Two Different Ways to Start a Profitable Home Business

February 6, 2010 · Posted in Advantages, Capital, Financial Backup, Focus on Profit 

Economic times have dramatically changed and we all potentially face a long and difficult time. It’s becoming increasingly difficult to make ends meet with just one source of income. The possibilities of starting a home-based business look very inviting. The probabilities of a making a home business work include many factors such as keeping busy, having fun, improving self image, and enjoying a very profitable part-time cash flow.

Your home-based business choices are numerous, even endless if you apply creative thinking. But let me suggest some logical thinking about a home-based business based on two categories. Each category requires three steps so they are logically simple to compare and contrast.

Category A: You apply your own labor, capital, expertise; work your own hours, and earn net profits after gross expenses…production, research, advertising, employees, accounting, etc.
Category B: You plug into a large successful company, help to market their products, work with a like-minded team, and earn multiple multi-level commissions.

Let’s look first at Category A.
There are definitely many opportunities to work at home. You can start a home-based service. If you have a truck, you can start a clean-up/hauling business. You can start a home /apartment cleaning service. By meeting supervisory guidelines you can start a daycare facility or hair/esthetics salon. If you have a yard full of flowers, you can supply fresh flowers to restaurants or offices in your area. You can turn a ceramics hobby into a personalized coffee mug business. If you like crafts, you can design miniature painting fridge magnets and slogans. Local bazaars abound with home based initiatives.

There are some basic steps to get started:
FIRST STEP
a) Do basic market research…define your customers who would buy from you
b) Itemize the details of your business plan…Examples: show your start up investment needs, advertising plan, production costs, your sales program and how your time will be allocated.
c) Make sure costs are within your abilities and time commitments are manageable
d) Make sure you lay it all out on paper before you get involved. The clearer you can “see” everything before you start, the better your chances for success.
SECOND STEP
Set your plan in motion. Keep close tabs on accounting…payables and receivables
Monitor your time.
THIRD STEP
The most important factor in building a profitable home business, after expenditures of capital and time, is to sustain your business for the first SIX months. Specifically, you shouldn’t count on receiving money or spending money coming from your business during those first six months. It is recommended that all the income from your business during those first six months should be reinvested in your business in order for it to grow and reach your first year potential. Once you’ve passed the first six month milestone, you can set up a small monthly salary
Hopefully, after one year, if you have your business plan organized and have implemented the plan, you should be able to watch your enterprise grow and prosper. Eventually, you may even hire people to do the work for you while you vacation in the Bahamas and collect regular income from your initial efforts.

This is a TALL ORDER even for the most ambitious and motivated. Even statistics aren’t all that promising with so many small businesses taking their toll on both money and “sweat” equity 24/7 and still failing in their first three to five years.

So what is the alternative second category of starting a profitable home business?

FIRST STEP:
a) Plug into a large successful company as an associate or independent distributor for a nominal fee. Do your due diligence and make sure the corporate team consists of top respected business managers in their fields.
b) Make sure the manufactured product is one-of-a-kind, state-of-the-art product that you would be proud to represent. Check out the research credibility.
c) Make sure the company handles your accounting (paying your checks in a timely manner), marketing tools, shipping, back office organization and communication. In other words, the management does the “heavy lifting” for you as they build their company, often worldwide in scope. Excellent companies will return 50% or more of their sales revenues to their distributors. So, how do you earn your share of money as their bottom line market shares increase and profits soar?

SECOND STEP:
a) Your job is to help market the company’s product(s).
b) Make sure you are an integral part of a strong MARKETING TEAM who will help you with questions, contacts, training and team-building.
c) Make sure your MARKETING PLAN is simple enough so that anyone can do it
effectively without loss of critical information. Check to make sure you know how to use these three essential keys: a phone number with an expert overview, a corporate website, and a 3-step marketing plan that addresses changes, choices and actions.
Always remember you are the messenger of a valuable message of home business success. You have harnessed the Information Economy and Technology and moved beyond the limitations of a 40 hour work week by leveraging information tools.

THIRD: In return, you receive handsome commissions that are multi-level and residual in nature for long term income.

In conclusion, your decision for a profitable home based business is a serious process involving education, research, co-operation, physical assets, mental mindsets and self-empowerment to live your life on your terms. Building a personal economy that you can control in the middle of an economic climate you cannot, seems a safe and logical thing to do.

AnneMarie Berukoff is an entrepreneur and teacher who enjoys early retirement following a 24 year career. She is a professional network marketer for the past 5 years who has worked with some of the top income earners building and training her own successful downlines. Her team’s experience showed the need for a simple but comprehensive overview of the industry and what makes it work best. A Mini-Program for Maxi-Profits…slides and e- book http://www.howtoincreasehomebusinessprofits.com

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