Many folks think that building their own home-based business is the opportunity of a lifetime. We fall in love with the idea of being our own boss, setting our own schedule, even the idea of no longer having to wear a corporate uniform every day is a huge draw for some would-be entrepreneurs.
Every day, I see ads on the internet and twitter, “How to make $1000 a day from home.” or “I made $671 today on Twitter, let me show you how.” There are a lot of opportunities out there but none of them will make you a fortune overnight. In fact, if someone tells you that, they are lying to you and just trying to get your enrollment fee in their program.
When I was a kid my father told me, “There are no free lunches. You get what you pay for.” In terms of business, his advice is still true. There are NO legit get-rich-quick schemes. Do not be fooled. Home-based businesses are enterprises based on direct transactions, not just entities where checks start magically appearing in the mail.
Most of the self-made millionaires I know, said it took 5 to 10 years for them to become an overnight success. There are all kinds of multilevel marketing programs (MLM) out there, but beware of the business model that has more emphasis on signing other people up to sell, as opposed to selling the actual product.
Real effort and thought is required to build a successful business, and much of it is required before you ever open the business.
Develop a Lifeplan Have you really thought about what your life is going to be like as an entrepreneur. Will you work 7 days per week, 12-hour days? Do you have the energy to work like that? Working all alone in a back bedroom or in your basement behind a lonely PC could be a big adjustment. Isolation is the enemy of entrepreneurship. Working at home can also present a lot of distractions such TV watching, noisy neighbors, personal calls phone, napping, chores etc. How will you combat your environment?
Build Your Network People do business with people they like and know. Are you now more internally at your company than externally? Do you have a complete Linkedin profile? How many times per month do you attend or plan on attending networking functions? Everywhere you go, you need to talk up your new business. Try the hair salon, trade association, supermarket, your child’s daycare – even at your current job. Build the contacts you will need to build your business. Always be ready to promote your business.
Know Your Industry Have you done extensive business research on the market and industry trends? Even if you are going to sell May Kay, you need to know how many other Mary Kay ladies are in your area or operate in your church. Is the market saturated? Is there already a lady with a pink Cadillac in your neighborhood who’s cornered the market?
Develop a Marketing Strategy How will you do the bulk of your advertising and marketing? Will you strictly use the internet? Will you blog and use article marketing to attract clients? Will you outsource your social media? Will you need a social media coach or virtual assistant to help manage your internet footprint? Whatever your strategy, you will have limited time and resources to make a big splash, so be willing to do what your competitors are not willing to do to get noticed in the marketplace..
Develop Strategic Alliances Approaching a complementary business is a great strategy. You can help each other grow in business, trade tips and resources. If you are a massage therapist, partnering with a chiropractor could be a good move and a great referral business. See what kind of referral agreement you can work out. You never know what kind of deal people might be willing to make with your business. Now, not every business owner will be eager to partner with you, but networks are built one relationship at a time. You will never know until you ask. They might not be interested now, but maybe later…
Having a home-based business is like opening any other business except that your business happens to be headquartered in your home. If you plan well, do your market research, build your network before you start and while you are running your business, develop a comprehensive marketing strategy, and build strategic alliances your business will be far more likely to be successful.
For more tips on how to start or grow your small business subscribe to Melinda Emerson’s blog.www.succeedasyourownboss.com
This is great advice for all business owners – home based or otherwise – and points we should all look at whether we’re just starting out or already established. Every business owner can re-examine their life plan (or make one if they haven’t) and we can all continuously build our networks and develop alliances. And, even if we’ve done our market research starting out, industries are constantly changing so it’s important to stay on top of the latest movements and trends.
Thanks for such an excellent post!!
.-= Danielle´s last blog ..Eco-Friendly Businesses: Save with 10% Discount =-.
Danielle–
Thank you so much for your thoughtful comments about this blog post. It is my strong belief that would-be entrepreneurs need to develop a lifeplan before they every write a business plan. Entrepreneurs who don’t run the risk of starting a business that might not be a good business for them.
Best–
Melinda Emerson
@smallbizlady
Hi Melinda,
My favorite part of this post: “Isolation is the enemy of entrepreneurship.” That’s right on! I think it’s also one of the more overlooked aspects of being an entrepreneur — and certainly the least glamorous. Finding ways to connect when you work alone are so essential for success… maybe as important as a business plan!
Thanks for your thoughts,
Leah
.-= Leah Howse´s last blog ..How to Run a Business with Your Significant Other (and Not Ruin Everything) =-.
Leah–
Isolation is the reason why things do not get done in a small business. When you are constantly alone you can get easily distracted or worse you can get discouraged. I never liked working at home for this very reason. I hope this blog post helps people think about their business environment long term.
Thank you for your thoughtful comment.
Melinda
@smallbizlady
You have made great points here, Melinda. Another I’d add is that, especially once a sole proprietor gets going, time often runs short, with an arms-length “must do” list remaining at the end of the workday. Wise managers/entrpreneurs must be able to set their egos aside and determine what his/her skill set is and isn’t. Learn to delegate tasks that aren’t your bailywick in order to best leverage your time and energy.
Lending a hand with crisp, reader-savvy copy is my offering to leverage others’ efforts, whatever their niche! And as for me? I ask for help in all sorts of ways!
I hope you’ll follow me @standoutcopy! Thanks for sharing this advice.
Ellen–
Thank you so much for adding the point about that never ending to do list. I do not believe in cramping that list. At the end of each day, you should set a list of the next day’s priorities. The list should not have more then 3-5 items on the list. As a business owner we know that things can change quickly and then you look up and a day has gotten past you. Be sure to celebrate the things you do get accomplished and try not to spend time doing $10 an hour work when your time is billable at $100+.
I will follow you at @standoutcopy.
Best–
Melinda
@smallbizlady
Melinda,
Good advice. I am thinking of getting into “Arbonne.” The part about isolation is key as well as knowing who else in my hood is selling the same products. I want to bring in another source of income because of the economy, but is this the right one? The products are good but pricey.
Keep up the good work.
Pat—
The most valuable thing you need to consider before starting a personal retail business is how strong of a network you have to sell your products too. The stronger your network the better your business opportunity.
I am always here as a resource.
Good Luck–
Melinda
@smallbizlady
Thank you for your comment. I hope that you will come back and get more value from it.
My best to you,
Melinda
Tina Well done on an excellent post. I rellay like your point about business plans having a rhythm and logic’. Too often I meet entrepreneurs who think that they have to stick to a template and include sections just because they are in the template provided by a third party. Marketing is a critical section of any business plan. I agree that a bird’s eye view is what is required. A key objective of a business plan is to tell investors how much financing is required, why that financing is required and how it will be spent. In general business plans identify marketing and promotion as key activity requiring funding. The marketing approach outlined (as per your post) are critical to developing management credibility. Bridgewater Management have prepared a free pdf