5 Factors for Starting a Small Business from Home
If you are considering setting up your own home business or are restructuring a home business you already have, these are the 5 Most Important Factors For Starting A Successful Home Business.
1. Financing
One of the most important determining factors when starting your business is financing. If you cannot get the money you need you will have a hard time getting off the ground. When you are trying to secure financing or decide if the investment is worth the risk the most critical decision making piece is the business plan. Look at more than just the initial investment but also monthly costs compared to income to keep business operating. A business plan includes details such as daily action plans, marketing tactics, measurable accountability goals and long term objectives. Many of todays opportunities, such as network marketing, have this laid out for you already making it easier to achieve your goals. It you find yourself questioning the investment ask yourself a few simple questions. Can I commit to the plan 100%? Is this something I want to do long term? Do I have a peer or partner that has had success to guide me? If I follow the plan will I have success?
2. Fast Revenue Growth
Success is all about creating momentum. Focus on growing your revenue immediately after getting started. If you can get things moving right away you will earn your investment back much quicker. If you procrastinate and take your time, it will not be long before you run out of steam. In today’s economy it is so important to be able to immediately create revenue and a return on your investment. How quickly in your business plan can you get a return on your investment? Will the revenue you are creating cover your monthly business expenses? Have your plan in place and start to execute this the moment you start your business. Quicker income for you and anyone starting business with you means longer partnerships and more residuals.
3. Taxes
As a Home Business owner you will be responsible for your taxes and withholdings. More importantly keeping detailed records so you are able to report this correctly on your taxes. Having your own business can be very advantageous however it is important to be very specific and detailed. As an independent contractor you pay all your business-related expenses. You can claim some of those expenses on your taxes. To claim an expense, it must be reasonable and necessary for the success of your business. This includes expenses spent on your website, purchasing products, demo product value, office supplies, office equipment, business cards and advertising. If you have an office devoted solely to your business, gather receipts reflecting office expenses, such as rent and utilities. Calculate the total miles driven on your vehicle for your business. This includes mileage used soliciting orders, delivering products, throwing parties, recruiting and attending conventions. Complete Internal Revenue Service (IRS) Form 1040. On the 1040, you have the option of taking the standard deduction. If your business expenditures exceed the standard deduction, choose to itemize deductions. (Blah blah blah, I know taxes are boring but still important so thanks for staying awake through that.)
4. Treat It As A Business
When you are starting a home-based business, it is imperative that you treat it as a legitimate business. If you treat it as though it were a side project or something that is not important, you are not going to be able to have success with it. You need to set a specific schedule for working and stick to it. If you treat it as a job and a successful business, you are going to be much more likely to become successful. This is your investment for your future. If you are not willing to commit I would advise taking that investment and choosing a Hobby instead. Business makes money and hobbies cost money, however if you treat your business like a hobby it will cost you to.
5. Be a Product Of Your Product
Seems simple enough yet this is one of the things I see so many miss. Once you choose your product or company you represent it is imperative you become a product of your product. People will buy from you because they trust and like you. This trust will be very hard to earn if you are not reflecting 100% belief in what you are selling and promoting. This doesn’t mean that if you are going to sell a skin product you must have perfect skin but you do need to have your own personal story of what changed for you in using this product and why you believe everyone should be using it. You need to have a story about why you personally believe in the product and why you want to help your prospect do the same. If you don’t have passion and reason for what you are doing it will be very hard to create that in your prospects.
What tips do you have to share for launching your home business? Share them in the comments section!
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