Home Based Businesses

Home Based Businesses

A Winning Blueprint

Volume 4: US Small Business Administration $uccess Symposium Series.

· Alan S. Gregerman, PhD

· Founder and President, Venture Works, Inc.

· Small Business Development Authority

(In the past 7 years he has helped 200 people transition to home-based businesses; 90% still successfully running their own home-based business.)

· Sarah Edwards

· Psychotherapist

· Author, "Working From Home"

· Home Office Consultant

(Been working from home for 20 years.)

Office - Consider what you need in a home office. A good set-up is essential. Use screens or partitions if you have a bigger room. Make sure what you need most is closest at hand.

Equipment - Computer, laser printer, copier, telephone, fax machine, software, 800 number, all for under $3000. Use the latest technology.

Telecommuting - 3,000,000 people do this as of 1991. Establish boundaries for your office.

5-System for your Home Business:

Set goals - be specific. "Within 3 months I'll be working 20 billable hours per week."

Turn goals into tasks - what do you need to do to reach your goals?

Set priorities - first things first.

Develop regular routines - saves time and energy.

Evaluate results - at least once per month do this, look for progress and meeting your goals.

Organizing Information:

· Create separate files (needed items and storage items)

· Regular time for admin tasks (bill paying, etc.)

· Computerize your files.

Self Management Muscle:

· Personalized work schedule - Do what's toughest when your freshest.

· Establish starting ritual

· Use daily planner - schedule work and personal time.

Magic time savers:

· Safe guard work distractions

· Say "no"

· Do 2 things at once

· Keep 5-minute task list that can be done anytime (fill-in activities)

Manage yourself:

· See people you enjoy.

· Take short walks to stay refreshed.

Making Contact:

· Breakfast/Lunch meetings

· Trade shows

· Workshops and seminars

· Electronic bulletin boards

· Set up joint projects with others

· Call someone...

How do get take seriously when you have a home-based business?

Create a wining image:

· Chose a name that gives you and your company a big sound. A strong name is important.

· Incorporate (Inc. sounds good after your name)

· Professional stationary (business card, logo)

· Big phone number (ends in 00 is good)

· Add suite number to your address, even your home address.

· Rent meeting space.

· Powerful self-image

· Be professional.

Marketing's Biggest mistake...

Assuming that just because you have a good product or service - people will buy!

90% of your business is marketing.

Successful companies are customer driven.

3- Steps to a winning product concept:

· Identify market need.

· Design product or service to meet the need.

· Create "plus value." Go the extra mile. Create the ideal customer experience.

Marketing strategies for home based businesses:

· Specialized niche.

· Build relationships from "gatekeepers." Key people.

· Build your reputation. The better you are at what you do, the better for you.

· Preeminent positioning - get a high profile through writing a book, teaching seminars, interviews, writing articles.

Non-stop networking:

· Everyone you meet could be a business opportunity.

· Seize opportunities with others. Share a cab. Ask them what they do, and then add in what you do.

· Plan to make 5 networking calls per week. Set up three meetings per week.

· Rolodex Theory - Contacts with other contacts: someone who can open a door.

· Thank you notes to those who helped you.

· Join professional, civic, charitable groups to meet people

· One-week follow up, no longer!

· Gotta meet your customers needs.

· The slick brochure is not your marketing centerpiece! It gets obsolete fast.

How do you decide if you should be in a business, and where do you start?

What is your desire to achieve? What is your motivation?

Life crises can be a motivator. Layoffs, etc.

Can you be excited about your product or service?

6 key elements to building a business:

· Business planning

· Product or service development

· Marketing and sales

· Operations or service delivery

· Administration and personnel

· Financial management (start up, production, finance growth - count on 6 months of no income)

Traits for Success:

· Flexible

· Well organized

· Good people skills

· Persistent (the will and endurance to succeed)

These traits can all be developed! These people are "made," not born.

Not having a plan is the reason 90% of home based businesses fail. Have a business plan!

Low cost start up:

· Moonlighting plan - your business is a sideline.

· Part-time - work a part time job in the meantime.

· Spin-off plan - turn your previous employer into your first customer

· Cushion plan - bank sufficient resources to last the first few months.

· Piggyback plan - Live off the salary of a working spouse while you build the home based business.

Bookkeeping:

· Establish separate banking accounts, and credit cards too.

· May want to establish a home equity credit line - check with your accountant.

· Set up account with delivery service.

Free Help from the US Small Business Administration:

· SCORE - Service Core of Retired Executives.

· Small Business Development Centers.

· Small Business Institutes.

Use formal and informal mentors who can help you.

Magazine: "Home Office Computing"

SBA Phone Number for your local area: 1-800-U ASK-SBA