Home Business

Having a home-based business is a kind of double-edged sword. Surely, there are the usual the perks of having financial independence and great flexibility. Having no bosses to please and office politics to contend with is something that many people appreciate. However, establishing a home-based business is challenging and can result in failure without having certain skills and attitudes. Here are some things to keep in mind before jumping into the fray:

1. Establish a business plan.

Business plans are to entrepreneurs as navigational tools are to ship captains. They provide a sense of direction and serves as a roadmap in achieving certain goals and milestones. While it is certainly possible to employ a trial and error approach, this can be costly and more likely to fall flat. Business plans, while they may not guarantee success, can alleviate some of the risks of starting a business or help entrepreneurs prepare for certain inevitable occurrences.

2. Have a realistic mindset.

There’s nothing wrong with aiming high when starting a home-based business. As a matter of fact, ambition is a key component of success. However, having unrealistic expectations can sometimes cause people to make bad decisions. When starting a home-based business, it is usually better to start small and then expand in the future as opposed to spending too much for a start-up that has an unproven chance of success.

3. Failing does not necessarily mean outright failure.

New and experienced business owners are bound to encounter heartaches and disappointments along the way. Learning to treat failures as learning experiences is usually what separates successful people from the rest of the pack.

Thomas Edison, before being renowned as a prolific inventor, had to go through countless failures in his career. Instead of treating his flopped creations as a discouragement, Edison merely retorted that he had simply discovered ‘a thousand things that don’t work’.

4. Learn to balance passion with financial considerations.

New entrepreneurs are often adviced to start a business related to something they are passionate about. There is nothing wrong with considering one’s hobbies when starting a business, but the problem with that approach is that it sometimes blinds people from other businesses that are potentially more profitable and fulfilling. Home-based entrepreneurs must learn to keep an open mind to succeed.

Anyone can start a work from home business, but success can only come to those who have the right mindset and expectations.

The combination of technological advances and strong commerce infrastructres today have created diverse business opportunities that can be operated from home. The Internet, in particular, has made it possible for individuals to start home-based businesses that can reach the global marketplace. One good example is information marketing, which is considered by some as the most profitable online venture today.

Information marketing is the business of selling informational products such as e-books, audiobooks, e-zines/e-newsletters, webinars, online classes, and/or special reports that are sometimes called ‘white papers’. Getting into the information business is fairly cheap and can be started by almost anyone. In this business, it is more important to possess some knowledge of a particular subject than to have big start-up funds. There are countless people today who are willing to pour in their money to obtain certain types of information.

When targeted properly, even simple information can be highly profitable. Not only can informational products be created and re-sold for very little overhead, they can also be a source of residual income. In other words, a product will continue to make money for as long as it is on the market. The key to success is to spot ‘niche markets’, which are tight-knit sub-groups within an umbrella market. For instance, within the college population, there are niches such as athletes, musicians, fashionistas, and math majors.

How to Get Started:

1. Decide which niche to target. It is much easier and profitable to have a small but tight customer base with highly similar needs as opposed to having a wide audience with scattered interests.

2. Purchase some basic equipment. Having a computer and a PDF software is a must. However, some people may also need to buy web cameras or audio recording software to create their products.

3. Create a product. Today’s multimedia tools have made it easier for home-based entrepreneurs to produce their material. The real work lies in creating value for the product and in establishing one’s expertise on a subject. Doing this may require some research and/or interviews with proven experts.

4. Sell the product. This can be done either by creating a website or selling through online megastores like Amazon or Ebay. The latter is ideal for those with limited technical expertise in designing websites.

Information marketing is a great way to make money and is perfect for people who love to share their knowledge to others.

A work at home business can be one of the best decisions of your life!

The internet has provided the world with unlimited abilities to shop internationally, to communicate globally and to explore beyond our forefathers’ wildest dreams. Anybody anywhere can access information in ways inconceivable in the past. The current technology even allows us to explore beyond our earthly plane into space. We truly live in a remarkable age.

On a more personal level, the internet also allows people to create their own working environment, even creating their own employment. Marketing and selling online is at an all-time high as individuals explore opportunities to make money from home on the internet. There are many different ways to successfully generate income online. Here are a few:

• Selling On eBay — eBay has become one of the largest marketplaces on the internet. It has also spread out to the physical marketplace with ancillary services like shipping products and storage facilities. The opportunities and options on eBay are endless. Virtually everything and anything can be found on eBay.

Everything can be sold on eBay including, but not limited to, jewelry, furniture, houses, cars, coins, postage stamps, collectibles of every kind, movies, music and even businesses. While eBay does take some time to research in order to get the best results, after a comprehensive tour of the site and reading everything you can, eBay can easily supplement or replace the income from a regular job. With a credit card or bank account as backup, a person can generate income easily within 24 hours.

• Craigslist — Craigslist is another online community marketplace. It has pages for every state in the union as well as many countries. The biggest difference between eBay and Craigslist is the fees. Craigslist has none and eBay has several different kinds depending on what you’re selling, how long you list it for, how much you’re asking and how much you get for the item. The other difference is distance. Craigslist is designed for local transactions.

• Writing — Website owners and bloggers need text for their sites, blogs and businesses. They don’t always have the time, desire or skills to write their own text. There are some sites that connect authors with clients. A person who likes writing and has even a modicum of writing skills can derive at least a supplementary income by writing. If those skills are substantial, an author can even sell his or her books, poetry or information online.

A work from home business can help you supplement your current income or even replace your income.

Using Pros to Craft Your Web Presence

And what about your web page? There are several basic functions you will need to cover when you have a web presence, and it is very rare to find one person who has all of these skills. However, you should be able to find

• Webmasters, who have the technical know-how to create and maintain the site you want. Some might only create the site, leaving you to go elsewhere for maintenance.

• Web designers, who are more concerned with how the site looks (from a graphic design perspective).

• Web marketers, who can help you drive traffic to your website, and get it noticed.

• Web hosts, of course, merely keep your site on display on the Internet. Because of the many specialties needed, you might have a webmaster who consults with your marketing person and graphic designer (to keep your website focused on your message and to give it the same look and feel as your printed materials, respectively). Covering all the duties involved is more important than what a person might call himself.

Finding Professionals to Hone Written Marketing Materials

Here is a list of the most commonly used professions to help you market your business via written documents – and what to look for:

• Graphic designer – This is someone who takes care of how your marketing materials look. He will take the text, logo, and other information you give him, and lay it out in a way that is visually pleasing. You might believe you can do these tasks yourself, but think carefully about this decision. Layout and design is both an art and science, requiring a professional sense of what catches the eye, how much whitespace is needed, and whether the page is balanced to laying out the materials in a way that fits web or print specifications. Some designers will do web materials as well as printed matter, although most who do will limit their activity to technically simple sites (for example, with no e-commerce or linking databases).

• Printer—Yes, this is the person or business who prints your materials from postcards to flyers to brochures to business cards. When selecting a printer, ask for samples of her work and a written estimate of cost and turnaround time. Look for the little details that can make your life easier, too, such as free local delivery and an explanation of why it is best to print a particular document in a certain way. Don’t be afraid to ask about price breaks, either. Most printers can offer substantial per-piece discounts when more of a particular item is printed. So if you’re thinking about printing brochures, for example, ask for an estimate to print both 500 and 1,000 brochures. The price difference might be minimal. Some printers specialize in environmentally friendly inks and paper, but their prices might be substantially higher than traditional printers.

• Writer – These individuals can craft the language you use in your flyers, brochures, and other printed or web materials. They might also help you write speeches or come up with written handouts to give to audiences when you speak. As with the printer and graphic designer, the writer should be able to provide you with a written cost/time estimate and relevant examples. Delivery of the text should be relatively easy, too – be sure that the writer has the software you need, or can easily email text to you in a useable format.

Using Professionals to Help You Market Your Business

Although you can do many of the low-budget marketing activities on your own, it also makes sense to hire someone else to help you in many instances. The most likely people you will want to speak to are a marketing strategist and/or a public relations specialist:

• A marketing strategist looks at your overall marketing plan and recommends ways to improve it. She might suggest how to improve your current marketing efforts (such as making your current web presence more effective) or suggest a venue you aren’t currently using (such as appearing at a special event). She might also suggest ways to bring more focus to your marketing approach and minimize a scattered, trial-and-error strategy. When considering a marketing strategist, look for someone with broad marketing experience and a knack for maintaining focus and organization.

• A public relations specialist works with you to get you noticed by the media. This means suggesting story ideas involving you and your business to television, radio, and newspapers (also called “pitching” a story). When hiring a public relations specialist (or publicist), look for someone with key media ties. He might have actually worked for one or more media outlets. He can also usually help you craft a press release, and if hired, might insist on doing the writing himself (with your input) to achieve the desired result. For both of these professions, they should be able to provide you with a set price for a one or two hour consultation. This allows you to invest a relatively small amount of money while also making sure that each is the right person to undertake more expensive projects.

After the consultation, consider what was suggested and whether you’d like to extend your marketing efforts with the professional or simply act on the advice provided. Also, both of these professions tend to specialize, so ask what industries their clients generally come from – for example, publishing, high-tech, small retail businesses, or some other specialty. Be sure that they have the industry background you desire, while providing sufficient assurances that work on your particular project is not merely a cookie-cutter repeat of what they have done for your competitors.

During or after the initial consultation, each one should be able to tell you what is unique (and marketable) about your business so that the boilerplate approach is avoided or minimized. Other marketing professionals commonly used include

• Image Consultant/Voice Coach. This person might help you appear more professional when you meet people or focus solely on a particular venue – for example, how you look on television or sound on radio. The idea is to get the world to notice you, and not bypass you because of the way you look or sound. Most will offer a set fee for classes, making budgeting easy to do, with the option of more one-on-one consultations if desired. Your publicist should know of someone to refer – or ask friends who appeared on television or radio who they used.

• Marketing Coach. This is someone who acts as a coach with a focus on helping you market your business. This person might offer many of the services provided by a marketing strategist or publicist, but generally do so with an emphasis on providing you with tools, help, and insight to do the work on your own, as opposed to doing it for you. As such, they should be both certified coaches and have a strong background in marketing. Visit the website of the International Coach Federation (coachfederation.org) to find a certified coach specializing in this in your local area. Other coaches specialize in helpful, marketing-related activities, such as public speaking.

How Much Marketing Is Enough?

The suggestions in this article can make marketing sound like a never-ending process. Although it will continue for as long as you own your business, there are several circumstances indicating you might need to take a break:

• When you are tired of talking to strangers (or people, period), give yourself a break. That’s enough for the day. If you still need to do some marketing activity, focus on researching prospective clients or some other activity that doesn’t involve meeting the public. (Just don’t make “research” the only marketing task you perform.)

• When you need all of your time to perform work for clients, go ahead and take a brief marketing pause. (By brief, I mean one to two weeks.) If you are always taking “breaks” from marketing, you might need to look at your schedule and figure out a way to make the marketing process a more natural fit. For instance, you might make Friday night a postcard-labeling-andstamping party, with pizza afterward. When you receive responses from the postcards, schedule the meetings when you would be taking a break from working anyway – perhaps at lunch or over mid-morning or mid-afternoon coffee.

• Longer projects might require your full-time attention. That’s okay – but compare your marketing cycle to the project’s time frame and schedule marketing appropriately. For instance, let’s say that you are working on an intensive project lasting six months. Your marketing cycle (from initial marketing activity to signed contract) generally lasts two months. This means that during month four of your large project (at the latest), you need to gear up and begin marketing again.

Why? You don’t want to come off a large project with nothing to do and no money coming in – you want to have other work to do as soon as the large project ends. At some point, your marketing will downshift. When you have steady work coming in, month after month, you are probably at a point when you don’t need to do special marketing “pushes,” such as postcards or ads.

Here’s one work at home business example:

Let’s say that it is early April. You look at your spreadsheet and see you have work lined up for this month (April), as well as May and early June. In a week or two, work for the rest of June is pretty much lined up. At this point (and assuming your monthly total of all business is sufficient to meet your needs), you can probably avoid huge mailings (for example, mailing postcards and flyers), speaking strictly for marketing reasons, and other marketing activities that seem to take up too much of your time. At this point, you want to shift to “maintenance marketing” – one or two regular activities you do each week that will continue to generate fresh leads, yet take a minimum of time and money. (By the time you get to this stage, you will know precisely which activities those should be, based on what has worked and not worked in your home based business.)

Here’s an example: Several years ago, I “downshifted” to a maintenance marketing schedule. While I might send out a postcard mailing every one to two years, on special occasions, I’m not sending two to four mailings a year, as I used to do when my business was new. Nor do I write as many articles or perform as many speaking engagements solely for the publicity. But every week, I attend BNI (Business Network International), and network with other small business owners for about two hours. This is now my primary marketing activity. If I see a company that would make a particularly good client, I might write the key decision maker a letter introducing myself. For the most part, however, the bulk of the marketing is being done during those two hours per week. (I also meet with BNI colleagues over lunch or coffee, and this might add another hour per week.)

That’s not a lot of time, really – particularly when compared with the early years of my business, when marketing was a 20–30 hour per week commitment. The loss of a client, a project falling through, or other setback might bump up my marketing to 5–10 hours per week, but only for a brief period of time.

Press Release

This is an announcement to all relevant media outlets (radio, television, magazines, newspapers), letting them know that you have news. A lot of these are recycled, particularly if they’re little more than, “Yay! I started my business.” Send one out if you really have something newsworthy to announce – but be sure that it is truly newsworthy. What type of story is the media outlet expected to write or air? Why is the beginning of your business newsworthy? Unless you are doing something no one else has thought of, or you are holding a big event, it probably isn’t. And, after you come up with a newsworthy press release, your work isn’t done.

Plan to spend time calling to follow up on each release sent to each contact. The combination of an extremely newsworthy idea and persistence will work. Anything else will fail. (See Appendix A, “References and Resources,” for press release particulars.) Keep this type of marketing in mind. It isn’t likely to be a good fit when you start your business, but you can certainly build your business to a point when you’re ready to do this—perhaps one to three years down the road.

Marketing on a Budget

I hear you scoffing. ”Radio and TV ads? What, when I win the lottery?” It sounds like the marketing plan for some large, multinational business. And here you are – small, new, feeling poor (or actually poor, or both). There are many ways to market your business without spending five or six figures— or even four. Because the touchstone of good marketing is getting out, meeting people, and telling them about your business, many effective marketing techniques take time, but not much of a direct outlay of cash. You will still spend money, but we’re talking tens or hundreds of dollars, not thousands. So it’s now up to you to get out and meet people – or prepare to do so. Remember that list of ways to market my business I’m asked about? Here are the ones that work for me. (Most don’t cost very much.) Choose one, and do it tomorrow. No clients yet? Phone still quiet? Choose another one, and do it the next day. Still no response? Keep going.

Next we will talk about how much marketing is enough.

Continuing on with more home based business marketing techniques that are useful.

Website

If you’re a service business, your website acts as a sort of virtual brochure. It will be rare that someone contacts you strictly after seeing your website with no other contact. Websites are vital, but they work best in conjunction with other forms of marketing. Although updating your website might be considered part of your marketing work, don’t fixate on your website to the exclusion of meeting real people and connecting.

Cold Calling

I’ve never tried this, and quite frankly, never want to. Before the “do not call” list went into effect, my responses to telemarketers ranged from professional but abrupt to downright nasty (for which I’ve done penance). Because most of us feel the same way, why would you want to market your business in such an annoying way? Can you imagine someone barging into your home any time they feel like it? This is what cold callers are doing – barging in, and unilaterally attempting to change the recipient’s calendar and priorities. Because it’s also time-consuming, draining, and rarely the image you want anyway, you will probably want to avoid it in most instances.

How do you get the attention of that ideal client who is a business? If you can’t find a personal connection, send a marketing package (cover letter and brochure minimum – press clippings if you have them) to the key decision maker. Make a follow-up call one week later, asking if he received the package, and does he have any questions. But even here, be prepared for a low return – many decision makers have gatekeepers, and/or routinely discard unsolicited mail. Avoid any “pseudo-cold-calling” strategies. In other words, don’t call strangers and say that you’re conducting a survey, providing information only, or any other strategy used to weasel out of saying that you’re cold calling.

With the Do Not Call registry in place, calling consumers (for example, private individuals) can be a costly mistake. Businesses are not covered by this registry, however, and some exceptions for calling consumers include calls from charities and calls from political organizations. If you’d still like to make cold calls, particularly to private households, be sure to check out the Federal Trade Commission’s Do Not Call website, ftc.gov/donotcall/. Contact a lawyer if you are uncertain whether the specific calling you are doing is prohibited.

Tried and True Marketing Techniques

The following sections describe some traditional and low-cost marketing techniques available to home businesses. You probably won’t want to use all of them, but almost any business can benefit from some variation of these types of marketing.

Display Advertising This is advertising that is displayed, usually in a newspaper, magazine, phone book, and so on. (Website ads are discussed in the next section.) If you are a retail organization, display advertising needs to be part of your marketing plan. If you are not a retail business, however, display advertising might just be an expensive exercise in frustration and expense. So, before you hire a graphic artist and start calling for ad kits,

• Do your homework, and do it well. Display advertising really needs to be researched thoroughly if you are going to do it at all. Which venue? Your local newspaper or the national magazine? (There’s a huge difference in price, believe me.) Can you handle the response if the ad works as projected? Will you get inappropriate calls? What is your break-even point? How many clients or how much business will you need in order to make more than the cost of the ad? Can you handle that much work?

• Understand why you want the ad. Display ads might be a prudent move for other reasons than a direct line to potential customers. If it is important that you or your company be well-established (for example, a building contractor), it might be a good idea to invest in display ads. The impression that your company can spend the money for a large display ad, repeatedly, can make a customer choose to do business with you because he knows that you didn’t just arrive in the community yesterday. Also, many of these ads appear in nonprofit venues, such as theater programs and school sports calendars. So, you might be placing the advertisement more as a way to show community support. It’s a great way to build what’s known as “goodwill,” but you might not see a direct return in dollars and cents in the near future.

• For a service business, display ads might backfire. Let’s say that you need a good mechanic. Which would you rather use: Your friend’s recommendation or someone from an ad? That’s right; you’re going to go with your friend’s recommendation if at all possible. So if you’re the mechanic, and you’ve placed a display ad, who is going to call? People who can’t reach their friends in time, are new to the community, or don’t like their friends’ answers. In other words, clients who are more likely to be both desperate and a bit picky (or downright difficult). It’s a great way to reach people new to the community (or perhaps new to having the need you’re addressing, such as folks who just purchased a used car). But you will also have to screen prospective clients more closely, and the percentage of callers who just aren’t a good fit will be higher. (You can mitigate this by choosing your venue carefully – perhaps a display ad in the Welcome Wagon package targets the newcomers you want, while avoiding less desirable customers.)