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Starting a Home-Based Business

If your boss is not a likely partner, don’t despair. For every person who has made a fortune going into business with the company he or she worked for, there are tens or hundreds who have started profitable businesses on their own. The classic business start-up occurs at the kitchen table. The great thing about starting a business from your home is that you don’t have to spend extra money on rent, furniture, and utilities. You use what you have at home and devote all of your time and money to other, more important matters. This sort of escapist approach to business is understandable but inadvisable. Your chances of being successful are much, much better if you start with what you know.


Successful start-up businesses depend primarily on knowledge— specifically knowledge of the customers and the products. Knowledge of the customer includes knowing:

• Who are my buyers?

• How can I reach them?

• What do I need to say or do to sell them?

• How do I get them to buy more?

  The answers to some of these questions are obvious, even to an outsider. But the most important knowledge about customer acquisition, retention, and product development is difficult to decipher.
Logic might dictate, for example, that you should open your shoe store in a town that doesn’t have a shoe store. But anyone who has been in retail knows that such a conclusion is the basis for disaster. Much better to put your store in a town that already has 50 shoe stores, even if the rent is considerably higher.


Cut-and-run decision
To make your cut-and-run decision easier, set a stop-loss before the first test. Figure out what kind of return you expect from the advertising campaign and stick to it, even if the results are close. more
Advertising campaign
To give your little business its best chance of succeeding, you have to find a way to bring in customers profitably before going out of business. There is only one way to do that properly, and that’s to create a great advertising campaign and expose it to your prime audience.
how to effectively acquire new customers
By focusing the lion’s share of your time, money, and talent on advertising, you can very quickly find out the most important thing you need to know about your new business: how to effectively acquire new customers.

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Forget Retail and Glamour Businesses

If your idea for a side business involves a retail store or just about any business you think is glamorous (travel and entertainment are the two biggest culprits), save your money. Retail businesses can succeed, but they are very difficult and very time-consuming, and they almost never provide the ROI you want from them. Travel and entertainment businesses are even worse.

Sell First, Tweak Your Product Later
Another very common cause of failed start-up businesses is forgetting that making the first sale is the first job. Many people go into business with the idea that they should get all the details worked out before they open shop. They get all their plans done (sometimes to the nth degree), rent and equip an office, print business cards and brochures, and then get busy with operational and fulfillment issues before finding out whether they can sell the product. Good start-up businesses have efficient marketing models and the only way to find out whether your marketing plans will prospect surveys, or even simulated sales situations. Most of that stuff is a waste of time. work is to test them. Testing them doesn’t mean marketing studies,.
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If you create a great advertising campaign and it fails, stop everything immediately and regroup. You may be tempted to throw good money after bad by testing other marketing ideas. ...”
            Don’t Throw Good Money after Bad
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