5 Important Steps When Starting A New Home Based Business

5 Important Steps When Starting A
New Home Based Business
By John C Kirk

This article is important for those people who are thinking of starting a Home Based Business and those who have recently made the decision to get started. You may be starting your business on a part time or fulltime basis. It doesn't really matter. Either way, you need to follow these 5 important steps. No matter what our level of experience, we need to be continually reviewing and revising our business plans. So here are the Five Steps we all need to consider when starting a business from home.

Step One: The Idea

• What sort of business do you want to start?
• Why did you choose this particular business?
• Will you buying into a franchise or will it be built from the ground floor up?
• How will it make you feel?
• Why will it make you feel that way?
• Are you sure that this is what you really want?
• Will you still feel as though it has been the right choice 2 years from now?
• What hours will you need to put in?
• Is it a 'seasonal' business?
• Does this business fit well with your values and your long term personal goals?
• Will it create the work/life balance that you desire?

Step Two: Research your Idea

• Is there a market for your product/service?
• Are there more people demanding your product or service than there are providing it?
• Have you surveyed your target market to see what they really want?
• Who is your 'ideal' customer/client?

Step Three: Workout the start up costs

• Will you need to renovate or add another room to your home?
• Will you need to buy a vehicle, a computer, furniture etc?
• What licences/accreditation/insurances will be required?
• Will you have employees?
• Will you hire Contractors?
• Will Outsourcing help to reduce costs?
• What are the hidden costs eg. rent, electricity, phone bill, vehicle costs, water, advertising etc?

Step Four: Write your Business Plan focusing on -

• Business structure (eg. Sole Trader, Partnership, Company),
• Your business name,
• What you want your business to do for you,
• Your Unique Selling Proposition,
• What price/s you will charge,
• How you will advertise/promote yourself,
• Where your customers will come from,
• When you expect to start making a profit,
• Your personal and financial goals.

Step Five: Keep Good Records

• Do you know what business records you need to keep?
• Do you know what cash books or Record Keeping software you may need?
• Do you know what tax deductions you can claim?
• Will you use an Accountant or a bookkeeper?
• Do you know where you can get free advice?

Summary

Until you have addressed these basics, you really can't be sure that you have a viable business. This does not mean that your business will fail. However, ignoring one or more of these steps reduces your chances of long term business success.

The author, John Kirk, is a Small Business Trainer, Mentor, Public Speaker and former Financial Advisor. John teaches Micro Business Management at Illawarra ITeC, one of the largest Training Organisations south of Sydney, Australia. In addition, he regularly conducts workshops and seminars focusing on cashflow, budgeting, marketing, networking and the business mindset for small business owners.

John is also an avid distance runner who has competed in numerous fun runs and over 25 half marathons and marathons since 2004.

Connect with John on Facebook at http://www.facebook.com/JohnKirkSBA

http://www.SmallBusinessAssistance.com.au

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Do You Have An Entrepreneur or Employee Mindset?

Do You Have An Entrepreneur or Employee Mindset?
By Sandy Armstrong

How does an entrepreneur think differently from an employee? Is it that they have an idea for a product or service that they wish to provide to the consumer base? IS it the fact they are willing to risk their own money to build that dream?

Knowing the answer will not turn someone into an entrepreneur. To become an entrepreneur you must understand and engage in "The Entrepreneurial Mindset".

At the turn of the century there were more entrepreneurs than employees. Business owners working their own businesses. Now the majority of adults are employees, working for an entrepreneur.

A shift in the economical structure reversed the situation. We went from a rural agricultural society to an urban based industrial society.

Combined with two world wars, mobilization through planes, trains, and automobiles, the "job" opportunities popped up like whack-a-moles at a carnival. It became more desirable to work for someone else than to take the risk of starting your own business. Where the failure rate is the same for online and brick and mortar. 95% fail!

So comes the era of "go to college", "learn a skill", work for 40+ hours a week, for 40 years, to live on 20%? of the income that you became accustomed to. Then you retire when you are 67+ years old. Maybe by then you are experiencing old age related issues. (Not that 67 is old, now-a-days it should be the new 50!)

It is just easier for people to work for someone else, knowing they will get that paycheck (plus benefits if you're lucky), every 2 weeks.

Think about this... That boss you report to everyday has the confidence in YOU to perform the job necessary to make the company you work for to make a profit.

WHY don't YOU have the confidence in yourself to make money for yourself?

Not so surprisingly, most employees surveyed are NOT happy in their J.O.B. They do it for the paycheck and benefits every 2 weeks. They have all the debts we all do and are on a budget, we've all been there.

It's just easier than to risk everything on your own dreams. It's easier to just wish and hope for more than to actually attempt to achieve it.

Entrepreneurs start out with the same fears and concerns as the employee, after all, they probably were employees first. They overcome that mindset by believing in themselves. They know they are the ones making that corporation they work for money! They know their own value, and they invest in themselves and do what it takes to show the world their value as a leader.

They no longer think like worker bees, they develop the characteristics to stand out in a crowd as an alpha.

They are ones who truly act outside the box. They know there is a better way and work to make that happen.

They are problem solvers.

They are innovative at their approach to bigger and better things.

Sadly, everyone is born this way, but it is stifled. In our learning years we are taught there is a right way and a wrong way to do everything. We are not allowed creativity in our informative years. Perhaps entrepreneurs never grow up. Perhaps we are all children at heart and have the confidence to pursue our dreams.

Thank god for entrepreneurs...

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