Aside from having a marketable product or service, here are the four major factors that MUST be present to permit a profitable home based business opportunity.
It could be said that this is the most important factor to consider when choosing what home based business might best be suited to your particular situation. After all some pretty major decisions must be made regarding this one question.
- What will it cost to get this baby up and running?
If you are planning to start up a new business selling your new concept in widgets then you’ll have to take into consideration the costs incurred in manufacturing enough of the product to send out a test market.
If the test returns a positive result then you’re on your way and now you can think about gearing up and going into full production. In short, this process could easily add up to a good-sized outlay of cash.
- Do I have enough in savings to cover the initial expenses?
Ideally you have had a chance to sock away enough money over a period of time to cover any expenses for getting started in your new business. Do you have any other resources that you could call upon? Maybe a joint venture would be an option.
- Shall I apply for a small business loan?
If you have a good credit rating and can come up with a good looking business plan you might persuade a lending institution to front you enough capital to launch your new business. You may even be able to get enough to cover living expenses for awhile.
- Do I really want to take out a second mortgage (ouch!)?
In today’s economy just the thought of that one causes some of us to break out into a cold sweat. On the other hand with today’s economic state of affairs that is sometimes the only option one has to acquire the necessary funding to forge ahead.
Don’t be discouraged, you’d be surprised at how many work from home programs there are out there that can be launched with very little money and a heavy dose of elbow grease and If you are into an online home business then you could actually get started with very little money and a heavy dose of your time.
Some might say that this is the most important thing when it comes to picking a venture that will allow you to work at home. Again, there are a few questions that must be asked.
- What return can I expect on my investment (of time and money)?
Let’s be realistic here. Consider what it will cost to produce your widgets and what you think others would be willing to pay for them. Bear in mind the possibility that others may not place the same value in your pet project as you do.
Ask yourself ” is this something that other people need?” or better yet,” Is this something that other people want?”. People are often more motivated to by what they want and hold off on what they may need.
- How long will it be before I start realizing a profit?
You must certainly consider the length of time from the date that your widgets go into production to the day the money actually starts rolling in.
- Is the ROI fair compensation for my efforts (is it worth it)?
Think about all the work involved in producing your product,the headaches, the endless days, the frustrations you’ve endured. Have you just bought yourself another J.O.B.?
- Does this particular home business opportunity provide a residual income (are my efforts multiplied over time)?
You most definitely don’t want to end up working your fingers to the bone forever and end up like the song says with ” bony fingers, bony fingers”. So this leaves us with the following alternative, the third crucial point.
Many people believe that this is definitely the most important point for you to consider if you’re planning to work from home. In any business duplication should be a major consideration if it is going to provide ever increasing revenue and growth.
If you intend to rely solely on the fruits of your personal labor to provide you with financial freedom and afford you the lifestyle to which you would like to become accustomed, I’m here to tell you DON’T EVEN THINK ABOUT IT! You MUST be able to leverage the time of others to attain your dream. So this raises a new set of questions.
- How will I duplicate my efforts if I’m working from home?
Now the average home owner isn’t real keen on having a house full of bodies falling all over each other even if they are there to help. Once in awhile it’s tolerable but day in and day out? You had better have nerves of steel!
- Does this require skills that are easy to learn?
Hopefully the process of manufacturing your widgets is a simple one and won’t require a lot of time and effort to teach others how to do it.
- How many people will I be able to work with effectively?
Here again, if it’s not to difficult to fabricate you should have no problem handling however many people you need to get the job done. The main obstacle may be how to balance your time between training and doing the other important tasks you are faced with like marketing the goods.
- What will I offer by way of training for my helpers?
Track down any training aids might facilitate the training process and perhaps shorten the learning curve. It’s a good idea to focus on training a few leaders who will then be able to teach the others and take the yoke off of your shoulders.
You’re probably thinking that marketing has to be the most important point to consider when looking seriously at any new home based business opportunities. Indeed, no business can be successful without a killer marketing system. The obvious questions here are:
- How am I going to market this puppy effectively?
Hopefully you had the. foresight to include a substantial marketing budget. This could very easily turn out to be a major expenditure. Good advertising that sends hoards of hungry prospects to your door does not come cheaply.
- Will I use online or offline strategies or both?
It is a good idea to utilize every means at your disposal to reach as many people as you possibly can with your message. It is ultimately a numbers game. The more people you get your product in front of, the more you’re going to sell. Effective marketing requires a little knowledge of what it takes to push people’s “Buy Buttons”. A good deal of research has gone into developing marketing systems that work consistently.
- What marketing tools, if any, are included with the business?
Sadly, with regards to marketing tools you are pretty much on your own where your widget business is concerned. Whatever you can come up with to encourage people to take a look at what you have to offer is going to work in your favor in the long run.
My mantra for you is RESEARCH, RESEARCH, RESEARCH. Learn all you can and then test your techniques and keep the ones that are productive and discard those that aren’t.
- Does this business come with a Proven Marketing System?
The only way you will get a business with a proven marketing system is if you partner with a company that is already in existence. You could become an affiliate of this company and sell the products they produce in return for a commission.
This is is called affiliate marketing and many people have made six figure incomes doing just that. Many of these companies make all the tools and training available to you. the best of the best have a number of different marketing systems already in place. All you have to do is “plug in” to a proven system, apply the time-tested marketing methods and keep promoting. If you really want to make the big bucks you’ll have to show others the benefits of being in this business so they will partner with you and join your down line.
You will then receive commissions on what sales they make and the sales of those who joined in their down lines etc.. This is where the term MLM came into being. Multi-level Marketing.
Paying attention to these 4 crucial points will give you a running start at owning and operating a successful home based business. In truth, they are all equally important when it comes to picking the right business for you. If you are looking for something that is easy to get started in on a shoestring budget then affiliate marketing is for you. There is one caveat to be aware of
All MLM opportunities are not equal and there are those that only the most motivated and magnetic people ever succeed with. So I will leave you with this thought.
If you decide to take a serious look at affiliate marketing, take a very close look at the company and their products. Does this company have anything that will make them stand out? Something that will give you an edge in the marketplace or is it the same old widget that everyone else is offering
with a prettier label. It is of the utmost importance that you go over the compensation plan with a fine toothed comb. Determine if the payment schedule with bonuses included is one that will let you eventually attain financial freedom. Pay close attention to what requirements you must meet in order to qualify for the bonuses. Often the requirements are so stringent that only the exceptional marketers ever qualify to receive them.
Don’t let the caveat frighten you off though, there really are companies that compensate their affiliates amply, and there are those once-in-a-lifetime products that come along, well, once in a lifetime (maybe twice). It is your job to recognize them when they appear and to seize the moment being in the right place at the right time to catapult yourself into a new lifestyle. The one you’ve been dreaming of.