How to Start a Successful Home Business

by WorkFromHome on August 7, 2011

Starting a business can seem like a daunting undertaking, especially in a tumultuous economy. In reality, the most successful and happy individuals are often home business owners. They have the ultimate freedom in choosing how they model and market their business. They choose to work the hours and schedule of their choosing, and have the ultimate control over their financial success. The hardest part of any home business start-up is establishing a business model and finding the resources to get your business off the ground. Here are the important steps to take to begin seeing your dream of operating a home business turn into a profitable reality.

  1. Sit down in a quiet room and make a list of your hobbies and interests. The key ingredient to achieving home business success is to start a business based on something that you love or enjoy. You will never “work” a day in your life when you have a passion for your business. If you enjoy shopping and clothes, maybe opening a consignment shop or online auction business is right for you. If you have young children or love children, maybe a home-based daycare business is the right opportunity for you. If you have a passion for cooking, baking, or other creative talent or hobby, perhaps owning your own bakery or boutique would be ideal. Take your time and think it through. Once you have established a baseline business model, you can go from there and determine what you will need to get your business off the ground.
  2. Reach out to your community resources. Once you have a plan of action, it is best to schedule meetings with as many financial advisors as possible within your community. These invaluable sources of information can guide you on start-up related questions and expenses, tax and regulation liabilities, profit margins, and banking investment opportunities. Like-minded and successful businesses pertaining to your core business model can be great places to gain momentum, motivation, and knowledge on succeeding with a home business. Tax advisors, small business agencies, and financial institutions can help you to establish a portfolio, realistic time frame for business start-up, and guide you as to how much money you will need to start your business.
  3. Once you have established a baseline for your business, have secured zoning requirements, and know the costs associated with business start-up costs, you should apply for business loans, or if your credit is bad, look for “Angel lenders.” These wealthy individuals often run successful companies and lend money to start-up companies and home businesses that demonstrate the potential to succeed in their respective industries.

    If your start-up costs are nominal and you would prefer to use your savings or raise the money to start your business, online auctions are a great way to earn a ton of cash for unwanted household items. It’s a win-win situation because you get to clean, de-clutter, and organise your home, while earning money for your business. Collectibles, old books, authentic designer clothing and accessories, gold and silver jewelry, high-end costume jewelry, brand name children’s clothing, high-end makeup and skincare items, automobiles, and tools often sell very well on online auction sites. Most people are surprised to find that they can generate most, if not all, of their business start-up costs almost exclusively by cashing in on their unwanted items.

  4. If your business requires inventory, do your research to get the best price. Often, wholesale distribution companies, liquidation companies, or drop shippers are great places to find low-cost lots of items for a great price. Some of the items are customer returns, seasonal overstock, or damaged items, so it is important to check the credentials of the business, ask for references, and request manifest lists of available lots to determine if the lot is worth purchasing. A manifest lists the available items in the lot, their retail prices, sku numbers, and product names. Using your expertise and online resources, you can determine if the lot is profitable to your home business.
  5. If you are starting a service or delivery-based business, obtaining clients will be your biggest challenge. Enlist the help of friends and family. Perform services for them, give them batches of your goodies to take to co-workers, and start small to build your business. Advertise your services at local churches, grocery stores, retail shopping centers, and college campuses via fliers. Pass out business cards to everyone you meet. Approach local businesses and offer samples of your product. If customers respond positively, boutiques will reach out to you to produce more to sell in their stores, in exchange for a small commission.

Enjoy the process of building your business and utilise your resources. When you take the time to grow your home business, it will provide you with financial success.

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