Starting a Home Based Business from Scratch
Over 50,000 businesses are started each month, and a good chunk of them are home based businesses. And it’s a good chance that at least half of those home based businesses are started from scratch – without anyone to guide them, blue prints to follow, or designs to try. And it’s probably a good bet that you’re interested in doing the same thing.
Well, let’s start at the beginning; you’re going to need luck. Yes, I’m not going to sugar coat it, and tell you anyone can own their own successful home business, because it’s simply not right for everyone. You’re going to need a little bit of money, a good plan, good people, and a few bucketfuls of luck – plus a truckload of patients, motivation, and determination.
Having said that… it is possible to run a very successful home business! You can fulfill your dreams with a home office, a computer, and those few buckets of luck.
Do you think have what it takes?
The first steps, and things to remember, when starting a home based business are essential to ever ‘hitting the big time’. A few of the long list of things you’ll need are below.
The First Step; The Decision
The very first step you need to take is choosing what business you want. Before you start asking for loans from friends, offices, and your local church, you need to be completely and utterly clear on exactly what you’re going to be doing.
A muddled frame of mine is the reason that many businesses fail. If you don’t know what you’re doing, how you’re doing it, and why it’s going to work, you need more time.
Doing the Research
Have you decided what you’re doing? Or at least have a vague idea of the business you want to start, and what you’re going to need to get there?
The very next step is to do your research. You can’t jump into this blind, without a thought of who’s going to buying from you, or what’s going to be happening. Research the market that your product or company is targeting. Are you selling crafts? Well, that’s a women’s market, probably a bit older crowd – learn your area before you try to market to it!
Check Your Credit
Okay, so you’re getting ready – and you want to start looking into loans. Unless you’re going to be able to pay for the company, its start up costs, and for the first two months of bills out of your savings, you’re going to need a few extra bucks.
Before you even consider it, check your credit report. What’s your score? The average scores for those who get a loan in the US is about 750 – just a hundred points shy of being ‘perfect’. If it’s below 600, expect to get less money for higher rates.
If you find your credit score to be a little too low for comfort, start cleaning it up. There are several ways to improve your credit, including simply paying off the debts that you owe and making payments on the big ones.
Names to Remember
The longest, most painful part of the process for many business owners is the name of the company. What to call their fledgling business, so full of life and ready to begin? You could name the business like you would a child, but ‘Madison Elizabeth Johnson Inc.’ or ‘Alex Michael Jr.’, but you have to wonder if clients will turn away from the oddness of the name alone.
Instead of doing something that will make your clients wonder about your sanity, try a simple, easy to remember name that evokes the feelings that your business wants. If you’re selling comfort items – candles, scents, etc – something warm, inviting, and sensual would work. However, if you’re doing consulting, something too warm or inviting make turn the customer off.
Make Sure you Have Enough Cash
Many times, because they is a lot less overhead than a traditional business, business owners will underestimate the amount it will take to start up. This can be very bad, because no matter what you have starting, if you can’t buy everything you need your business is going to be at a standstill.
When calculating how much you’re going to need, don’t underestimate. Think realistically, and if there are two numbers, go with the larger one. It would be easier to pay the first loan payment with money from a loan than end up with not enough money to pay any payments because your business is halted.
You can be successful; remember to plan, make details, and double check everything. Devote yourself to your business, stay motivated and working… and you never know. Something really great could happen!
Remember. No one ever said success was easy (And if they did, they were lying!).
