Home Business

Describing What Need Your Business Fulfills

The final question in this section of the business plan asks, “What needs or wants of customers are being met?” (Give a brief overview of who you are serving and why.) The information you add here should flow directly from the information you offer to the previous question in this section. If your unique ability to perform graphics work and provide printing services distinguishes you, for example, your target customers might be people who want “one-stop shopping” and want to save time and money by using you for both services.

Describing What the Home Business Does or Provides

To answer the first question in the Business Overview section, list all the services your business will provide. Be specific. For example, if you are starting a bookkeeping business, you might be providing bookkeeping, tax preparation, audit assistance, and financial records organization services.

Offering more than one service provides your business with an advantage. You will draw more customers, and you can often cross sell services - originally gaining a customer because of one service and selling him others as your relationship grows. However, you will want to refrain from offering too many services. Aim for three to five separate services. Fewer than three, and customers are less likely to come to you. More than five, and prospective customers might not believe that you can do everything you say, or might feel that you do so many things because you do nothing well.

As an example, let’s say that you offer sales consulting. Now, if you also offer computer repair, writing, and graphic design, you will be sending a message to clients that you aren’t focused - these services don’t mesh well together, and there appears to be too many of them. In the preceding example, it would be wise to jettison the computer repair. You could then recast the writing, graphic design, and sales consulting as a “one-stop marketing shop,” or a sales-boosting business. The writing and design continue to be offered, but only for sales-related materials for your clients. This pulls your business in to a cohesive offering. Instead of four disparate, unfocused services, you are now offering one, cohesive, inclusive service - building credibility and attracting more clients.

Overcome Your Inexperience

Everyone has to start somewhere no matter what kind of home business your getting into or getting involved with. So don’t let that hinder or slow down or be an excuse that your inexperienced in the home based business industry!

I noted that ageism actually works in your favor when you strike out on your own. Owning your own business remakes you from an employee who seems “too old” into a consultant who is wise and experienced.

Conversely, if you are on the opposite end of the experience ladder, you might struggle gaining the confidence of potential clients. If you don’t have at least three to five years of experience in your chosen line of work, you will need to prove to prospective customers that you have what it takes to work for them. (And no, a college degree, in and of itself, won’t cut it.) For those with little or no experience, you might have the necessary credibility if you:

• Started a business (and operated it successfully) earlier in your life

• Worked at a job in your chosen field while attending school

• Have a solid background in business in general and possess sufficient basic business and interpersonal skills (often called “transferable skills”) In all three cases, however, you will be working harder than other business owners, who have the experience you don’t. Seriously consider this. The average 12-hour day of a new business owner might be 14 or 16 hours for you, as you gain experience others already possess.

Review Your Employment Contract

Before you put the first word on your business plan, take out your current employment contract and read it carefully, word for word. If you have emails, letters, or other documents instead of, or in addition to, a formal contract, read those, too. Don’t assume that stipulations agreed to in email are not binding because you “didn’t sign anything.” In many instances, such emails can be considered evidence of what is called an oral contract, and therefore legally binding.

If you are unsure whether you would be held to the terms, consult an attorney. Did you agree not to contact customers about your impending departure from the company or for a given period of time after leaving the company’s employment? Are you required to provide a certain amount of notice? Are you allowed to pursue a business that competes with your current employer? Employment contracts often include language that restricts or prohibits direct competition, taking customers, and similar activities. Be sure that you know what limitations you must abide by prior to starting your business. But what do these limitations mean, in terms of your business? It depends:

• If you are planning to start a business in direct competition with your employer, and your employment contract forbids it, your home business plans might be thwarted. However, if the non competition language seems broad, you might want to have an attorney review it to determine whether it is enforceable. But bear in mind that you might have to fight your employer in court to prove how unenforceable it is.

• If you are not allowed to take current customers with you, you might have to allow for a higher marketing budget. Check whether your contract allows you to have any contact with these customers at all - even if they cannot be your customers, perhaps they would be willing to refer others, thus partially circumventing this restriction. As your excitement about your business escalates, you will want to tell the world. Don’t do it (not yet, anyway).

Although you might be very excited about your new venture, your co-workers might have very different feelings. They might be jealous, longing for the courage you have and envying your ability to make such a transition. Meanwhile, your boss could become suspicious, wondering if you are stealing supplies or customers, wooing other employees to be part of your new venture, or just not being as loyal as he expects you to be. Depending on your company’s policy and your current job, you could even be escorted out the door as soon as you announce your plans. Keep quiet until you give notice with a specific plan in mind.

Work At Home need list

- Computer with spreadsheet and/or database programs installed (or spreadsheet paper and notebook, if working manually)
- Calendar
- Contact manager or rolodex (however you will keep track of customers)

Important Electronic Records

In most instances, your contact management records, calendar, and business expense and income records will be maintained electronically - usually on your computer. These records are the heart and soul of your business. Years from the time each entry is first recorded, they will continue to provide important information to you about how to make basic business decisions, where and how to grow, and what markets to target. Five years from now, you might see a pattern that shows February is a slow month - always.

That is good to know because you can make plans to accommodate that trend. You might notice which clients have provided a lot of steady income, which have been one-hit wonders, and which have been sporadic yet highly profitable. You might also notice that, in five years, your revenue (income before expenses) has tripled. That’s a great way of telling others how well your business is doing.

In fact, these records provide important information to third parties as well. If you should ever choose to sell your business, these vital records document the value of your venture. Should you ever be audited, the IRS could seek financial records from you - and go back as far as you have owned your business, if they feel it is justified.

On a more positive note, should you decide to seek a loan, it is absolutely necessary to provide the financial history of the business. And, should you choose to sell your business, you will need to maintain the records that provide so much value. In most instances, we talk about these records as if they are all kept separately in separate software files. Can you combine some of these records in prepackaged software? Sure. Just be sure that any piece of software works well for you and provides you with all the information you need and want to run your business. Don’t try to fit your needs in to the software - rather, the software should allow you to customize it to fit your needs. Use software on a 30-day trial basis if you are uncertain whether it is the right tool for you.

Please read our other post on opening online home business preparation that we will post later on today!

4. You can get wealthy by operating a home business, but you do not have to be wealthy already.

How much startup money you need depends on your acceptable risk level, the other resources you have available to you, and the type of business you start. Later, you will form your draft business plan - and the budget that goes with it. Because home businesses vary widely, so too do the funds required to start one. Most home businesses require the savings of at least two to six months of living expenses. Additional funding sources are available, too, for small-business startups, particularly if you are in a Redevelopment Zone.

Redevelopment Zones and Enterprise Zones are undeveloped or povertystricken areas the government is hoping to improve. The government will provide you with loans or other assistance in exchange for you establishing a business there. Other criteria are also sometimes required, such as hiring local help. Check with your local (city or county) government for more information about these zones in your area.

For possible funding sources beyond your local bank, check with your local Small Business Administration office (or go online at www.sba.gov). Enterprise Zones can be found by contacting your state or local government offices.

5. Results count. Paper gets recycled.

Learning comes in many, many forms. Experience in the real world, trying something new, independent reading and study, travel, volunteering, raising kids, and many other activities all offer opportunities for learning valuable skills. Don’t get me wrong - college degrees are very valuable. But running your own business is a highly pragmatic endeavor. For someone who holds any type of formal academic
diploma, the actual degree is usually not as important as what you have learned to get it.

In some professions, licensing is required, often in a process that includes coursework, experience, and a college degree. But if you are considering being an accountant, for example, you should already be aware of the requirements and possess any licensing you need. If you are in a field in which licensing is key, and you don’t have it, you might want to wait (or consider a line of business in which licensing is not required).

And if you have not had the opportunity to obtain a college degree, don’t sweat it. Did you know that Bill Gates dropped out of college? Dave Thomas, who started the Wendy’s fast food chain, never made it to high school. Some studies have shown that college graduates earn more, but these studies have,
overwhelmingly, focused on people who are employees, not business owners.

Work From Home Business To do list

- Determine whether you’re financially and psychologically ready to start a home business.

- Examine your skills in self-discipline, organization, and perseverance.

- Explore your abilities in customer-relations, creative thinking, and leadership.

- Think about your interest in ongoing professional growth and development.

- Determine where and how you can achieve improvements in your home business-readiness.

Work at home jobs are a hot trend these days. Everybody is looking for that perfect work-at-home job that will not only get them earning but will also give them the right sense of fulfillment career wise.

Although more and more people find working at home a good advantage, not all these people would like to settle for that no-brainer work-at-home job of doing surveys or just playing games. They want to keep that sense of professionalism even when just working at home.

Professional work at home business jobs abound in the Net. These are not your ordinary anyone can do it work from home job. These jobs normally pay more and are more stable.

Among the many professional work from home jobs out there include freelance writing, medical transcription, copy editing, just to name a few. Like the regular offline job, you can work about the same hours doing these things but at your own pace and at the comforts of your home. Professional work-at-home jobs normally get you earning an average of $50,000 annually.

Here are tips on how to land a professional work at home job:

1. Enroll in an educational program relevant to that professional work-at-home you are aiming. Although most of these companies provide training prior to getting you working live, it always pays to have a good background on the field you want to work in. You don’t have to worry about getting into the traditional in-campus four-walled educational system again, there are now home training schools and online universities you can enroll into.

2. Aside from the personal dream of wanting to get that professional work-at-home job, some experienced professional must have inspired you to do the same. It will help a lot if you can get in touch with him and ask for useful advice on how he became successful at what he’s doing. Even with formal educational training, a personal mentor always does great magic.

3. Love what you do. Don’t get into work from home jobs just for the sake of having a job or for the money. Sure almost everybody will say that they’re in it for the money, but loving your job will do wonders. Not only will you feel a little more enthusiastic with the job, but you’ll also be excited to work hard every day and come up with good output.

4. Be organized. Now that you’re your own boss, it does not mean that you can go as you like with your work. Being organized means being able to discipline yourself when it comes to meeting deadlines, managing your time, and fulfilling the responsibilities that goes along with the job.

5. Get the right job. Looking at your resume and the education that you have, plus the inspiration from your mentors, you will know what professional work-at-home would be most appropriate for you. When you’re at it, you can probably put up a website showcasing your services and the things you can offer. This will be a big boost to your profile—and to your pocket.