Home  Based Business

Home based business options, criteria, qualities
Are you looking at home based businesses for the first time?

-Types of home business?

-Criteria for evaluating a business?

-Qualities required? Types of people and motivations for starting a home business?

What types of home based businesses available?

"Friends and family business"

Business limited to people that you know, so provides limited opportunity. A business done at the school gates.

"Catalogues on doorsteps businesses"

Typically more time spent out of the home than at home!  How many months or years do you want to spend doing this?

"Home party business"

Principal method of promotion is demonstrating products in peoples homes.

"Home shopping businesses"

Becoming outdated as many households now have access to the internet and can buy the same products via the internet with infinite choice.

"Menial work"

Min wage work from home with no prospects e.g. envelope stuffing

"Secretarial/admin work"

A job at home that pays by the hour and income is limited to the number of hours you work.

"Internet only businesses"

Selling information and products via the internet only.  Use same criteria to evaluate as a non-internet business. Long term prospects? Niche market or "home shopping" site?

"Traditional small business"

Typically the person who starts a "small business"  wears 10 different hats, creates everything from scratch, and then finds it difficult to grow the business beyond their own time. Managing staff =expensive and huge hassle. They often stay as  one man or one woman businesses working 18 hours a day!

"Franchise Business"

Costs thousands to get access to the support and typically most franchises resent paying ongoing royalty once they have established the business.

"MLM Business"

Check the strength of the retail part of the business. That it generates a good income independent of the sponsoring part.

"Niche Focussed Business"

Company with a unique range of products and uses various methods of promotion to find their customers. Check their support systems. Web sites and and and...Thats us!

How to review a home based business?

Make a list of criteria for evaluating a business. Here are some ideas to get you started?

1.  Is it a growth market? Are the products/services in demand now? Will they be in demand in 5 years? A fad product? A market in decline?

2.  Best products? Are they the best offering in the market? Would you buy them, in preference to the competition? What competition?

3. Are they marketing their own products/services? Or supplying other companies products via  a "home shopping business".

4.  What support available? What marketing support available to make contact with people you don't know? What accountancy support available so that you claim the maximum tax benefits?

5.  What support available online? Internet sites? Internet marketing training available?

6.  How do they find their customers? And how many different ways? Catalogues on doorsteps, home parties, internet marketing, affiliate marketing, flyers, shows, events, product demonstrations, press advertising, friends & family, listings on national directories, SMS, wheel leads. Is it a business done via incoming calls or outgoing calls i.e. cold calling?

7. Cost of starting? Is it £100 or £5,000 ? What does it cover ? Products? Web sites? Marketing support?

8. Training available? Types available? Training days? Online training?

9. Personal development training available? For your business to succeed you will need to acquire new skills.

10. Can you grow the business beyond your own time? What growth model available? Or will your business be limited by your own time? Residual income opportunities?

11.  How long has the company been established? If a brand new company does it have a parent company? Internet businesses and MLM businesses come and go..

12. In how many countries does the company have operations? The internet is creating a global market for  products and services. In how many countries do they have distribution centres, so you don't need to export?

13. Origin of company? If company's head office is in another country, what support systems are available locally? Do they have a subsidiary office? Are support materials relevant to your market.

14.  Profit margins? 10%/20% 0r 50% or higher? Profit made per order/transaction i.e. pennies or pounds?

15.  Consumables business? Where customer comes back to re-order every month, so you are not always dependent on new customers.

16. Commodity product? Is competition on price only? Or service and the features of the products part of the mix? e.g. telecoms is price driven

17. What type of people working in the business? Meet some before you get started!

18. How do they introduce you to the business? Expected to make a decision from reading a brochure or watching a CD or do they run open days or seminars? Review as you have done in the past a job opportunity.

19. Enjoyment ? Job satisfaction? Fun? Will you enjoy the work day to day? Do they run promotions and vacations?

20. Long term prospects? You may be doing this business in 10 years time!

Qualities?

A home based business involves more than products and marketing. We are humans and our attitude influences everything we do. This involves more than just keeping a “positive attitude.” We need to know who we are, what we value, and what is motivating us. We need to have inner resources for encouragement, hope, faith, and perseverance.

Drive? Determination? Hard working?

Desire has always been there to "be own boss" but  always thought was a choice between salaried employment and own business?

Frustration with status quo and/or realisation that however hard you work your current situation wont allow you to achieve your dreams/goals?