3 Factors to Consider When Starting a Home Business
The Internet is expanding the possibilities for entrepreneurs around the world to start Home Businesses, yet this doesn’t mean making an Online Marketing living from them is easy. Indeed, successful home businesses take hard work and dedication, yet with the right direction, support, and effort, they can be very rewarding. In this regard, let’s examine 3 factors to consider with a Home Business Start Up.
#1. What Type of Business?
Some entrepreneurs already have a business idea, while others have the ambition, but not the idea yet. Either way, the first factor to consider is what type of business will this startup be? There are many different choices to consider, but the main types are:
- Online Service: Professional services, writing, web development, design, consulting, etc.
- Offline Service (promoted online): Trades, hauling, moving, dog sitting, giving rides, renting parking spots, home care, delivery, etc.
- MLM or Direct Sales: Selling products or services on websites and locally out of home through an already established system with residuals from referrals.
- Selling Products Online/Offline: Affiliate blogging, resale, vertical specific industry goods, wholesale distribution, Ebay, Amazon, Etsy, crafts, etc.
Within these 4 categories many business ideas are possible, as well as outside of them. Mainly, Online Marketing entrepreneurs need to consider exactly what services and products they want to focus on, then choose the platforms they want to use to make sales. Just keep in mind, all successful Home Businesses are going to take effort and work, so avoid any “get rich scams” that promise riches with no effort.
#2. Funding and Scaleability:
The process of choosing a Home Business Start Up will include considerations about the funding needed and the scaleability of the idea. Basically, the questions are: how much will the business cost to start, how long will it take to make money, and how much money will be made? Maybe the biggest factor in the demise of startups is over-estimating the revenue it will bring, therefore, entrepreneurs should underestimate revenue projections to be safe.
If the startup does make a profit, however small, the real numbers can be scaled to project the possibilities of growth. Truth is, most startups take many months or years to replace full-time jobs, so entrepreneurs should have a secondary source of income to draw upon during this time. In many cases, it’s the time that’s not available for the entrepreneur, rather than the funding, because they’re trying to keep another job in the process.
The entrepreneur has to have the time and funding available to grow their startup to a point where it can make a significant income. Many times, this means they’ll have to work another job to have an income source, until the startup makes enough money to replace this job – unless they’re in a financial position to focus completely on the startup. This critical growth period – when the startup isn’t making much money, yet requires time and funding – is where most entrepreneurs fail; commitment, realistic estimations, and hard work will ensure success during this period.
#3. Marketing and Sales Funnels:
No matter how much hard work and dedication an entrepreneur gives, they’ll have to have an effective marketing strategy to succeed. This can be a mixture of traditional and digital marketing, depending on the type of business; some may exclusively use digital, while others will use both. Digital Online Marketing for any Home Business start up is nearly essential, and always helpful.
Marketing strategies always aim to get prospective customers into a sales funnel. Even when the product and service are excellent, unless the marketing strategy is effective, sales will not come as readily – it makes all the difference. Entrepreneurs need to consider how they’re going to market their Home Based Business start up, as this will determine the: funding needed, type of business chosen, scaleability, and growth.
For instance, if an entrepreneur is skilled with marketing, they would do well with an Affiliate Blogging or MLM Home Business start up; if not, then they would do better using an already established selling platform for their products or services, such as Ebay, Uber, Amazon, Porch, etc. They could also outsource digital Online Marketing, yet this would have to make financial sense with the ROI.
Although most people would like to own their own Home Business Start Up, most aren’t willing to do what it takes to make it happen. The Internet is opening up many possibilities for entrepreneurs, yet it still takes: hard work, dedication, funding, and effective marketing strategies for them to succeed with a home business start up. For those willing to do what it takes, success is only a matter of time.
Essentially, entrepreneurs need to: choose and commit to the type of business starting, be realistic with growth estimations, secure the funding and time needed, and develop effective marketing strategies for sales.
OmniTech Enterprises, LLC would like to help aspiring Digital Entrepreneurs find the funding, inspiration, and training needed to start and grow a profitable Home Business Start Up. If interested in learning more, please peruse our Blog site: http://OnlineMarketingHomeBusiness.com . We look forward to assisting you in becoming a successful Digital Marketer.