You Can Start Earning Immediately With These Home Based Business Ideas

In the present economy, people do not know when they will be shown the exit and when they will be out of employment. If such things happen, a home business is a great opportunity for them to begin a fresh lease of life. These people will welcome such an opportunity as a God-sent one. But, they should realize that they can not make money immediately in a home business. They need not worry. If they opt for a turnkey home business, they can start earning money immediately.

By a turnkey home business, it is meant that it is a business that is already running well. In other words, it is an established business. There is already a business plan and all the necessary items including appropriate strategies for advertising and marketing will have been put in place. There will also be an established customer base. Perhaps, when you hear of such an opportunity, you may be surprised about the concept and wonder if such a thing can be available. But, the truth is such opportunities are certainly available.

An owner may be running the business successfully but due to several extraneous reasons, the owner may be ready to sell the business. It may be due to age or poor health or moving to a different place and so on. The owner may have definitely struggled to build the business but due to the emotional attachment towards the business, he/she may not wish to wind it up. That is the reason he or she may be willing to sell it off if a suitable and competent person is ready to acquire it and run it. This is how you will be able to get such a business with a client base. The owner may not be your competitor since he or she is the person who is selling it. You can also seek guidance from him or her during the initial phase so that you can groom yourself to face the challenges that may arise in the business.

You can also explore the possibilities of running a franchise business. Franchise businesses have become quite popular in the recent times. Especially, for those who are interested in doing home businesses, home franchise businesses are a great opportunity. The greatest advantage in a franchise business is that it already has a reputation. You will get the required training to run the business. Apart from that, you get all the systems, processes and procedures for carrying out the day-to-day affairs of the business. But, for starting this franchise business, you will have to make a payment to the franchiser company and this is called the franchise amount. This amount is dependent upon the popularity of the business and the reputation of the franchiser. Once you acquire the franchise, you will be called the franchisee. Nowadays, you have a number of opportunities in this type of business. According to your tastes, skills, interests and preferences, you can choose the appropriate business. But, before zeroing in on a franchise business, you must spend some time and do the required research because by choosing a wrong line of business, you may end up losing your hard-earned money. Further, there may be some ill-intentioned companies that may try to allure you with their gift of the gab and you should not fall a prey to their nefarious designs.

Hence, by choosing a turnkey home business or a home franchise business, you can start earning immediately. Though you can not become rich overnight, you can definitely grow gradually in these businesses if you learn the right steps and run the business with acumen and astuteness.

Golden Rules of Starting a New Business

What are the golden rules of starting a new business? Or rather, the golden rules of succeeding with a new business?

Anyone who is planning to start a new business – be it startups or business owners who are planning to exit a business and start a new one, go through the same dilemma. What business to venture into? How to choose the right investment? What are the chances of success…?

There is no hard and fast rulebook for starting and succeeding in a new business or everyone who started a new business would have succeeded in it. Every business has its own strengths, weaknesses, opportunities and threats. But there are some fundamental principles that help you lay a strong foundation for a new business and help it grow into a flourishing venture.

Do what suits you best

If you are a start up, choose a business venture that excites you; something which you love doing. Never choose a venture only by its financial possibilities. There is no fun in building up something which you don’t enjoy. If you don’t like what you are doing and do it only because you think it offers better possibilities of growth, then success, even if it comes your way, will be temporary or unfulfilled.

If you are a business owner and you are looking to diversify, choose a venture that synergies with your current one. This will not only help you be in a stronger position with better business knowledge of your industry, you will also enjoy your new venture as a fresh area of growth. For instance, if your business deals with supplying food materials, you can explore areas in processed foods or food products.

Fulfill a need

Fulfilling an existing demand is always safer than creating a new demand. It is one golden rule that always works for new businesses that do not have the financial muscle to start a farm fresh new concept and convince prospects that they do need what you want to sell to them. It is safer to venture into a business which produces products and services that fulfills a need which customers know they have.

But remember to identify the USP (Unique Selling Proposition) of your product/service to make it stand out from the crowd of competitors. Once you yourself are convinced about your product/service, you will be able to convince your customers to buy from as opposed to your competitors.

Are the margins healthy?

The growth possibilities are always better in businesses where you can have a healthy gross profit margin. If the difference between your cost price and selling price is narrow, you will not have much left to plan expansion, hire more people, promote your business or save for reserves. Therefore, choose a business that offers a better possibility of profits.

Give the right picture

One golden rule that many start ups and new businesses give short consideration to is promising more than what they can deliver. Don’t oversell your products or services by promising to your customers something you can’t deliver. It is always better to beat expectations by providing a better-than-expected product than handling disappointed customers who expected more than what they received. Be truthful about your products and true to your buyers.

Business plan is a must

Before jumping into a business, create a well-detailed business plan which will include profit/loss forecast, cash flow analysis and break-even analysis. Creating a business plan will help you analyze how much your start-up costs will be, what your cash flow requirements are and what your marketing strategy will be. Once you have a well-laid out business plan, it will be convenient for you to work your way up, set your targets and plan your growth.

Keep all agreements in hard copy writing for your records

Keep all your contracts and agreements in hard copy. These include contracts detailing the sale of goods, rental agreements, paperwork regarding purchase orders, and storage agreements. Don’t rely on verbal agreements. Business is business, and you will regret it if you do not document everything.

Remember to keep a backup of all your records, because if you store everything in on one computer hard drive without regular off-site backups, you are creating a recipe for failure. One hard disk crash can be disastrous. Don’t take shortcuts when it comes to keeping records and agreements in safe and secure hard copy and backups.

Getting It Right First Time

Firstly, this article is not intended to be an exhaustive resource on the subject, nor is it aimed at corporate businesses whose business models can be very complex and take years to put in place. The idea here is that I will introduce the basic idea of business modelling to those unacquainted with the process, so that they can look at their business and consider their business model (if it even exists) and possibly review things a little to get back into shape.

So what do you understand by the word ‘model’ apart from fashion and plastic aeroplanes, a model comprises of a structure of components, that when put together, make the total picture, (so actually the plane metaphor might not be so far out). When we apply the word ‘model’ to your business, we are in this case looking at the various components of the business that will add value to your customers, hence creating the demand for your products and services in the marketplace.

Some of what you will cover as a business model may be found in your initial business plan (if you ever had one) but a business model is not the same as a business plan. A business model represents the DNA of your business. It is the blueprint of what will make your business work and deliver the returns you want, I assume here that most people are in business to make a good lifestyle for themselves, which will come from the profits derived from their ventures into the world of business.

So the basics of your business model will look at what is your business doing? A definitive question and deceptively simple, but many companies don’t actually have this locked down. What is your business doing? Is one question and there will be an answer to that most people will readily be able to answer, but the next question, far more powerful, is what do you WANT your business to be doing?

Now you are in Business Model territory, as you are defining what you WANT to do and how our business will work in the most effective way to get there.

So now you have the starting point for your business model, next you need to figure out the process of how your business will make as much money for the least expenditure of resources in terms of your time, effort, travel, purchases, financial input, as possible. A bad business model is typified in small business, (and even large businesses to some degree) by the business owner effectively running around like a headless chicken, and the staff doing the same, trying to keep customers happy, then looking at their bank balance and realising forlornly, this isn’t working!! And this can be ultimately placed at the door of a faulty business model.

So now you have a laser beam vision of what you WANT to do, you need to look at the basic dynamics of your business: How you will turn your available time and resources into a good return on your investment.

A really good place to start is with your pricing, pricing is probably one of the biggest areas that people get wrong. When you set your prices too low, and your effort and resources to get those products and services to market are too high, you have got it wrong. Setting the wrong price means your business is not going to be scalable, i.e. you cannot grow and make any real money as you have no cash left over in the business. So pricing is a good area to start putting together your business model.

Pricing can be a complex area, but the two things that affect it most are, firstly, what your customers are willing to pay? And secondly, how much you need to charge to make your business profitable.

So now we have an idea of what we want to charge, we now need to look at how we will add value through our products and services, in the most efficient manner so we take as much of that money we charge for ourselves, obviously allowing putting some money back into the business to create a cash reserve.

Time is the next consideration, very importantly, how much does your time and that of your staff cost? Actually work out how much that time is worth in terms of a cash value. Work out how much travel you are doing, (or if just starting out, how much you think you will be doing), to service your business?

A good business model will be one where your business has scalability built in, this simply means that the business CAN grow, beyond simply yours and your staff’s available time, so you are not at a ceiling point and you can grow, (if that is what you want).

Even if you run a business and decide you are happy with it being small and keeping it that way, you will almost certainly want to have comfort in the use of your time, so that you are not running around with no time left and not enough reward.

The next area is buying. What are you spending money on and how much are you paying relative to how much you are making? A good business model will be one where you have aggressively (in the nicest way) sought the best prices so you can make a good profit, allowing for delivery charges etc. Look at this area and make sure it works, that is modelling, simulating the scenarios so you can see it all working.

The last area I will ask you to consider, is what you are personally taking out of the business? Many business owners are taking a little too much from their businesses and that can extend to the salaries and benefits extended to their staff. I am all in favour of having a highly dedicated workforce, and this should rightly be rewarded, but control is so important here as getting it wrong can be difficult to reverse once it is allowed to get out of control.

Your business model MUST be able to sustain the money you are taking out of the business, as mentioned, the idea should be that the business grows a surplus of cash, so that you are well placed for any opportunities that may require funding, or for overcoming any short term adversity.