So you want to be an entrepreneur? Who does not? It's an enticing offer and each year thousands of people start down the road of owning and running their own small business. In the wonderful world of communication that we now live in, a home-based business is a very real and very enticing possibility. Who does not want to be their own boss and get to hold the bag of profit? But running a personal business can be difficult and many fail because intricate business details and personal pitfalls were never counted into the equation.
Plan Ahead
Many businesses fail because the person in charge forgets to plan ahead for expenses, problems or unforeseen costs. Thousands of people have great ideas for businesses but few can make it because there is not a detailed plan in place.
- Stockpile money. A business is going to need a nest egg because supplies, advertising and other start up costs will arise. A profit will likely not be turned right away therefore having money to keep the business afloat until a profit is made is essential.
- Create three goals for the year and keep those goals in sight. Make sure they are reasonable and have a plan to meet the goals that have been set. Thinking too big for the first year can lead people to become discouraged. Think realistically, set goals and then plan to meet those goals.
- Remove a portion of profit and put it away. Taxes are going to eventually be taken out. For those who work for a company taxes are already removed but small businesses will need to consider the taxes they will be asked to pay at the end of the year. 20% of all profits is a good starting point.
- Know who potential clients are. This can not be stressed enough. A business must be aware of what type of person would be interested in their product or service. Knowing the client base helps in forecasting the best means of advertising. New businesses want the best “bang for their buck” and knowing who the advertise to is an important part in using advertising budgets wisely.
Promote Yourself
No business can succeed without customers or clients therefore advertising and promoting the business is key to making a profit. While a small business does not need, nor can it afford a national campaign, there are plenty of ways to promote oneself while keeping a budget in check.
- Make a website. For a small fee each month any business can host a website that describes the business, provides potential customers with contact information and gives out a general pricing plan. Home-based merchants who are providing products can create a virtual storefront with relative ease that allows customers around the country or world to shop with them. Freelancers who are providing a service can create a website that showcases not only their services but their talents and samples of previous work.
- Take out an ad in a local paper. College newspapers are a good place to start. The ads are relatively cheap but still reach a large audience. If the business' demographic is teens or young adults, a college newspaper is a good place to start. For example a private tutor would be wise to advertise in a college paper or on a college campus. For a business that is directed more towards a professional crowd a larger local paper would be best.
- Create business cards and ask to leave a stack in varying businesses and locations. Keep a few with you at all times, you never know when you will meet a potential client.
- Keep clients happy. If a business can keep your clients happy they will tell others about the business and the products/services. Word of mouth is free and all it takes is effort on the businesses part to keep clients satisfied.
Keep it Organized
Being the boss seems like a great idea, but there are responsibilities that a business owner has that can be less than fun. In order to succeed a business must have a set schedule, be organized and use its resources wisely.
- Set a schedule and stick to it. While working from home or working alone leaves room for flexibility, a set schedule is necessary to ensure productivity. People can find themselves either working constantly because they are unable to differentiate between personal time and business time or not working enough because home distractions pull them away from their budding business. Treat it like you would any office job. Show up for the job at a certain time and shut it down at a certain time.
- Don't let work areas become overrun. At the start of the day lay out the necessary supplies and put them away when the work day is over. This will ensure that the necessary supplies are on hand but the area does not become disorganized or out of hand.
- Set out an organization plan and stick to it. Say a business has 100 clients. That information should be on hand at all times. Create a file for each client that tracks the work that has been completed, the work that needs to be completed and the payment that has been sent and what is still pending. Keeping track can help a business maintain a sense of order and avoid clients, projects and payments from falling through the cracks.
