Friday, February 15, 2013

Planning Your Home Business



Starting up your home business takes a lot of planning and midnight oil burning perhaps more than it would take to run the business. For one, you take to home business because of budgetary constraints or you are undecided or unsure about its prospects. The underlying reason, however, is yours is a profession that doesn’t call for a separate office much like attorneys or CPAs.

But decision making process in itself is the beginning of planning your business. There are things of importance to consider after having decided about the line of business.

Points to Consider
Let us see some critical points you need to consider.
1.    Where exactly will you have the office in your home? If you are expecting to meet clients regularly, you can’t possibly makeover your bedroom into office. You will be better off dedicating a room preferably with a separate entrance. Depending on your business for example, beauty or healthcare, office may need to have privacy and toilet attached.
2.    Defining your business is perhaps more crucial than all. Define points like who the customer and competitors are, what are your strengths & weaknesses, what the growth plans are etc. Be pragmatic in your analysis.
3.    Define your goals for both short term and long term. Explain clearly how you are going to provide different values to your clients than competitors. This answers why customers should prefer you over competitors.
4.    Study the context of your business and pick up lessons from other peoples mistakes to avoid yourself doing costly mistakes. In addition learn about plusses and minuses of your competitors too. This prevents longer learning curve.
5.    Know the customers more with respect to their unmet needs, growls about their earlier providers (your competitors,) their perceptions of quality, pricing and their problems etc. Find out ways to solve their after sales problems.
6.    Financials score next in the line. Draw down investment, monthly recurring overheads, cash-flow chart, sales projection, book-keeping, break-even chart, which are crucial for filing returns and keeping checks on the progress.
7.    No doubt you have started the business with conviction about market potential. But define all aspects clearly so that nothing is left to ambiguity. Identify target markets for immediate, later and future conversions; develop tools and strategies for capturing the market. Check whether test marketing applies to you.


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