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Okay, Now you have been considering to enter into a home business.
And you have been dreaming about it. You have been dreaming of owning a home
business with lot for personal freedom. But the question here to answer is:
What's your home business idea?
So What’s Your Idea?
You’ve got this far. It’s time to ask yourself: what exactly do you plan to do? What’s your big home business idea – and, more importantly, how is it going to make you any money? There are quite a few ways to figure out whether your idea is a good one or a bad one. Basically, it all comes down to the practicalities of the thing.
Do You Have the Time?
There are only so many hours in a day, and you want to save some of them for yourself. If you’re planning on, for example, making small products and selling them, will you really have enough time to take orders, make them, pack them up and post them? If you’re not careful, you can find yourself doing tedious work all day and all night for $2 per hour.
So evaluate the revenue potential of your home business and connect it with the time at your disposal. No point in spending too much time on products that takes lot of time and gives you a very low margin.
Remember that time is money: the only way to make the income you want is set an hourly rate you’re happy with, and then work out pricing as your rate plus expenses. If you don’t have enough time to do the work, then increase the rate or hire someone who does. It’s simple supply and demand.
If you are interested, here is a nice resource:
Ideas Gold Mine.
Do You Have the Qualifications?
One of the traps that people most often fall into is wanting to take a skill they have and turn it into a business, without realizing that their customers will expect them to have formal qualifications. Sure, you were a full-time mother for years, but people would still like you to have a child-care qualification. This goes double if you plan to become some kind of therapist – if you don’t have the qualifications, how are people supposed to know that you’re not just making it up as you go along?
What’s more, qualifications serve to create scarcity in the market. A business will do better if only qualified people can provide its services than if any joker can. That’s why people like doctors and dentists command such high wages: they have to study for years to get their skills, which creates scarcity in the marketplace.
So is the case with with lawyers. Can you start home business similar to that of a legal consultancy firm? So if you are planning to get into professional fields and start a home business with it, you need to take courses and pass the required tests.
If you already have the skills, you should find it easy to pass the tests – and who knows, you might learn something new. Enroll on an evening course at your local college (try to avoid ‘distance learning’, as the prices are usually stupidly high compared to what you get out of it). It can be good fun, and you’ll probably end up with some good contacts in your chosen industry. Many people have started better home businesses by creating a ‘network’ of others they know doing the same business in the local area. This lets everyone specialized in their best area.
Do You Have the Space?
Will your home business suffer from space constraints? For. e.g. if you are planning to get into consumer goods, you need a godown to stock your items and these types of good demands lot of space.
These kinds of questions are normally not answered before you get into a home business. Only when storage space becomes a problem, one tend to realize the need of vast amount of space.
So before getting romantic and get carried away with your home business idea, think of this very important aspect. If you are into physical products, providing a space becomes inevitable!.
Also, if you’re planning to have deliveries to your house and then send items
out to people, you need to think it through very carefully. Do you really have
enough space to act as a warehouse? Will you be cutting the size of your home in
half for the sake of your business? It’s also worth considering whether you can
really let big delivery lorries drive up into your road without doing some
damage – there’s nothing worse than getting your first delivery and finding that
the lorry didn’t fit in your street and the boxes don’t fit in your house.
And it leads to other complications. Your home business can interfere with your otherwise placid family life and you will have to deal with the discomforts faced by your spouse and children as you are invading into their space!
The best way to solve this problem is to make sure that your home business doesn’t require any inventory. Home businesses where you provide a service – whether it’s over the phone, on the Internet or in person – almost always work out better than ones that involve you packing and posting things.
Of course, even for more service-oriented businesses, space can still be a problem: if you plan to be a fitness trainer from home, make sure you have somewhere to put all that fitness equipment!
Money, Money, Money.
Consider the kind of expense you’d need to go to when you start your business, as well as the day-to-day running costs. Then, and this is the vital part, work out the maximum number of customers you think you could deal with, and cut it in half (you won’t actually get that many customers, at least to begin with). Work out how much you’d have to charge each of those customers to break even for your first year. If the price comes out far too high, then it’s time to think again.
So before you get romantic with your home business idea, be practical and have solutions to the space problem first.
Many more home business articles are buried inside this site. Dig it out and
make use of them!
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