4 Components for Successful Home-Based Businesses
by A. Montalbano on 12/08/13
More than half of all U.S. businesses are based out of an owners home. Much of today's home-based business opportunities have launched in great numbers due to sophisticated software-program availability. Another factor is the American economy's transformation from a product-based industry to a service-based industry. Home-based ventures have served a greater purpose for those caught in corporate downsizing or even for those with a need to stay at home. Growing a company from the home offers flexibility, cuts driving costs, allows you to test out business ideas, and over-head is relatively low.
Two out of three major corporations today began out of a garage, a kitchen, even a basement: Apple Corporation (garage); Martha Stewart (kitchen); Amazon (garage). Although the office is primary out of the home, there are service businesses such as interior design and hot-shot delivery where the bulk of service is managed outside the home.
Most start-up cost is less than $5000 and 60% capital source comes from a savings account. Successful start-up adjust their target market by establishing a niche. Don't try to be all things to all people. Narrow down your market by demographic or geographic.
A start-up home-based business is usually managed under a sole proprietorship. Many services offered to home-based are in business for the success of home-based businesses. These key components are must-haves for successful growth:
1. Management skills. An important must-have in operating a business, is not the product or service, but hands-on control of daily operations. Unlike a corporation with various department heads, a sole proprietor will manage single-handedly. Management courses are offered at local colleges online or in a classroom setting and some credits can be earned as few as 6 weeks.
2. Vision and Attitude. Planning is a large portion of management know-how and requires self-discipline, a maturity level, strong motivation, optimism and perseverance. The demands of business can increase the stress level. Prepare a stress-relief program such as a regular work-out routine, yoga, or motivation sessions helps keep you on track and lessen the stress.
3. Marketing. Knowing your product or service inside and out is key for effective marketing. But offering your expertise to deliver your message through your website, newsletter campaign, networking, and social media are major components for trendy marketing techniques.
4. Partners. Being a sole proprietor doesn't mean going at it alone. This component is by far the most valuable as associates offer expert advice and services to keep you in business: attorney (law advice), a book-keeper or accountant(financial/tax record keeping), an insurance specialist (risk exposure coverage), computer tech (computer/software), staffer (future employee needs) and a handy home repair tech(home office issues).
These top 10 start-up ideas have proven successful in 2013 (allbusiness.com; Entrepreneur.com):
2013 Success
- Personal trainer.
- Yoga instructor.
- Medical transcription.
- Tutor.
- Bakery.
- Wedding planner.
- Cleaning service.
- Dog walking.
- Home inspection.
- Photography.
The 2014 outlook for trend-setting ideas are in motion:
- Free-lance writer.
- Flipping (houses or cars).
- Blogger.
- Services for pets.
- Services for seniors.
- After-hours child care.
- Admin services for small business.
- Home improvement.
- Junk Disposal.
- E-Marketer.
