Home-Based Small Business - Five Easy Steps to Success

Did you know that, in Australia, 60% of small businesses fail within the first twelve months? For those of us who would like to start a small business - maybe even work from home - a statistic that is very discouraging.

It means that your business idea is doomed to failure? Far from it! There are steps you can take to greatly increase your chances of success. With a bit 'of time and some serious research you can hit the ground running. First things first ...

The brilliant idea

First, of course, it is necessary to develop an idea. Typically, business opportunities can be divided into four groups:

1. Offering an existing product / service in an existing market.

2. The introduction of an existing product / service to a new market.

3. Equipped with a new product / service in an existing market

4. The introduction of a new product / service to a new market.

At this stage of the game the only limit is your imagination. Inspiration can come from anywhere - maybe you have a hobby you'd like to turn into a full time job, you can be on the receiving end of bad service one day and decide to try to do better yourself, or you can have a talent that you would like to exploit.

Once you have found something you like to do, it's time to look at the market and see what's on offer.

Passing the test

So you've got a great idea and you're keen to roll with it, now is the time to put to the test. For the purposes of, let's say you have a passion for healthy living, and that you want to deploy a range of lifestyle accessories that promote a healthy lifestyle with a do-it-yourself approach.

Ask around: Is there a market for products that promote healthy living? What types of products are available? Who would be in competition with the competitors and what they offer? Do you have the skills necessary to run such a business and, more specifically - what would those skills be? Where is your business?

Once you have answered these questions you should have a fairly clear picture of what your activities will be similar.

Source products and decide to do some further research into the range of lifestyle offered by a company called Vitality 4 Life. Your life experience as well as some work you did as a dietitian has given you the necessary skills, and think that you'll be able to work from home, giving more time for family. There is an existing market, but there is room for expansion. Now is the time to take a closer look.

To be or not to be?

It 's time to get to the nuts and bolts. You do not want to jump in feet first and find out something the hard way that the budget simply does not work.

To begin, sit down and figure out if you need to recruit staff, which means paying wages.

If you rent a room must be able to pay the rent, and the location must be suitable for your business and target market (which also means that you should think carefully about what your target market is). You will also need to understand the likely demand for your product / service.

Ok ... did you work that there is sufficient demand for good quality juicers, sprouters, water filters and other high-end accessories to take a shot at a gas as a home based business opportunities. Now you need to do some marketing decisions.

Look at me! Look at me!

Advertising can be expensive so you'll want to be sure that your advertising budget is spent well. This means that the search market, this time one-on-one. Profile your customer groups so you can aim the marketing at the right group / s of people.

Draw up a questionnaire (a short questionnaire - people run out of patience if you wander too long) and hang around outside some of the local gyms (for our particular example). Come with a mixture of open questions (What do you think of ........?) And closed questions (Do you have a gym membership Yes / No?.) Sliding Scale can also be useful.

For companies the health of our accessories, a good question might be 'How did you hear about this gym? Radio, TV, newspaper, word of mouth, etc. .. 'The question would then give an indication of the types of media that your target group responds better.

Choose a business name, print some business cards, buy the pieces and get ready to trade!

Measure it, manage it!

A teacher of mine noted that, in business, if you can not measure you can manage.

You must be able to plan ahead, and do you need to know - or be able to predict with precision - the total sales. The equation is simple: the number of customers x average sale x frequency of visits per customer per year = total sales. Remember, revise it often, measure your business and you will be able to handle it!

Keep an eye on your bottom line and, above all, always be aware of your cash flow - the good money you have in the bank. Allow for periods of invoice (14 days, 30 days etc.) when you're planning your budget.

The market has its own life, and no one can prepare for any eventuality. Think about it a bit 'in your idea, make sure there is a market for what you are offering, research, research, research, promote your business effectively, you always know what's going into your bank account and do not forget the flow of Cash!

It's not perfect, but if you follow these simple steps, you'll be miles ahead of many new companies to small businesses. If you heard a great business opportunity at home, or have a product or service to your market, at least you know where to start! ......