Part 3 of 5 On The Home Business Set-Up Guide

Part 3 of 5 On The Home Business Set-Up Guide

Dear Reader,
These articles will provide a step by step guide on how to start and run a home based business based on my experiences and other home business owners. This is part 3 in a series of 5 articles. They are written in a basic format and where possible main points are summarised in an attempt to be understood by all. I have tried to minimise the technical jargon as much as possible.

So lets jump right in and see what we need to know about starting and running a home based business.

Regards,
Alvin
http://www.parttimeincome.org

I publish Home Business Tips, a fresh and informative newsletter dedicated to supporting people like YOU! If you’re looking for the best rated home business opportunities, latest time saving tools and helpful support from a friend in the business, come by and a grab a F-R-E-E subscription today at: http://www.parttimeincome.org

Organising Your Business

It is essential in managing your business that you set-up files, systems, procedures and schedules for completing regular routine tasks. Construct a timetable to set times on when you will be working on specific tasks. Having set goals for each task will motivate you to complete these tasks. Stick to your timetable and you will achieve your goals. At the beginning of each week, tabulate a ‘to do’ list which clearly states important priorities and any sundry matters. These habits are some which successful home business owners have employed and have sticked to in order to achieve their goals.

Managing Your Time

With many tasks awaiting you in your business, decisions will have to be made on which to complete first. Challenging tasks should be tackled when you feel you are at the peak of your day.

Being at home, it is easy to get distracted by ‘home matters’ and other personal events that may unexpectedly drag you out of the office. Set a regular starting time and ensure family members are aware when you are ‘in the office’ and when you are not.

The temptation is great to spend all your time working on your business. Hold back and balance personal and business commitments and you will find your performance will be a lot fresher and enthusiastic.

It is definitely a good idea that at the end of your working day, you shut the office door and switch on the answering machine. Being vacuumed back in the office when not necessary is a disaster in the making.

Revisiting The Business Plan

By now, you should have a business plan. Many make the mistake of leaving it in the bottom drawer. A plan has to continually change and adapt to the situations around it. You need to keep it updated to incorporate any current activities and opportunities.

Sales Projection

Estimate your sales for the next 12 months and record these. This will become important in assessing your cash flow for the business. Try and include variations in seasons that will influence your sales. Try not to be too ambitious nor too conservative in your projection. You do not want to be disappointed either way.

Cash Flow Projection

This is a summary of the expected monthly earnings and costs in your business for a 12 month period. By recording these figures, you can track and develop strategies for managing them. Projecting cash flow concerns the liquidity of the business rather than its profitability. It is also used to indicate when transactions will impact on your bank account balance. Liquidity is important as it ensures you don’t run short of cash during the day to day running of the business.
Market Research

It is essential to make a profile of your customer base and use this information in developing marketing strategies. By being aware of the customers needs and wants, you can often predict their future behaviour.

To ensure you don’t get caught into the trap of researching unnecessary information, find out why you need to do the research:

§To increase the information you already have?
§Defining a problem?
§Investigating an opportunity
§Evaluating a strategy your already implementing

It can be a little bit daunting conducting market research, here are a few examples of how you can access information required:

§Financial records
§Customer surveys/ feedback
§Staff surveys/ feedback
§Testing products or services
§Industry associations
§Libraries
§Government agencies
§Industry exhibitions and trade shows
§The Internet

The Marketing Plan

The essentials of a marketing plan include:

§Sales performance
§Business opportunities
§Sales objectives for the next 12 months
§Summary of the marketing strategy including who, what, where, when, how much
§Pricing strategy
§Location
§Advertising and promotion
§A plan with an evaluation procedure

Marketing involves everything from logo design, pricing, advertising, promotion, sales and down through to customer service.

Selling

Not your business, your just starting it, but your products! Selling is where you approach your clients, inform them about your product or service and reach an agreement where they purchase your product or service. As this transaction is repeated the business grows, and so does your profits.
Many people often underestimate the time it takes to sell your product. It may take 50 alls/ visits before someone might be interested. The more people you approach, the more opportunities you will create, the better your selling technique becomes. Fear of rejection is normal when you first start out in business, but in order to succeed you must overcome this fear and build your confidence.

Building Awareness

Some ideas to build awareness of your product or service include:

§Keeping a mailing list of the clients you have worked with
§Talking to other small business operators
§Listing your business in the yellow pages
§Write short articles for newsletters, or better, start your own
§Give short talks at business clubs
§Business cards, stationery, brochures
§Written references

Other ways of informing potential customers about your business is by the use of media. These include:

§Stationery
§Press advertising
§TV, radio, cinema
§Business directories
§The Internet

I hope this article has set you on the path to create your own home based business and empower you to reach your financial destiny.
In the next article, I will cover some of the ins and outs of growing your small business from home.

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