Working from home is a great way to gain personal time freedom. It also presents lucrative tax savings, earning potential and if you build it right, passive income for life.
Here’s a question for you:
Are you really running a business or are your playing at a business and treating it more like a hobby.
To decide which is which, ask yourself a few questions:
1. Do I have a plan?
Yes I mean a real business plan, one that includes marketing, promotion, sales, competition, business goals, financial projections etc. It should be detailed and include financial projections as well as the expenditures that you will be making to build your business. Take some time when creating this plan, and review it often. You need to know where you are going if you have any hope of getting there so put it down in writing. It’s the best way to start making the plans you have real.
2. Do I have a schedule?
By this, I mean do you work at your business on a consistent schedule. Do you set aside time in your day to work the business. Are you implementing the plan you created above. Set times in your agenda when you will work the business. Remember that working the business doesn’t include reading emails. It could include prospecting, sales calls, advertising and other activities that reach your bottom line sales results.
3. Have I set budgets for my business and am I spending within those budgets effectively?
This is a really important factor. Many people start a business with visions of the money they are going to make and get quickly discouraged when they have to make investments to grow the business. If you decide what to spend, how much and where, you are working off a solid plan for growth. Include in the budget things like sampling, business cards, web hosting, leads, promotion, advertising etc. Make sure you include every possible expense that is appropriate in your business. If you know what your business will cost, and plan for it, you are less likely to give up when the going gets tough.
4. Speaking of the “going getting tough” – Do I have a contingency plan if my sales objectives aren’t being met?
Think about how to address it, what will I do, who will I call for advice etc.
Lets face it. Sometimes the best laid plans don’t turn out the way you expect. Don’t give up. Have contingency plans for the business. Have action plans to implement if growth is not happening the way you’d like. Call someone. You may be in business for yourself but you’re not in business alone. Brainstorm ideas and then get them moving. It’s easy to give up when the first obstacle hits. Don’t. Your future success is worth more than that and you owe it to yourself to keep going.
5. Am I investing in my education?
If you read books by business gurus like Trump, Kiyosaki, Bach and others, they are talk about the importance of learning. Learn something new every day. Invest in your education through seminars, courses and magazines or books. You are investing in yourself, your business success and your future when you take the time to continuous learn. It is the best money you can spend. (If you don’t have time to take course, there are numerous great online programs that give you short online courses that you can do on your computer in less than 1/2 hour. This is a great investment in your greatest asset . . . YOU. ).
I hate to say it but if you aren’t doing all of the above . . . and more you are not working at a business, you are playing. I hate to add that when you are playing at something, you won’t realize the success you are hoping to achieve. By taking a few small steps, you can convert that hobby into a real business . . . and guess what, you will start to see the dollars roll in, bringing you that much closer to your goals of financial freedom.
Take some time and answer each of these questions. Where there are gaps, start filling them in. This is another great step in your business development.
When you are starting a home business, it is tempting to play and enjoy your new-found freedom but you need to set the solid foundation for your business if you want it to succeed. Build the business on a solid footing and retiring free and early is possible.
Make your business real . . . not a hobby and you are on your way.
Posts Tagged ‘Plan 13’
10 Step-by-step Business Startup Guide: Step 3
December 25th, 2009STEP 3: Prepare a Business Plan
Once I have done all the preparations, I would start creating a detailed business plan – a document that will provide the priorities, strategies, agenda and sanity I’ll need to startup my business.
In my experience and observation of the business world, the “activity” of creating a business plan is as valuable as the end product itself. Just remember that the most important audience for a business plan is ME. I am accountable for all the statements, claims, statistics and facts. So if I try to “twist” the figure, I am actually lying to myself!
The business plan can also aid me as a tool to generate interest from financiers, venture capitalists, staffs, suppliers and strategic associates.
Regardless of the structure or format of my business plan, I will ensure that my business planning must contain answers for the following twelve questions:
1. What’s my business idea?
2. How does my idea address consumers’ needs/wants?
3. What business model suits me best?
4. What’s unique about my business idea over the rivals?
5. What is the market opportunity and potential?
6. What is my role and responsibility?
7. Who are the key staffs or workers (skip if I do not have any)?
8. What price will the customer pay and how will they buy?
9. How much money do I need to start and run the business?
10. What’s the source of my capital?
11. How will I measure the success of my business?
12. What are my key milestones?
While preparing my business plan, I would cover all the elements of a business plan shown in DAY 3. Just for your study aims, I have attached a sample business plan at the end of this section.
I must ensure that my business plan is concise and neatly formatted (i. e. Microsoft Word document for the bulk of the plan, with any financial documents as attached spreadsheets in Microsoft Excel), and need not include fancy graphics, flowery language or photos. The easier I make it to read, the better.
Alternatively, there are occasions I work better with business plan templates and wizards. Hence, I would search online as there are many business planning software packages available that only cost in the neighborhood of $100, as well as a few free online business plan templates. I would normally spend some time searching for the right software or templates to aid me in constructing my business plan.
*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website 
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Start Up a Service-based Internet Company
December 25th, 2009There have been many successful service-based Internet companies that have started up over the years. The appeal of a service based Internet company instead of having products to sell is probably the general low cost at start up. Unlike a company selling products, services require no pre-existing development.
This doesn’t mean it is any easier to start up a company. It also doesn’t mean just because you start your company that people will automatically flock to you. Like many companies, you need a plan, and know where to start.
Have a Plan
It is well known that a business should have a plan. What most people forget is that the plan isn’t for anyone else but you, the owner of the company. It is your plan from start to foreseeable future.
It starts by writing out what you want your company to be like. It is sort of like planning backwards. You write out what your company should look like, and then take a step backwards, what will it take to set this particular aspect in place? How do you get to this point? You work it all the way down to where you are. Then you have a path to follow to get all the way to where you want to be.
If you need examples of how to write a business plan, you can try the Small Business Association. The website is sba. gov and it has examples of business plans you can use as references. The SBA even has free courses to take to learn how to plan, start up and market your new business.
Money and More Money
Yes, it costs money to start a business. You are well aware of that. In addition, you might need to cover the cost of being in business for several months or even up to a year before you begin to see profit and the business starts paying for itself.
This is something you budget for in your plan. Your plan should have included an outlook as to when you will be in business. You should also put in your budget how you will continue to pay for your business in the months ahead.
Your return on investment (ROI) should be in detail. When you have a plan in place, you’ll know how much you are going to spend, when and how. You’ll also know how much you’ll need. Plan on having a little bit extra, in case of emergencies, so you are not scrambling around later for them.
The Marketing Plan
Combined with your business plan and your financial plan, having a marketing plan in place is very important as well. You’ll need to consider this along with your budget and your initial business plan. It is just as essential, as it helps you to generate business early on.
The best way to develop a marketing plan is to learn by example. Study your competitors. How do they market themselves? Do they send emails to potential clients? Do they post an advertisement in the newspaper? Find out the details and write a plan to mimic those ideas. Not every advertising avenue will work. Make plans to sample different advertising venues and then later on focus on ones that appear to be working.
Hiring a Lawyer
One of the most forgotten steps of all is hiring a lawyer to take care of essential business start up tasks. You absolutely have to bring in a lawyer who understands business law. Hopefully you can find one that has handled service based Internet companies before.
A lawyer can do many things for you. A small business lawyer can help you set up your business, give you advice as to what corporate structure to set it up under, and prepare your paperwork properly so you don’t waste time and money with small errors. You can also depend on your lawyer to write up contracts when dealing with clients.
Having someone on your side before you start will save you a lot of time and frustration. It will also protect you and your business. You want to get this important piece of your business in place early on.
Get Your Accountant – Now
Best to start off things on the right foot. Like the lawyer, getting an accountant on your side is essential. Most people worry about the expense. An accountant isn’t at all expensive!
It does take a little bit of set up. Once you are started, the weekly or monthly meetings with your accountant will save you tons of frustration and headaches, and will save you a lot of money. Talk to several accountants. Shop around for one.
Have the accountant look over your financial plan, and perhaps help you become realistic about your expectations. Next, an accountant can help you figure out your real budget and manage your money for you so you aren’t overspending at first. Talk with your accountant about other small business services he can provide.
Technology Needs
To work as a service-based Internet company, you will need technology. Here are some of the essential pieces of equipment for a start up business:
New computers
Internet connection
Phone system
New software
Printers
Fax machines or a fax service
Cell phones
Laptops
Copiers
Scanners
Photo or video equipment
That’s just to start. You also might need more technical pieces of equipment depending on your service. You’ll need to also plan for adding extra equipment in case you decide to hire help.
Supporting Staff
You might be starting your own company, but that doesn’t mean you have to do things alone. When you are overwhelmed, an assistant, a sales representative, or a customer service rep might help take a load off your shoulders. Sure, the first few months are lean, but you’ll progress faster when you have professionals working on your side to help your business.
You don’t have to hire every ideal person all at once. You could start with a general office assistant, who can help field calls and work with you to develop a system. Delegating tasks to others is what being the boss is all about. Make it part of your business plan to work on your business, not in your business.
It might take a few false starts before you get all the gears turning together. Maybe you might have to work on your own for a while in order to get the business up and running. Maybe you have to sacrifice getting too many new computers at once, or settle for a less expensive cell phone, or even work out of your home for a couple of years.
In the long run, as long as you have a plan, and are flexible with it so you can learn and change as you need, you’ll be able to get off to a great start. If you ever need more help with starting your business, join your local Chamber of Commerce. You can also try SCORE at score. org.
Remember that help is out there for you as you start your new business. Do a lot of research. Ask for help. It helps to talk more about your plans with people, and to write down your ideas. Commit to the idea that your business is possible, and follow the wisdom of others to get started on the right foot.
