You have a great idea for a home business. You are spending considerable time thinking about the future of your business and can’t wait to get started. But how do you start a home business that’s bound for success?
In this blog post, I’m going to share with you the strategies for success in home business. They are proven to work, easy to implement, and are tailor-fitted for the home business setting. These can help you make your home-based business a success.
Strategies For Success in Home Business
Here they are…
1. Involve Your Family in Planning
A home business is usually run out of the family’s home, so include your family in the business at the very beginning.
If you’re still single and living with parents, they can help you by providing you a separate are in the house that’s just for your business. Also, your parents can do some minor work for your business.
If you have younger siblings, they can help you by taking on more chores, or by helping you in some tasks in your business.
For parents operating a home business, you can ask the young ones to be quiet when Mommy or Daddy is on a business call.
You can use your family as your first focus group to discuss your product or service. Ask them questions like, would they buy the product? How would they improve the product?
Get your entire family involved and excited about your business, their love and support will make your life easier.
2. Set Aside A Certain Space Just For Your Business
If you’re serious about success in home business, you should dedicate a certain space for the business, even if your house is small. You need a place that’s set aside to keep all your documents organized, and for the products you’re working on.
You need a place that will serve as a mini-warehouse to store the products made before sale (inventory), and another place to store the things needed for making your product, like your ingredients or raw materials.
The point is, you must have a dedicated space to keep all the materials related to your business in one place and not spread throughout the house where they can be misplaced or lost.
Some of the most successful businesses you see today were once home-based businesses. They were run from a garage, from a bedroom, from a basement, or from an extra bedroom in the house.
If your business isn’t involved in making physical products, like if you’re an affiliate marketer, having a dedicated office space would allow you to fully concentrate in your work. It will reduce the level of distraction you’ll get from interference.
3. Get All The Preliminary Tasks Done Before Opening
Every business, even one that’s home-based, must do some preliminary work before opening the business. This includes registering your business with the government, getting financial accounts set up like bank accounts, and getting suppliers.
In modern businesses, a computer set is necessary. The setup includes desktop computer, a fax or dedicated phone line, and a printer. And another essential part of your business are your business cards or calling cards. Have them printed out before you operate the business.
If you’re producing a product, make sure all the equipment that you need like your cooking pans, are in place.
Make sure all these preliminary tasks are completed before you open your business. Nothing is as great as seeing your business hit the ground on your first day of being a business owner.
4. Keep Expenses Low To Start
You probably cannot start a home business on a dime, but you can pinch pennies on start-up costs. Be careful on how much you spend.
- Rule #1: Never lose money.
- Rule #2: Don’t forget Rule #1.
- Rule #3: Don’t forget Rule #1 & #2.
To keep your expenses low in the beginning, make a list of what you really need to start your business. Then, go over that list and prioritize the most important things needed.
See if you can get by smaller quantities, postpone a less priority purchase, or use something you already have on hand.
By keeping your start-up expenses low, your business will be more profitable especially if your products are good and you’re making sales.
There’s nothing uglier than a paralyzed business that ran out of cash due to unnecessary spending.
5. Know What You Are Selling
You need to know everything about the product or service you’re offering.
If you’re making a physical product like cosmetics, you should be familiar with everything that goes into your product. This includes components and ingredients, know exactly how it is made, how long it takes to produce, etc.
This is your business, and you will be looked at as the expert, so make sure that you have the answers or know where to find them.
In sales, we are encouraged to focus on the benefits of the products and less on the features or ingredients. But as the owner or developer, this time, you need to learn all of them.
Know everything about your product.
6. Treat All Customers With Respect
Be kind to your customers even if they behave in a way you don’t like. Often a calm voice and a kind word can do more to get you a sale than a sales pitch.
Answer your customers’ questions, offer assistance, and be ready to give a refund in case your product fails.
There are times that you are the one having a bad day, try as much as possible to conceal it and serve your customers well. Remember, it takes a long time to win a customer’s loyalty but it only takes a few minutes to instantly ruin it.
Treat all your customers with respect, even when they don’t buy anything.
Along with treating your customers with respect, make sure you set a fair price for your product or service. This means, they are getting value from your product that’s equivalent to the price they’re paying. Or, if you can over-deliver in value, do it.
If you set your prices too high, you might scare off good customers. Similarly, if you set your price too low, it might send a wrong message to your customers that your products are inferior.
For a win-win solution, if you’re making your own product, the price must cover the cost of production, plus a small profit. Don’t be bothered by small profits, the bigger profits will come as your business succeeds.
If you’re reselling or marketing something that you did not produce, it is best to follow the suggested retail price.
8. Know Your Competition
A good way to determine how much should be your product is priced, is by spying on your competition. Look at how much other businesses, those businesses that produce product similar to yours, are selling theirs.
Be innovative by looking at your competition’s products and seeing if you can add value to your product so it would make a difference.
You can do great with your business by focusing on your own, but the smart entrepreneur knows that spying on competition is an integral part of the business.
Watching the competition is something you should do for the life of your business.
9. Adapt To Changes
In this modern world, change is constant. Life has a way of throwing changes at everyone, even those who operates a home-based business.
The winning entrepreneur knows how to adapt to changes.
When you’re starting out, you are encouraged to be comfortable with small profits. But as time goes by, you may need to learn how to increase your profits but substituting ingredients, changing suppliers, and making tweaks in your product that will increase your profit.
You may need to change market, sometimes.
Also, there are times when the business didn’t go off as expected, so you will need to take a part-time job to subsidize your new business financially.
Be like water and flow downstream with flexibility.
Then, last but not the least…
Customers love to be with winners. If they sense you’re losing, chances are they might get repelled off.
So, keep smiling and stay enthusiastic, no matter what. Do not let your customers hear you complaining about lazy suppliers, high expenses, or myriads of other business problems.
You may want your customers to associate your product or your business with something happy, not gloomy.
Remember, positivism attract good things. So, if you want good things to keep coming to your business, stay positive. Have a positive attitude.
There are no magic tricks for building a successful home business. You need discipline and hard work, and of course, guided by these strategies for success in home business.
You have it now, the 10 simple strategies for success in home business. I believe there are more out there, but for the sake of simplicity, we just shared here ten (10).
Follow these strategies, work hard in your business, keep eye on numbers (stay profitable), and you’ll be on your way to building a thriving business from home.
Gomer Magtibay a.k.a. Coach Gom blogs about home business ideas and answers questions (free coaching) about starting or growing a home-based business. If you would like to learn more about him or connect with him, click here.