should seek the
advice of a qualified financial planner in the early days of
your new business.
-> Health Insurance - say goodbye too to the perks of paid
employment such as free medical, dental, life and disability
insurance. You will need to take out your own cover for
these risks.
-> Vacation - no-one's going to pay you while you take that
two week vacation any more. And, while we're at it, who's
going to run your business while you're away?
SITUATIONAL REALITIES
-> Hard Work, Long Hours - if you think that working for
yourself means you won't have to work as hard or as long,
think again. Most likely it will mean more of both.
-> Interruptions - if you have children at home, be prepared
for constant interruptions. Being with your children, of
course, is one of the main advantages of working from home
but you will need to set limits if your business is to get
sufficient attention. The same goes for your spouse!
-> Distractions - beware of the temptation to take care of
household tasks during the time you have allocated to your
business. It's very tempting to run a load of washing or
vacuum the carpets instead of facing up to that business
task you don't feel like doing right now. Self-discipline
is crucial if you are to avoid procrastination undermining
your productivity.
-> Isolation and Loneliness - if you come from a busy
corporate background, at some point after the novelty of
working from home begins to wear off, you may begin to feel
isolated and even lonely. Be prepared with strategies to
keep the isolation blues at bay.
As you can see, although there are many wonderful reasons to
work from home, there are also many strong reasons why a
home-based business may not be the right choice for you.
Take a good hard look at the above realities and your own
personal qualities and motivations. Do you have what it
takes to make a success of your business? Are you prepared
to do what has to be done? Whatever that is? If so, a
home-based business may very well be just what the doctor
ordered. But, if you have any doubts, look very hard before
you make the leap from paid employment to your own home-
based business. You could very well be jumping from the
frying pan into the fire.
Friday, July 13, 2007
Benefits of having your own home business
Benefits of Having your Own Home Business
No Alarm Call - As anyone who has a regular job can agree, being rudely awoken from a comfortable night's sleep, on a cold winter's morning is one of the pet 'hates' of having a full time job. Have you ever stopped to think about the toll being taken on your body? Start your own home business and forget those cold, early morning awakenings. Sleep more, feel good, and get up when you feel like it, fresher than ever. Relax a little, watch TV, and start work when you feel right, not when your alarm clock tells you!
No Boss - You may be one of the lucky ones who has the pleasure of working for a nice boss. But even those that do often yearn to be at the helm of the ship. By setting your own timetable and your own tea breaks, you effectively become your own boss. Think about it - never having to answer to your boss again.
No Uniform - The work at home lifestyle comes with numerous advantages, and one of the best perks is being able to wear what you want. No one is going to see you, you could even work in your pajamas. So out with the ill fitting uniforms, and in with your most comfortable pair of jeans and t-shirt.
No Set Hours - Most people with a regular full time job often hate the monotony of the 9 to 5 routine (or should we say regime!). Think how it would feel knowing that on Monday morning, you haven't got to get up and make that repetitive journey to work. Think how it will feel when you wake to a cold rainy morning knowing full well you haven't got to go out in it. Enjoy the benefits of setting your own hours. Work where you want, when you want.
No Travel Costs - Fuel prices are rising, but your wages are not! Sound familiar to you? Fuel prices have soared all over the world and the trend looks to be lasting. In fact, fuel reserves are running low and the increased price of a rare commodity can send some families into the red. For a lot of families, the cost of running an automobile is one of the biggest. Start a home business and your travel costs are zero.
Tax Benefits - Those that run a business from home enjoy numerous tax benefits. We are not financial advisers and we're not going to discuss ways to maximize your tax benefits here. But using your home as a place of work can seriously decrease your income tax bill. Everything from electricity and energy bills, to clothing, and in some cases even your mortgage costs, can be offset against your tax bill. Always seek guidance from a qualified accountant in all tax matters.
Enjoy Time with your Kids - Last, but not least, probably the main reason why many people, especially moms, want to start a home business, is to spend time with the family. Many moms have to stay at home to look after the children, and in some cases, this means a break from work, and a reduction in household income. With the work at home market ever expanding, this no longer has to be a problem. In fact, moms make up roughly 70% of the work at home market.
No Alarm Call - As anyone who has a regular job can agree, being rudely awoken from a comfortable night's sleep, on a cold winter's morning is one of the pet 'hates' of having a full time job. Have you ever stopped to think about the toll being taken on your body? Start your own home business and forget those cold, early morning awakenings. Sleep more, feel good, and get up when you feel like it, fresher than ever. Relax a little, watch TV, and start work when you feel right, not when your alarm clock tells you!
No Boss - You may be one of the lucky ones who has the pleasure of working for a nice boss. But even those that do often yearn to be at the helm of the ship. By setting your own timetable and your own tea breaks, you effectively become your own boss. Think about it - never having to answer to your boss again.
No Uniform - The work at home lifestyle comes with numerous advantages, and one of the best perks is being able to wear what you want. No one is going to see you, you could even work in your pajamas. So out with the ill fitting uniforms, and in with your most comfortable pair of jeans and t-shirt.
No Set Hours - Most people with a regular full time job often hate the monotony of the 9 to 5 routine (or should we say regime!). Think how it would feel knowing that on Monday morning, you haven't got to get up and make that repetitive journey to work. Think how it will feel when you wake to a cold rainy morning knowing full well you haven't got to go out in it. Enjoy the benefits of setting your own hours. Work where you want, when you want.
No Travel Costs - Fuel prices are rising, but your wages are not! Sound familiar to you? Fuel prices have soared all over the world and the trend looks to be lasting. In fact, fuel reserves are running low and the increased price of a rare commodity can send some families into the red. For a lot of families, the cost of running an automobile is one of the biggest. Start a home business and your travel costs are zero.
Tax Benefits - Those that run a business from home enjoy numerous tax benefits. We are not financial advisers and we're not going to discuss ways to maximize your tax benefits here. But using your home as a place of work can seriously decrease your income tax bill. Everything from electricity and energy bills, to clothing, and in some cases even your mortgage costs, can be offset against your tax bill. Always seek guidance from a qualified accountant in all tax matters.
Enjoy Time with your Kids - Last, but not least, probably the main reason why many people, especially moms, want to start a home business, is to spend time with the family. Many moms have to stay at home to look after the children, and in some cases, this means a break from work, and a reduction in household income. With the work at home market ever expanding, this no longer has to be a problem. In fact, moms make up roughly 70% of the work at home market.
Monday, July 9, 2007
TechnoFav Train
*Start copy*Hi everyone! In the interests of friendship and promoting our blogs,
the purpose of this tag train is to add all the blogs on this list to your
Technorati favorites list. In return, everyone else will add you to their Technorati favorites list.
Instructions
1. Go to http://technorati.com/faves/yourblogurl (replace yourblogurl with your Technorati id.)2. Add each and every blog URL on this list as a favorite. Don't worry about Tags as it would take too much time. Click "Add".
3. Then copy everything between and including Start copy and End copy.
4. Paste it into a new blog post in "Compose" mode so all the links are preserved.
5. Add your blog's URL to the end of the list. If you intend to submit multiple blogs then put this list on all your blogs please to be fair to everyone else.
6. Post everything using the title "TechnoFav Train"
7. Next contact 5 friends who aren't on the list and get them to join. The more the better. I am aiming at 1,000 group members, but I'm confident we can find more than that. My secret goal is 5,000 group members and those of you who know me are aware of my promotional persistence. Can you imagine what that will do to all our Technorati rankings?
8. Leave the URL of your post here as a comment and your blog will be updated on the masterlist.
9. Once a week, return to the masterlist and copy it over the list on your blog post.10. Add the new blog URLs to your favorites. This last step is important because if you don't add new blogs to your favorites list, then those new blogs will end up removing you from their favorites list and then nobody wins.11. Finally, increased Technorati ranking to all!
Masterlist
1. http://bigmoneylist.blogspot.com/
2. http://projectheavytraffic.blogspot.com/
3. http://silentrecollections.blogspot.com/
4. envisioned-reality.blogspot.com/
5. http://bloggeraddicter.blogspot.com/
6. http://it-informer.blogspot.com/
7. http://freeenglishresources.blogspot.com/
8. http://leoxa.com/englishforeveryone/
9. http://leoxa.com/everythingyouneed/
10. http://1gamestation.blogspot.com/
11. http://boxofficemovietrailer.blogspot.com/
12. http://the-voice-of-the-spirit.blogspot.com/
12. http://mikhaelwong2.blogspot.com/
14. http://bestcuisines.blogspot.com/
15. http://tennis-worldnews.blogspot.com/
16. http://mensfitnesszone.blogspot.com/
17. http://luxuriousretreats.blogspot.com/
18. http://leoxa.com/internetmarketingresources/
19. http://gadgetfestival.blogspot.com/
20. http://dji-adsense.blogspot.com/
21. http://dji-spam-blocking.com/
22. http://harley-davidson-apparel.blogspot.com/
23. http://masteringmenjaro.blogspot.com/
24. http://www.computersolution.co.cc
25. http://unleashgames.blogspot.com/
26. http://www.betterthanezrah.org/
27. http://www.betterthanezrah.com/
28. http://pierrezrah.blogspot.com/
29. http://www.mariuca.blogspot.com/
30. http://gunnerpress.frih.net/
31. http://danzyworld.blogspot.com/
32. http://kookaboo.blogspot.com/
33. http://solo-flight.blogspot.com/
34. http://iam-maimai.blogspot.com/
35. http://blacknickel.blogspot.com/
36. http://www.neuropatch.com/
37. http://expressforfree.blogspot.com/
38. http://cneil.blogspot.com/
39. http://garrabex.blogspot.com/
40.http://onlineincomemaker.blogpot.com
*End copy*
the purpose of this tag train is to add all the blogs on this list to your
Technorati favorites list. In return, everyone else will add you to their Technorati favorites list.
Instructions
1. Go to http://technorati.com/faves/yourblogurl (replace yourblogurl with your Technorati id.)2. Add each and every blog URL on this list as a favorite. Don't worry about Tags as it would take too much time. Click "Add".
3. Then copy everything between and including Start copy and End copy.
4. Paste it into a new blog post in "Compose" mode so all the links are preserved.
5. Add your blog's URL to the end of the list. If you intend to submit multiple blogs then put this list on all your blogs please to be fair to everyone else.
6. Post everything using the title "TechnoFav Train"
7. Next contact 5 friends who aren't on the list and get them to join. The more the better. I am aiming at 1,000 group members, but I'm confident we can find more than that. My secret goal is 5,000 group members and those of you who know me are aware of my promotional persistence. Can you imagine what that will do to all our Technorati rankings?
8. Leave the URL of your post here as a comment and your blog will be updated on the masterlist.
9. Once a week, return to the masterlist and copy it over the list on your blog post.10. Add the new blog URLs to your favorites. This last step is important because if you don't add new blogs to your favorites list, then those new blogs will end up removing you from their favorites list and then nobody wins.11. Finally, increased Technorati ranking to all!
Masterlist
1. http://bigmoneylist.blogspot.com/
2. http://projectheavytraffic.blogspot.com/
3. http://silentrecollections.blogspot.com/
4. envisioned-reality.blogspot.com/
5. http://bloggeraddicter.blogspot.com/
6. http://it-informer.blogspot.com/
7. http://freeenglishresources.blogspot.com/
8. http://leoxa.com/englishforeveryone/
9. http://leoxa.com/everythingyouneed/
10. http://1gamestation.blogspot.com/
11. http://boxofficemovietrailer.blogspot.com/
12. http://the-voice-of-the-spirit.blogspot.com/
12. http://mikhaelwong2.blogspot.com/
14. http://bestcuisines.blogspot.com/
15. http://tennis-worldnews.blogspot.com/
16. http://mensfitnesszone.blogspot.com/
17. http://luxuriousretreats.blogspot.com/
18. http://leoxa.com/internetmarketingresources/
19. http://gadgetfestival.blogspot.com/
20. http://dji-adsense.blogspot.com/
21. http://dji-spam-blocking.com/
22. http://harley-davidson-apparel.blogspot.com/
23. http://masteringmenjaro.blogspot.com/
24. http://www.computersolution.co.cc
25. http://unleashgames.blogspot.com/
26. http://www.betterthanezrah.org/
27. http://www.betterthanezrah.com/
28. http://pierrezrah.blogspot.com/
29. http://www.mariuca.blogspot.com/
30. http://gunnerpress.frih.net/
31. http://danzyworld.blogspot.com/
32. http://kookaboo.blogspot.com/
33. http://solo-flight.blogspot.com/
34. http://iam-maimai.blogspot.com/
35. http://blacknickel.blogspot.com/
36. http://www.neuropatch.com/
37. http://expressforfree.blogspot.com/
38. http://cneil.blogspot.com/
39. http://garrabex.blogspot.com/
40.http://onlineincomemaker.blogpot.com
*End copy*
Thursday, June 28, 2007
Why choose a Home Business?
Why choose a Home Business?
There are many short and long-term benefits of joining or starting a home business. The tax benefits are very significant, in many cases allowing you to pay for many items with before tax dollars that you might normally pay for with after tax dollars. Generally there is also a large incentive to invest in your own business as most, if not all expenses related to building your home business, whether it is internet/computer related expenses such as hosting to advertising or printing, can be paid for with before tax dollars. Of course many communication, shipping and/or general transportation costs may very well fall under this category. In fact, many people decide to join a home business opportunity entirely for the tax breaks associated with it.
Joining a Home Business also offers unprecedented freedom. There is perhaps nothing more valuable in life than freedom, and working your own home business, especially one that utilizes e-commerce, allows you to eventually decide your own schedule, your own vacation time, and in fact your own destiny. Every year, thousands of people decide to take control of their lives and future by going into business for themselves. Even among those laid off or downsized, self-employment can be as much an act of liberation as desperation. Studies have shown that starting in the early 1980's, home businesses have grown from about 5 to 30 million. This is because people are taking a second look at their priorities. People are asking themselves if the commute to work is really worth it. Is the stress and aggravation worth it. Are you working just hard enouph to avoid getting fired? Are you being paid just enouph to keep you from quiting? Is your work creative and inspirational, and are you making a difference in other peoples lives? Is every day merely a struggle in a dog-eat-dog environment?
Every year, more and more people discover the joy and time freedom of residual income and home businesses. They realize that there so many tangible as well as intangible benefits associated with this kind business. They learn that you do not commute, and there is no dress code. You do not compete with people that you are elbow to elbow with. And once established, you are not restricted to one area. You can travel at will!
There are many short and long-term benefits of joining or starting a home business. The tax benefits are very significant, in many cases allowing you to pay for many items with before tax dollars that you might normally pay for with after tax dollars. Generally there is also a large incentive to invest in your own business as most, if not all expenses related to building your home business, whether it is internet/computer related expenses such as hosting to advertising or printing, can be paid for with before tax dollars. Of course many communication, shipping and/or general transportation costs may very well fall under this category. In fact, many people decide to join a home business opportunity entirely for the tax breaks associated with it.
Joining a Home Business also offers unprecedented freedom. There is perhaps nothing more valuable in life than freedom, and working your own home business, especially one that utilizes e-commerce, allows you to eventually decide your own schedule, your own vacation time, and in fact your own destiny. Every year, thousands of people decide to take control of their lives and future by going into business for themselves. Even among those laid off or downsized, self-employment can be as much an act of liberation as desperation. Studies have shown that starting in the early 1980's, home businesses have grown from about 5 to 30 million. This is because people are taking a second look at their priorities. People are asking themselves if the commute to work is really worth it. Is the stress and aggravation worth it. Are you working just hard enouph to avoid getting fired? Are you being paid just enouph to keep you from quiting? Is your work creative and inspirational, and are you making a difference in other peoples lives? Is every day merely a struggle in a dog-eat-dog environment?
Every year, more and more people discover the joy and time freedom of residual income and home businesses. They realize that there so many tangible as well as intangible benefits associated with this kind business. They learn that you do not commute, and there is no dress code. You do not compete with people that you are elbow to elbow with. And once established, you are not restricted to one area. You can travel at will!
Monday, June 25, 2007
How do I start a home business
From time to time (at least once a day actually) I'll get an
impossible-to-respond-to email that says something like,
"How can I work from home?", or "I want to start my own
home business. Please send info." or even, "Please send
free info.". Naturally such vague, generalized requests are
not, for reasons of time (among others), going to elicit a
particularly helpful response but it does exemplify the
mindset of a proportion of my site visitors - they think they
want to start a home business but where on earth do they
start?
HOW DO I START A HOME BUSINESS?
The best advice I can give to someone who asks a question
as vague as this is that they're asking the wrong question.
The first question they should be asking themselves is:
"SHOULD I start a home business?", not HOW do they do so.
The person who asks how to start a home business has not
given much, if any, thought to what they might do as such
a business (otherwise, their question would be "How do I start
an errand service home business?" or "How do I start a gourmet
gift basket home business?").
So, first things first. Why do you want to start a home
business? What are the advantages as you see them?
What are the disadvantages? What entrepreneurial qualities
do you bring to the table that make you think you could
make a success of your own business? What is your plan?
What product or service will you market? Who are your
customers? When will you give up your day job? Are you
thinking about this because you just LOST your day job
(if so, warning bells should be ringing very loudly!)? A home
business is most definitely NOT for everyone and it's
certainly not a solution to unemployment per se.
There are financial considerations too, obviously. How will
you support yourself until you generate a profit? Where will
you obtain financing?
Assuming you work your way through the above considerations
and conclude that you do, indeed, want to start your own
home business, then, and only then, should you ask "HOW do I
start a home business?"
There are as many answers to this question as there are
individuals who ask it. There is no one answer that fits all
sizes. Generally speaking, however, the process of starting
one's own home business can be broken down into seven
broad steps.
=> IDENTIFY YOUR PASSIONS
If you're truly starting at ground zero and you don't already
do something on the side that you'd kind of like to see if
you could make fly, your first step is to decide what it is
you'd like to do as your business.
I'm a firm believer in following your passion, whether that
be for gardening (start a herb and spice business or
cultivate cuttings for distribution via mail order), lead-
lighting (design and create stained glass lampshades),
accounting (run a home-based small business accountancy
service) or website design. It doesn't matter whether
other people are equally as passionate about what
you're passionate about. It's YOUR passion that counts
and it's YOUR passion that will propel you towards
success. Do something you love to do in other words.
Make your work your joy and you won't be able to help
but succeed.
=> IDENTIFY A NICHE MARKET FOR YOUR PASSION
Now, it's one thing to know what you're passionate
about, it's quite another to identify an unmet need in
that field. But that's what you must do if you want to
turn your passion into a truly profitable business venture.
Identifying your niche is a pretty straightforward
process:
1. Identify your general category and sub-category
Let's say your general passion is gardening. Gardening is
your general category. Let's also say that you're
particularly interested in growing herbs and how they
can be used for cooking and medicinal purposes. Herb
growing is your sub-category.
2. Hang out with people interested in your sub-category
In order to identify unmet needs in your sub-category
(step 3.), you must find out from people interested in
your sub-category what they're looking for that they
can't find. A good way to find out is to hang out where
they hang out - offline and on. Offline, you may belong
to a local gardening club or cooking class at which you
hear that so-and-so has been looking high and low for
a certain type of specialty herb that isn't commonly
grown in your country. Online, you may sign up for
mailing lists and hang out in newsgroups to listen to
what people are asking time and again.
3. Identify unmet or under-met needs in your sub-category
If you follow step 2, chances are, if you hear the same
things repeatedly, you've found potential unmet needs
or needs that aren't being adequately serviced by your
competition. After all, if the need is being met, it won't be
the subject of repeated questions.
4. Inventory your experience, interests and competencies
In order to decide what to focus on in particular out of
a group of potential unmet or under-met needs, take account
of your experience, interests and competencies. People are
generally good at what they enjoy and are interested in,
after all.
5. Fill the unmet or under-met need
Once you've identified the unmet need(s) in your
sub-category, you can start thinking about how your
business can fill that unmet need.
=> SURVEY THE MARKET AND YOUR COMPETITION
At this stage, you need to take your business idea
and survey your niche market and your competition.
If you have competition, can you be better? If your
market is dominated by a few large, well-established
players and you really don't bring anything new or
different to the table, then the competition is probably
going to be too stiff. On the other hand, if that
competition is focused on the high end of the market
leaving the lower end largely uncatered for, then this
could well be an excellent niche for you.
The bottom line is to identify your best competition in
your niche and decide whether you can be better.
Only if you believe you can be the best in your
niche should you proceed. If not, keep looking until
you find a niche perfectly suited to your particular
blend of experience, interests and competencies in
which you can be the absolute best.
=> BUSINESS PLAN
Once you've identified your niche and surveyed your
market and competition and are reasonably confident
you can be at least as good as your best competitor,
it's time to get down to brass tacks.
This is where you take your business idea and shape
it into a battle plan. Formulating a business plan is
goal-setting for your business.
Once you've thought through and recorded your
business plan you should have an extremely
thorough understanding of your industry and the
challenges you must overcome to make a success
of your business. Take your business plan and
establish objectives, goals (which support attainment
of the objectives) and tasks (which support attainment
of the goals).
Put your tasks and goals into action to achieve
your objectives. Decide where you want your business
to be in five years time and work backwards until
you have 5, 4, 3, 2 and 1 year objectives and goals
to support them and tasks to support the goals. The
end result should be a daily to-do list of things that
will directly lead you closer to the achievement of
your goals and objectives.
=> ACTION
Once you have your daily to-do list, DO IT! The best laid
plans of mice and men are useless if not translated into
action. It's action that will propel you and your business
towards success. Mere thoughts and plans are necessary
but insufficient. They must be translated into activity.
=> TRANSITION
If possible, transition from whatever you're doing now
into your business. Test the waters, in other words.
If you're currently in a paid job, stay there and run
your business part-time, taking the risk on someone
else's nickel until you can be confident this thing's
going to float. Know when you're better off devoting
your full time and attention to your business (i.e.,
know when an hour of your time is worth more when
spent invested in your business than your job) for
that is the time to shift into full-time entrepreneurship.
=> MAKING THE LEAP
Finally, make the leap with faith and courage. Sure,
you'll have moments of self-doubt, thoughts of
"can I do this?" when you're wondering where the next
order's going to come from and you think back to the
nice, safe, secure paycheck you used to be able to
count on in your job. But recognize these insecurities
for what they are. They are your mind playing tricks
on you. You can do anything you set your mind to.
You just have to want it badly enough. So, when the
time comes to make the leap, do it and hold nothing
back. Your success or failure is up to you alone.
There are no excuses.
So, in answer to the question "how do I start my own
home business?", it's quite simple really. You do what it
takes.
impossible-to-respond-to email that says something like,
"How can I work from home?", or "I want to start my own
home business. Please send info." or even, "Please send
free info.". Naturally such vague, generalized requests are
not, for reasons of time (among others), going to elicit a
particularly helpful response but it does exemplify the
mindset of a proportion of my site visitors - they think they
want to start a home business but where on earth do they
start?
HOW DO I START A HOME BUSINESS?
The best advice I can give to someone who asks a question
as vague as this is that they're asking the wrong question.
The first question they should be asking themselves is:
"SHOULD I start a home business?", not HOW do they do so.
The person who asks how to start a home business has not
given much, if any, thought to what they might do as such
a business (otherwise, their question would be "How do I start
an errand service home business?" or "How do I start a gourmet
gift basket home business?").
So, first things first. Why do you want to start a home
business? What are the advantages as you see them?
What are the disadvantages? What entrepreneurial qualities
do you bring to the table that make you think you could
make a success of your own business? What is your plan?
What product or service will you market? Who are your
customers? When will you give up your day job? Are you
thinking about this because you just LOST your day job
(if so, warning bells should be ringing very loudly!)? A home
business is most definitely NOT for everyone and it's
certainly not a solution to unemployment per se.
There are financial considerations too, obviously. How will
you support yourself until you generate a profit? Where will
you obtain financing?
Assuming you work your way through the above considerations
and conclude that you do, indeed, want to start your own
home business, then, and only then, should you ask "HOW do I
start a home business?"
There are as many answers to this question as there are
individuals who ask it. There is no one answer that fits all
sizes. Generally speaking, however, the process of starting
one's own home business can be broken down into seven
broad steps.
=> IDENTIFY YOUR PASSIONS
If you're truly starting at ground zero and you don't already
do something on the side that you'd kind of like to see if
you could make fly, your first step is to decide what it is
you'd like to do as your business.
I'm a firm believer in following your passion, whether that
be for gardening (start a herb and spice business or
cultivate cuttings for distribution via mail order), lead-
lighting (design and create stained glass lampshades),
accounting (run a home-based small business accountancy
service) or website design. It doesn't matter whether
other people are equally as passionate about what
you're passionate about. It's YOUR passion that counts
and it's YOUR passion that will propel you towards
success. Do something you love to do in other words.
Make your work your joy and you won't be able to help
but succeed.
=> IDENTIFY A NICHE MARKET FOR YOUR PASSION
Now, it's one thing to know what you're passionate
about, it's quite another to identify an unmet need in
that field. But that's what you must do if you want to
turn your passion into a truly profitable business venture.
Identifying your niche is a pretty straightforward
process:
1. Identify your general category and sub-category
Let's say your general passion is gardening. Gardening is
your general category. Let's also say that you're
particularly interested in growing herbs and how they
can be used for cooking and medicinal purposes. Herb
growing is your sub-category.
2. Hang out with people interested in your sub-category
In order to identify unmet needs in your sub-category
(step 3.), you must find out from people interested in
your sub-category what they're looking for that they
can't find. A good way to find out is to hang out where
they hang out - offline and on. Offline, you may belong
to a local gardening club or cooking class at which you
hear that so-and-so has been looking high and low for
a certain type of specialty herb that isn't commonly
grown in your country. Online, you may sign up for
mailing lists and hang out in newsgroups to listen to
what people are asking time and again.
3. Identify unmet or under-met needs in your sub-category
If you follow step 2, chances are, if you hear the same
things repeatedly, you've found potential unmet needs
or needs that aren't being adequately serviced by your
competition. After all, if the need is being met, it won't be
the subject of repeated questions.
4. Inventory your experience, interests and competencies
In order to decide what to focus on in particular out of
a group of potential unmet or under-met needs, take account
of your experience, interests and competencies. People are
generally good at what they enjoy and are interested in,
after all.
5. Fill the unmet or under-met need
Once you've identified the unmet need(s) in your
sub-category, you can start thinking about how your
business can fill that unmet need.
=> SURVEY THE MARKET AND YOUR COMPETITION
At this stage, you need to take your business idea
and survey your niche market and your competition.
If you have competition, can you be better? If your
market is dominated by a few large, well-established
players and you really don't bring anything new or
different to the table, then the competition is probably
going to be too stiff. On the other hand, if that
competition is focused on the high end of the market
leaving the lower end largely uncatered for, then this
could well be an excellent niche for you.
The bottom line is to identify your best competition in
your niche and decide whether you can be better.
Only if you believe you can be the best in your
niche should you proceed. If not, keep looking until
you find a niche perfectly suited to your particular
blend of experience, interests and competencies in
which you can be the absolute best.
=> BUSINESS PLAN
Once you've identified your niche and surveyed your
market and competition and are reasonably confident
you can be at least as good as your best competitor,
it's time to get down to brass tacks.
This is where you take your business idea and shape
it into a battle plan. Formulating a business plan is
goal-setting for your business.
Once you've thought through and recorded your
business plan you should have an extremely
thorough understanding of your industry and the
challenges you must overcome to make a success
of your business. Take your business plan and
establish objectives, goals (which support attainment
of the objectives) and tasks (which support attainment
of the goals).
Put your tasks and goals into action to achieve
your objectives. Decide where you want your business
to be in five years time and work backwards until
you have 5, 4, 3, 2 and 1 year objectives and goals
to support them and tasks to support the goals. The
end result should be a daily to-do list of things that
will directly lead you closer to the achievement of
your goals and objectives.
=> ACTION
Once you have your daily to-do list, DO IT! The best laid
plans of mice and men are useless if not translated into
action. It's action that will propel you and your business
towards success. Mere thoughts and plans are necessary
but insufficient. They must be translated into activity.
=> TRANSITION
If possible, transition from whatever you're doing now
into your business. Test the waters, in other words.
If you're currently in a paid job, stay there and run
your business part-time, taking the risk on someone
else's nickel until you can be confident this thing's
going to float. Know when you're better off devoting
your full time and attention to your business (i.e.,
know when an hour of your time is worth more when
spent invested in your business than your job) for
that is the time to shift into full-time entrepreneurship.
=> MAKING THE LEAP
Finally, make the leap with faith and courage. Sure,
you'll have moments of self-doubt, thoughts of
"can I do this?" when you're wondering where the next
order's going to come from and you think back to the
nice, safe, secure paycheck you used to be able to
count on in your job. But recognize these insecurities
for what they are. They are your mind playing tricks
on you. You can do anything you set your mind to.
You just have to want it badly enough. So, when the
time comes to make the leap, do it and hold nothing
back. Your success or failure is up to you alone.
There are no excuses.
So, in answer to the question "how do I start my own
home business?", it's quite simple really. You do what it
takes.
Saturday, June 23, 2007
Do you have what it takes to be an entrepreneur?
Fully one in ten adults in the United States today is an entrepreneur.
This phenomenon is by no means restricted to North America. The
leading country for entrepreneurship is Brazil with one in eight adults
an entrepreneur. Australia is not far behind the U.S. with one in twelve.
These countries - Brazil, the United States and Australia - lead the
way. Contrast, for example, Germany (one in 25), the United Kingdom
(one in 33), Finland and Sweden (one in 50) and Ireland and Japan
(less than one in 100). (Source: Global Entrepreneurship Monitor
2000.)
ENTREPRENEURSHIP DEFINED
The Global Entrepreneurship Monitor 1999 defined entrepreneurship
as "any attempt at new business or new venture creation, such
as self-employment, a new business organization, or the
expansion of an existing business, by an individual, a team
of individuals, or an established business."
ENTREPRENEURIAL ACTIVITY - AN HISTORICAL PERSPECTIVE
Entrepreneurship is a major contributing factor to the economic
well-being of a country both in terms of economic growth and
job creation. Traditionally, entrepreneurial ability tended to focus
on the following four attributes:
=> Initiative - the entrepreneur takes the initiative to bring together
the economic resources of land, labor and capital to produce a
commodity (whether a good or a service) with the hope that
such production will create a profitable business venture.
=> Decision-making - the entrepreneur makes the basic business
policy decisions for the business, thereby setting the course of
the enterprise.
=> Innovation - the entrepreneur is an innovator, attempting to
introduce new products and new ways of doing things.
=> Risk-taker - the entrepreneur risks his or her time, effort,
business reputation and invested funds in the entrepreneurial
venture.
THE MODERN ENTREPRENEUR
Until recently, the above attributes, especially innovation and
risk-taking, were the dominant factors that defined the
characteristics of those who chose to become entrepreneurs.
Now, however, with corporate downsizing being a fact of life,
many entrepreneurs find themselves thrust into the role by
default.
The question for anyone either finding themselves in this position
involuntarily or thinking about leaving corporate life for the heady
world of entrepreneurship is whether you have what it takes to be
successful ... the "right stuff" in other words. Some people do, in
spades. Others simply don't. If you're one of the ones who just
doesn't, either resign yourself to working for someone else or
cultivate in yourself the qualities that successful entrepreneurs
share. Believe it or not, entrepreneurs are not just "born". Well,
some, of course, seem to be natural-born entrepreneurs, but
for the rest of us, the qualities of entrepreneurship can definitely
be acquired by hard work and application.
COMMON ISSUES
The "common denominator" issues facing all entrepreneurs
are planning, finance and implementation.
=> Planning
All entrepreneurs face the challenge of starting a new business,
be it through innovation (inventing something new or doing
something a different way), finding the right opportunity to
get into, or buying a franchise. Whichever road you choose,
it will involve serious planning.
=> Financing
Unless you have ready funds at your disposal, getting finance
is the next major challenge and cannot be attempted until
your business plan is in place. You will need to prepare
funding proposals and applications for loans, venture capital,
and funds from angel investors.
=> Implementation
This is make or break time. Many people think just getting
started is the hard part - and it is hard. But where many
businesses stumble is not in the planning and financing
stages but in implementing their business plan. Why this is
so is not certain. There are various hypotheses including the
idea that ideas people and implementation people are two
very different breeds and it is highly unusual to find one person
who can do both. More likely though, is the simple fact that
implementation requires such a broad range of skills that
no one person can possibly be adept at all of them.
The real challenge and skill of the entrepreneur, then, is to
recognize what you do well and then appoint employees
or subcontractors to do the rest. Of course, if you're running
a business on a shoestring, this simply may not be possible!
So be brutally honest and objective in assessing your particular
strengths and weaknesses BEFORE you cash in your day
job and your 401K.
The areas to think about in terms of implementation are
the same as those encompassed by a broad definition of
management: promotion (marketing and advertising), public
relations, sales, employees, communications, legal issues,
plant and equipment, risk management, disaster planning,
crisis management, insurance, technology, computer systems,
taxes, bookkeeping, finance, and the internet.
PERSONAL QUALITIES
Equally important as the common issues shared by all
entrepreneurs are the personal qualities of the entrepreneur
him or herself. To start you thinking about whether you have
the right stuff to make a success of an entrepreneurial
venture, here's a list of character traits and work ethics
common to successful entrepreneurs. Although it is not
necessary that you possess all of them, you should possess
most:
=> Passion - entrepreneurs have a strong passion for their
idea or concept, so much so that their work is their play. If
you don't like what you do, you won't stick it out when
challenges come along, as they inevitably will.
=> Curiosity - entrepreneurs need to understand how things
work. They ask a lot of questions. Curiosity therefore triggers
innovation.
=> Sponges - entrepreneurs are sponges. They devour
information about their industry and are always current on
new and emerging trends and technologies, not only in
their specific industry but in closely related industries. This
habit of scanning their environment is a rich source of
discovery of new opportunities. Entrepreneurs are ALWAYS
looking for new markets, applications, products or twists on
an old concept.
=> Optimism - entrepreneurs think of problems as opportunities
for improvements and new ideas.
=> Forward looking - entrepreneurs are never satisfied with
the status quo and are always proactively carving out their future.
=> Careful about money - entrepreneurs are careful with money
and have a firm grasp on what things cost and their value to the
business. This allows them to recognize a true bargain when they
see one.
=> Started earning at a young age - entrepreneurs commonly
displayed entrepreneurial leanings as a teenager seeking out
entrepreneurial activities such as babysitting, lawnmowing and
lemonade stands.
=> Competitive - entrepreneurs are naturally competitive and
don't let the grass grow under their feet.
=> Time conscious - entrepreneurs know the value of time and
how to make the best use of it. You won't find entrepreneurs
spending much time on nonproductive activities. That said,
entrepreneurs typically also recognize the value of downtime and
time with family and will factor these activities into their schedule.
=> Risk takers - entrepreneurs are not afraid of taking calculated
risks. They typically trust their hunches and act on them.
=> Usually loners - entrepreneurs generally prefer a solitary work
environment as opposed to teamwork.
=> Professional - entrepreneurs are professional in their approach
to work. They operate as they would in a corporate environment
and don't allow themselves to be distracted by outside influences.
=> High energy - entrepreneurs have a plan and a vision and
they work it. Entrepreneurs are often health-conscious too,
recognizing that the fitter they are, the better their minds work. So
entrepreneurs will take time from their schedule to work out and eat
well.
=> Flexible - entrepreneurs are nothing if not responsive to change.
Although they appreciate the importance of having a plan and working
that plan, they allow themselves room to react and respond to
opportunities that may suddenly reveal themselves.
=> Nurture entrepreneurial spirit - entrepreneurs seek out and nurture
the entrepreneurial spirit in their employees and reward them
accordingly.
=> Confident goal-setters - entrepreneurs are confident and set long-term
goals, both for themselves personally and their businesses. They
view money and financial security as a measure of accomplishment
and a source of peace of mind.
=> Persistent - entrepreneurs never give up. They persist until they
succeed.
=> Learn from failure - entrepreneurs learn from their failures and those
of others. Failure to an entrepreneur is nothing more than an opportunity
waiting to be discovered.
=> Self responsibility - entrepreneurs take the initiative and personal
responsibility for their success or failure (which is always a merely
temporary state).
=> Resource utilization - entrepreneurs utilize ALL of their available
resources.
=> Internal locus of control - entrepreneurs don't believe in luck. They
firmly believe that success and failure lies within their personal
control or influence.
THE FUTURE OF ENTREPRENEURSHIP
As we all know, increasing numbers of people are electing to work
from home either through telecommuting or running home businesses.
While this trend has commonly been attributed to the growth in the
number of working women wanting to be home for their children, over
half of all people now working from home are men.
A recent Purdue University study concluded a number of factors seem
to favor continued high rates of new firm formation:
1. Continuing high rates of change (change creates opportunities for
new firms).
2. Continued growth of the service sector (the highest growth area for
new firm formation).
3. Increasing number of virtual corporations in which firms outsource
their functions, creating opportunities for entrepreneurs.
4. Positive climate for small business - a general perception that small
business is a positive influence on the economic wellbeing of the
country giving entrepreneurs legitimacy and respect.
5. Growth in international business opportunities.
With the traditional corporate-employment track seemingly on the
decline, the trend of forming strategic alliances with other businesses
that are closely aligned with yours or with someone who can add value
to your product is emerging. In fact, futurists envision a return to
extended community living with shared resources but individual living
and working relationships with entrepreneurial activities being the basis
of these communities. Strategic alliances are a first step along this
path.
So, if you have determined entrepreneurship is for you, you can be
confident that you are part of the wave of the future. But understand
what it will demand of you and whether you are prepared to give what
it will take. The allure of entrepreneurship is undeniably strong for many
but make sure you're going into it for the right reasons. Being miserable
in your job does not automatically make starting your own business the
best idea in the world. In fact, it could be the worst reason of all to get
into business for yourself. The right choice may instead be to find another
job that you won't be miserable in. But if, taking into account everything
that's been said above, you're adamant that you have what it takes,
by all means take the bull by the horns and create something
absolutely fabulous.
This phenomenon is by no means restricted to North America. The
leading country for entrepreneurship is Brazil with one in eight adults
an entrepreneur. Australia is not far behind the U.S. with one in twelve.
These countries - Brazil, the United States and Australia - lead the
way. Contrast, for example, Germany (one in 25), the United Kingdom
(one in 33), Finland and Sweden (one in 50) and Ireland and Japan
(less than one in 100). (Source: Global Entrepreneurship Monitor
2000.)
ENTREPRENEURSHIP DEFINED
The Global Entrepreneurship Monitor 1999 defined entrepreneurship
as "any attempt at new business or new venture creation, such
as self-employment, a new business organization, or the
expansion of an existing business, by an individual, a team
of individuals, or an established business."
ENTREPRENEURIAL ACTIVITY - AN HISTORICAL PERSPECTIVE
Entrepreneurship is a major contributing factor to the economic
well-being of a country both in terms of economic growth and
job creation. Traditionally, entrepreneurial ability tended to focus
on the following four attributes:
=> Initiative - the entrepreneur takes the initiative to bring together
the economic resources of land, labor and capital to produce a
commodity (whether a good or a service) with the hope that
such production will create a profitable business venture.
=> Decision-making - the entrepreneur makes the basic business
policy decisions for the business, thereby setting the course of
the enterprise.
=> Innovation - the entrepreneur is an innovator, attempting to
introduce new products and new ways of doing things.
=> Risk-taker - the entrepreneur risks his or her time, effort,
business reputation and invested funds in the entrepreneurial
venture.
THE MODERN ENTREPRENEUR
Until recently, the above attributes, especially innovation and
risk-taking, were the dominant factors that defined the
characteristics of those who chose to become entrepreneurs.
Now, however, with corporate downsizing being a fact of life,
many entrepreneurs find themselves thrust into the role by
default.
The question for anyone either finding themselves in this position
involuntarily or thinking about leaving corporate life for the heady
world of entrepreneurship is whether you have what it takes to be
successful ... the "right stuff" in other words. Some people do, in
spades. Others simply don't. If you're one of the ones who just
doesn't, either resign yourself to working for someone else or
cultivate in yourself the qualities that successful entrepreneurs
share. Believe it or not, entrepreneurs are not just "born". Well,
some, of course, seem to be natural-born entrepreneurs, but
for the rest of us, the qualities of entrepreneurship can definitely
be acquired by hard work and application.
COMMON ISSUES
The "common denominator" issues facing all entrepreneurs
are planning, finance and implementation.
=> Planning
All entrepreneurs face the challenge of starting a new business,
be it through innovation (inventing something new or doing
something a different way), finding the right opportunity to
get into, or buying a franchise. Whichever road you choose,
it will involve serious planning.
=> Financing
Unless you have ready funds at your disposal, getting finance
is the next major challenge and cannot be attempted until
your business plan is in place. You will need to prepare
funding proposals and applications for loans, venture capital,
and funds from angel investors.
=> Implementation
This is make or break time. Many people think just getting
started is the hard part - and it is hard. But where many
businesses stumble is not in the planning and financing
stages but in implementing their business plan. Why this is
so is not certain. There are various hypotheses including the
idea that ideas people and implementation people are two
very different breeds and it is highly unusual to find one person
who can do both. More likely though, is the simple fact that
implementation requires such a broad range of skills that
no one person can possibly be adept at all of them.
The real challenge and skill of the entrepreneur, then, is to
recognize what you do well and then appoint employees
or subcontractors to do the rest. Of course, if you're running
a business on a shoestring, this simply may not be possible!
So be brutally honest and objective in assessing your particular
strengths and weaknesses BEFORE you cash in your day
job and your 401K.
The areas to think about in terms of implementation are
the same as those encompassed by a broad definition of
management: promotion (marketing and advertising), public
relations, sales, employees, communications, legal issues,
plant and equipment, risk management, disaster planning,
crisis management, insurance, technology, computer systems,
taxes, bookkeeping, finance, and the internet.
PERSONAL QUALITIES
Equally important as the common issues shared by all
entrepreneurs are the personal qualities of the entrepreneur
him or herself. To start you thinking about whether you have
the right stuff to make a success of an entrepreneurial
venture, here's a list of character traits and work ethics
common to successful entrepreneurs. Although it is not
necessary that you possess all of them, you should possess
most:
=> Passion - entrepreneurs have a strong passion for their
idea or concept, so much so that their work is their play. If
you don't like what you do, you won't stick it out when
challenges come along, as they inevitably will.
=> Curiosity - entrepreneurs need to understand how things
work. They ask a lot of questions. Curiosity therefore triggers
innovation.
=> Sponges - entrepreneurs are sponges. They devour
information about their industry and are always current on
new and emerging trends and technologies, not only in
their specific industry but in closely related industries. This
habit of scanning their environment is a rich source of
discovery of new opportunities. Entrepreneurs are ALWAYS
looking for new markets, applications, products or twists on
an old concept.
=> Optimism - entrepreneurs think of problems as opportunities
for improvements and new ideas.
=> Forward looking - entrepreneurs are never satisfied with
the status quo and are always proactively carving out their future.
=> Careful about money - entrepreneurs are careful with money
and have a firm grasp on what things cost and their value to the
business. This allows them to recognize a true bargain when they
see one.
=> Started earning at a young age - entrepreneurs commonly
displayed entrepreneurial leanings as a teenager seeking out
entrepreneurial activities such as babysitting, lawnmowing and
lemonade stands.
=> Competitive - entrepreneurs are naturally competitive and
don't let the grass grow under their feet.
=> Time conscious - entrepreneurs know the value of time and
how to make the best use of it. You won't find entrepreneurs
spending much time on nonproductive activities. That said,
entrepreneurs typically also recognize the value of downtime and
time with family and will factor these activities into their schedule.
=> Risk takers - entrepreneurs are not afraid of taking calculated
risks. They typically trust their hunches and act on them.
=> Usually loners - entrepreneurs generally prefer a solitary work
environment as opposed to teamwork.
=> Professional - entrepreneurs are professional in their approach
to work. They operate as they would in a corporate environment
and don't allow themselves to be distracted by outside influences.
=> High energy - entrepreneurs have a plan and a vision and
they work it. Entrepreneurs are often health-conscious too,
recognizing that the fitter they are, the better their minds work. So
entrepreneurs will take time from their schedule to work out and eat
well.
=> Flexible - entrepreneurs are nothing if not responsive to change.
Although they appreciate the importance of having a plan and working
that plan, they allow themselves room to react and respond to
opportunities that may suddenly reveal themselves.
=> Nurture entrepreneurial spirit - entrepreneurs seek out and nurture
the entrepreneurial spirit in their employees and reward them
accordingly.
=> Confident goal-setters - entrepreneurs are confident and set long-term
goals, both for themselves personally and their businesses. They
view money and financial security as a measure of accomplishment
and a source of peace of mind.
=> Persistent - entrepreneurs never give up. They persist until they
succeed.
=> Learn from failure - entrepreneurs learn from their failures and those
of others. Failure to an entrepreneur is nothing more than an opportunity
waiting to be discovered.
=> Self responsibility - entrepreneurs take the initiative and personal
responsibility for their success or failure (which is always a merely
temporary state).
=> Resource utilization - entrepreneurs utilize ALL of their available
resources.
=> Internal locus of control - entrepreneurs don't believe in luck. They
firmly believe that success and failure lies within their personal
control or influence.
THE FUTURE OF ENTREPRENEURSHIP
As we all know, increasing numbers of people are electing to work
from home either through telecommuting or running home businesses.
While this trend has commonly been attributed to the growth in the
number of working women wanting to be home for their children, over
half of all people now working from home are men.
A recent Purdue University study concluded a number of factors seem
to favor continued high rates of new firm formation:
1. Continuing high rates of change (change creates opportunities for
new firms).
2. Continued growth of the service sector (the highest growth area for
new firm formation).
3. Increasing number of virtual corporations in which firms outsource
their functions, creating opportunities for entrepreneurs.
4. Positive climate for small business - a general perception that small
business is a positive influence on the economic wellbeing of the
country giving entrepreneurs legitimacy and respect.
5. Growth in international business opportunities.
With the traditional corporate-employment track seemingly on the
decline, the trend of forming strategic alliances with other businesses
that are closely aligned with yours or with someone who can add value
to your product is emerging. In fact, futurists envision a return to
extended community living with shared resources but individual living
and working relationships with entrepreneurial activities being the basis
of these communities. Strategic alliances are a first step along this
path.
So, if you have determined entrepreneurship is for you, you can be
confident that you are part of the wave of the future. But understand
what it will demand of you and whether you are prepared to give what
it will take. The allure of entrepreneurship is undeniably strong for many
but make sure you're going into it for the right reasons. Being miserable
in your job does not automatically make starting your own business the
best idea in the world. In fact, it could be the worst reason of all to get
into business for yourself. The right choice may instead be to find another
job that you won't be miserable in. But if, taking into account everything
that's been said above, you're adamant that you have what it takes,
by all means take the bull by the horns and create something
absolutely fabulous.
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