According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home-based businesses in the United States alone. The Home-based Business Institute estimates that about 70% of home-based businesses will last over a 3 year period compared to 29% of other business ventures. Home-based business is a $427 billion a year industry as estimated by Entrepreneur Magazine.
Nowadays, more and more people are working from home. They do some or all of their work at home. Many people find that working at home is the “ideal working arrangement” and decide to formally set up businesses in their homes.
People are striking out and achieving economic independence by turning their skills and interests into dollars. With the technological advancement of the internet, the opportunities seem to be endless.
Getting Started
Before getting started, it is essential to know why you are doing it. To be successful, you have to know the reason(s), and it should be more than just a desire to be your own boss. It is also important for you to understand what this home-based venture involves.
Ask yourself these questions:
- Can I work under the same roof that my family lives in?
- Am I self-motivated to work on my own?
- Am I a self-starter?
- Can I deal with the isolation of working on my own from home?
- Do I have the self-discipline to maintain schedules?
- Can I easily switch from home responsibilities to serious business work?
Finding Your Niche
Choosing a home business is a very important decision. You must make your decision with great care and concern for the future.
Before you invest your time and money, first ask yourself these questions:
- Do you have what it takes to run a business successfully from home?
- Do you have the talents and skills needed to compete successfully?
- Can you identify and describe the business you plan on establishing?
- Is there a demand for your service or product?
- Can you successfully market your service or product?
- What advantages do you have over your competitors?
- Does your home have a space for a business?
- Does your family support your business goals/vision?
Legal Requirements
A home-based business is subject to the same laws and regulations affecting other businesses. Here are some of the general areas to watch out for:
- Be aware of your city’s zoning regulations. If your business operates in violation of them, you could be fined or asked to close down.
- Certain products cannot be produced in the home. Most states outlaw the home production of fireworks, poisons, explosives, drugs, sanitary or medical products and toys. Some states also prohibit home-based businesses from making food, drink or clothing.
In addition, there are registration and accounting requirements to consider:
- Your business name may need to be registered with the state.
- Your business may need an A.C.N and A.B.N and business tax file number.
- You may need to obtain a work certificate or licence from the state.
- You may need to register with some of the tax requirements.
- A separate business telephone and bank account normally are required.
- If you have employees, then you need to comply with minimum wage and employee health and safety laws.
Once you have thought about the pros and cons of a home-based business, it is time to start working on your business plan.
Feel free to use this article in your blog or website or you can even email it to friends BUT with this link intact http://smlbusiness.blogspot.com
Tuesday, April 29, 2008
Monday, April 28, 2008
Clever Marketing
You will not be successful in your new business venture just because you want it to succeed. Clever marketing will bring customers to your door. It alerts people that your business is there and gives them reasons to choose your product or service over those of your competitors, or over not buying at all.
Determining if there is a market for your product or service is the most important item of planning. Once you decide on your product or service, you must start analyzing your market—a process that involves interviewing your competitors, suppliers and customers. Before you start researching your market, you should ask yourself the following questions:
- Is there a constant demand for this product or service?
- How many competitors are there providing the same service or product?
- How can I best adapt my product or service to the market I want and promoting it so it appeals to the market?
- What are my competitive advantage?
- Can I compete effectively in price, quality and delivery?
- Can I price my product or service to give me the projected profit?
Once you are satisfied with your answers to these questions, start working on your market research. Conducting a research on the market you intend to penetrate will prepare you to target real and potential customers or prospects. It will also tell you whether your product or service appeals to your target market. Without market research, you will never know how your product or service is likely to be accepted by your target market. Furthermore, you will waste your time and money advertising to the wrong group of people.
Market Research
- Ascertain whether a product should be produced (if you are a manufacturer) or stocked (if you are a retailer).
- Ascertain whether there is a gap in the market for your product or service
- Tells you what consumers think about your competitors’ products or services.
- Tells you what consumers think about your own product or service.
- Shows alternative approaches to your market.
- Provides a more accurate profile of your marketplace and your best target consumers.
- Provides a more accurate base for making profit assumptions.
- Assists in the development of short-term and long-term business goals.
Questions To Ask
In order to gain more specific information concerning your market, you will need to make up a questionnaire to be filled in by your existing customers and your potential customers.
Your research should ask these questions:
- Who are your real and potential customers or prospects?
- Where are they located?
- What are their needs and resources?
- Is there a day to day demand for your product or service?
- Does your product or service appeals to your target market?
- Is there a gap in the market for your product or service?
- Can the customer afford your service or product?
- What does consumers think about your competitors’ product or service?
- What does consumers think about your own product or service?
- What areas within your market are declining or growing?
- What is the general economy of your service or product area?
Market Data
Knowing your market not only requires an understanding of your product and service, but also an understanding of your customers' socio-economic conditions. Your market data will serve as a map in guiding you and letting you know what is ahead so that you will be well equipped. It is important to have a great product or service before launching into an advertising campaign. You will run yourself out of business if you give misleading information and false promises. An inadequate market research can have costly ramifications for your business.
More market information can be found in:
- Government publications
- Customer surveys in your market area
- Library listings of trade associations and journals
- Banks, Realtors and Insurance Companies
- Competitors
- Regional planning organisations’ studies on growth trends
- State Economic Development Agencies
- Chambers of Commerce
- Local Colleges
Summary
A business owner must know the market in order to be successful. Strategic marketing should play a leading role in your business venture. Market research is simply an orderly and objective way of learning about your real and potential customers. Every aspect of your marketing should be built around convincing your real and potential customers that you offer more than your competitors.
You can use this article in your blog or website or email it to friends BUT with this link intact http://smlbusiness.blogspot.com
Determining if there is a market for your product or service is the most important item of planning. Once you decide on your product or service, you must start analyzing your market—a process that involves interviewing your competitors, suppliers and customers. Before you start researching your market, you should ask yourself the following questions:
- Is there a constant demand for this product or service?
- How many competitors are there providing the same service or product?
- How can I best adapt my product or service to the market I want and promoting it so it appeals to the market?
- What are my competitive advantage?
- Can I compete effectively in price, quality and delivery?
- Can I price my product or service to give me the projected profit?
Once you are satisfied with your answers to these questions, start working on your market research. Conducting a research on the market you intend to penetrate will prepare you to target real and potential customers or prospects. It will also tell you whether your product or service appeals to your target market. Without market research, you will never know how your product or service is likely to be accepted by your target market. Furthermore, you will waste your time and money advertising to the wrong group of people.
Market Research
- Ascertain whether a product should be produced (if you are a manufacturer) or stocked (if you are a retailer).
- Ascertain whether there is a gap in the market for your product or service
- Tells you what consumers think about your competitors’ products or services.
- Tells you what consumers think about your own product or service.
- Shows alternative approaches to your market.
- Provides a more accurate profile of your marketplace and your best target consumers.
- Provides a more accurate base for making profit assumptions.
- Assists in the development of short-term and long-term business goals.
Questions To Ask
In order to gain more specific information concerning your market, you will need to make up a questionnaire to be filled in by your existing customers and your potential customers.
Your research should ask these questions:
- Who are your real and potential customers or prospects?
- Where are they located?
- What are their needs and resources?
- Is there a day to day demand for your product or service?
- Does your product or service appeals to your target market?
- Is there a gap in the market for your product or service?
- Can the customer afford your service or product?
- What does consumers think about your competitors’ product or service?
- What does consumers think about your own product or service?
- What areas within your market are declining or growing?
- What is the general economy of your service or product area?
Market Data
Knowing your market not only requires an understanding of your product and service, but also an understanding of your customers' socio-economic conditions. Your market data will serve as a map in guiding you and letting you know what is ahead so that you will be well equipped. It is important to have a great product or service before launching into an advertising campaign. You will run yourself out of business if you give misleading information and false promises. An inadequate market research can have costly ramifications for your business.
More market information can be found in:
- Government publications
- Customer surveys in your market area
- Library listings of trade associations and journals
- Banks, Realtors and Insurance Companies
- Competitors
- Regional planning organisations’ studies on growth trends
- State Economic Development Agencies
- Chambers of Commerce
- Local Colleges
Summary
A business owner must know the market in order to be successful. Strategic marketing should play a leading role in your business venture. Market research is simply an orderly and objective way of learning about your real and potential customers. Every aspect of your marketing should be built around convincing your real and potential customers that you offer more than your competitors.
You can use this article in your blog or website or email it to friends BUT with this link intact http://smlbusiness.blogspot.com
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