You’ve decided to take the big step and you’re starting a home based business. It’s something you gave a lot of thought to and that you really want to see succeed. The good news is you have started on a path that can give you the financial freedom to choose how you live and how you work. The bad news is most people who start a home based business fail.
This article will give you a quick rundown on how to avoid the common mistakes and how you can turn this business into the dream you want. Okay enough hype, the facts are pretty straight forward it just seems like the dream sometimes overpowers our ability to see them for what they are.
The Number One Reason Home Based Businesses Fail
Actually this depends on the type of home based business that you have. If you’re trying to sell physical products and you have to carry an inventory then the number one reason for failure is insufficient capital. In short you don’t have enough money to effectively run the business. If you are into internet marketing, the number one reason for failure is the business owner simply quits too soon.
In both cases, the underlying reason for failure is that realistic market research and revenue projection were not performed. It’s absolutely amazing how many times the imaginary analysis of “if I get 100 people to see my product and only 2% buy that will give me $XX in sales”. Did you go through this? Did you make a revenue estimate based on numbers you pulled off the top of your head or did you do research?
For the physical product operation, faulty marketing research will kill the cash flow and put it out of business. For the internet business, the fact that few if any sales were made will discourage the owner and he or she will quit before their efforts have had time to mature.
The Number One Reason Home Based Businesses Succeed
The number one reason for success is a well thought out business plan. That means this home based operation is being treated as a business and not a hobby. It is not considered something that you can start and stop as you please but rather a business that has a purpose and a plan of action.
The market niche is identified, the product to promote is selected, a unique selling proposition is created and an intelligent marketing plan is put in place. Budgets for advertising and overheads are established. Sales and expenses are tracked.
Most importantly, the owner takes action on the business plan each day. Every day that passes the business makes progress. The owner has reasonable expectations and has the patience to let his efforts take effect. This business succeeds because the owner works it as a business and doesn’t allow distractions to interfere.
Starting a home based business is not difficult and if you put the effort into the planning you have an excellent chance of succeeding. Know your market, know your product, market smart and give good customer service and you’ll wind up with a winner.
Judith Shuttleworth runs a successful on-line, global, marketing business. She has coached and mentored others to achieve the same success. If you're thinking about a home based business and want to save yourself time and money, then wouldn't it make sense to have a friend in the business? Find out how you can jump start your business by visiting www.judith-shuttlworth.com