How to Start a Home-Based Business That Will Succeed

You Can Start a Successful Home-Based Business of Your Own

By Susan Ward

The best home-based business is the one you start with your own two hands – not the one in the work-at-home ad or the one your friend is promoting.

So how do you start a successful business in your home? The secret of success is not to stop halfway through the business selection process as so many people do. Follow these six steps to start a home-based business that will succeed rather than just being a drain of your time and money.

01 Assess Your Talents

Think of your talents as the things you’re really good at. They’re like personality traits. For instance, you may be a very creative person, or a person who’s really good at attending to details or a person with a gift for communicating. Your talents are the base for any successful business venture, including a home-based business.

If you have never been self-employed before you need to do some further self-assessment to determine whether you have the right personality to be an entrepreneur. Starting a business is not for everyone. (See 6 Traits You Need to Be Self-Employed.) Common traits for successful business owners are motivation, self-reliance, perseverance, initiative, and the ability to deal with uncertainty.

02 Examine Your Skills

Weaver
Image (c) Monalyn Gracia / Fuse/ Getty Images

Your skills are the things that you can do. The difference between talents and skills is that talents are passive and skills are active. Or, to put it another way, you’re born with talents but you develop skills over time as you learn. For instance, a creative person may have excellent skills for drawing or writing or design. A person who has a talent for attending to detail may have strong accounting or organizational skills. You’ll need to call on both your talents and skills to start a successful home-based business.

03 Put Your Talents and Skills Together and Generate Business Ideas

The procedure outlined here will work for starting any kind of business, but as we’re focusing on home-based businesses, the question is, “With these talents and skills, what kind of home business could I start?”

Suppose you’re one of those people who has accounting and organizational skills and the talents to back them. Some of the home-based business ideas you come up with could include:

  • Tax preparation
  • Bookkeeping
  • Business manager
  • Professional organizer
  • Virtual Assistant
  • Baybsitter

And that’s just six ideas from our limited premise here. When you’re doing this exercise, you, of course, have more than one or two skills, so you’ll find that your list of possible business ideas is much longer.

Don’t censor yourself as you list home-based business ideas. List all your ideas at this stage; crossing off choices comes later.

Need help getting started? 7 Sources of Business Ideas will show you how to get started thinking as an entrepreneur.

04 Give Your Business Ideas the Home-Based Business Test

When starting a home business, you need to keep in mind that not all businesses are going to work well as home-based businesses, and some won’t work at all.

You are not going to be able to start a manufacturing business in a residential neighborhood, for example, and any business that involves a lot of clients coming and going is sure to upset the neighbors.

Go back over your list and cross off any business ideas that won’t work as home-based businesses.

If you are intent on starting a business where you actually get to work at home, also cross off any business that could be operated as a home-based business but wouldn’t allow you to do that. For example, in the short list of sample business ideas above, I would cross off “business manager”, as this would involve off-site work.

Many people who want to start home-based businesses stop here. They’ve come up with an idea for a business that they like and feel they’ll be good at, so they plunge into it at this point.

Don’t make this mistake! If you do, you run an extremely high risk of investing months of your time, energy and money in a losing venture and seeing the home business you had such hopes for fail.

The next two steps are critical to your home-based business’s success.

Figuring out the profit angle and doing a business plan are two important parts of the process of starting a business – two parts that many people starting a home-based business don’t bother with.

But if you want to start a home-based business that will succeed, rather than just being another business failure that drained your time and wallet and left you disappointed, you need to pay particular attention to these two steps of the startup process.

05 How to Start a Home Business: Figure out the Profit Angle

Business Planning
Image (c) andresr / Getty Images

This is the litmus test for anyone wanting to start any kind of business. You may have a great talent for something and the skills that enable you to express it, but if people aren’t willing to pay you for the product or service, it won’t work as a business.

For each home-based business idea, you need to know the answer to two questions:

  • How much are people willing to pay me for this product or service?
  • Can I make a sufficient income from that?

For instance, suppose that you, being a creative person, are able to make beautiful quilts. However, because of the time involved, you’re only able to make two quilts per month. You discover that people are willing to pay $200 for each quilt you produce. The math says that you would have, therefore, an income of $400 per month. (Actually less, as there will be expenses related to quilt production, such as cloth and thread, to deduct from this amount.)

It’s ridiculous to think that you could live on $400 a month, isn’t it?

But many people put themselves in a very similar position by starting home-based businesses without considering the profit angle. Business is about profit, and without sufficient profit, you’ll never have enough income to even pay the bills, let alone generate wealth.

Go back to your list of home business ideas and assess the profit-making potential of each. If the answer to either of the two questions above isn’t satisfactory, cross that idea off your list.

Note that you decide how much income is enough. Many people run part-time businesses that supplement their income and are perfectly satisfied with that.

If you want your new business to provide all of your income, however, you have to research the profit-making ability of your business idea very seriously.

06 Do a Business Plan to Assess the Viability of Your New Home Business

Business Plan
Image (c) Goldmund Lukic / Getty Images

Many people are under the impression that working through a business plan is only necessary if you’re going to be looking for a business loan. But the primary reason to do a business plan is to find out if your business idea has a chance of becoming a successful business.

So once you’ve chosen a home-based business idea you’re passionate about, write a business plan. The research and thinking that you do as you work through the business plan will do more than anything else to ensure that the business you start succeeds.

And if your business plan shows you that your idea isn’t viable, shelve it, choose another home-based business idea and go through the process again. It’s not uncommon to work through part of at least three business plans before you find the idea that will blossom into the thriving business you want to run.

07 Ignore Those Ads and Roll Up Your Sleeves to Start Your Own Home Business

Home Businesswoman
Image (c) PeopleImages.com / Getty Images

Want to start a successful home business? Ignore the work-at-home opportunity ads; there are no shortcuts. Instead, follow the six steps outlined above. You’ll end up with a home-based business that truly has the potential to succeed, bringing you the money and the satisfaction you’ve been dreaming of.

2 thoughts on “How to Start a Home-Based Business That Will Succeed

  • June 16, 2019 at 2:44 am
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    LBRC- Here’s a College Lecture Course Series some got “College Credit” for attending! If you are fortunate enough to have “College Patience” like those who successfully complete College and most importantly “College Comprehension Ability”, you’ll be rewarded! 

    Lecturer: Milton Friedman (1976 Nobel Prize- Don’t Let This Scare You! When We Trained Science Teachers, We Found The Best Teachers Always Make Complicated Subjects Easier! Disclaimer: Nobody should be held accountable when a Mind is “Organically” impaired aka “Retarded”).

    Subject: 

    (a)Social Security (In its Present Form) is a Program whereby “The Poorest” pay to “Educate” and secure “Wealth” for the “Real” Middle Class” and Wealthy! 

    (b) The Federal Reserve is a “Scam” and Congress is complicit! The Poor are generally unable to comprehend perplexing “Schemes”, too poorly educated and are vulnerable to “Myths”. btw- How many “Myth” believers are there in a State ranked #50 out of 50? If you ran a school in last place “Educationally”, shouldn’t ‘Dat Principle(s), (BESE and La. Legislators Be Replaced due to their product? It’s why they say they fired “All” of New Orleans’ Negro Teachers! 

    btw, Problematic is: Voter Stupidity and Entrenched Racism in “Ruby Red Louisiana”! Truth is painful, isn’t it?)! 

    *Milton Friedman Speaks- Myths That Conceal Reality, Go Here>>>

    https://m.youtube.com/watch?v=xNc-xhH8kkk 

    Peace Out…

    Reply
  • June 18, 2019 at 10:28 pm
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    Be a Leader NOLA!

    LBRC- Blacks in The USA are in the same position as Cuba in The USA “Controlled” Northern Hemisphere! How so?

    1. Cuba is “Not” dependent on “Imported” oil! Cuba has broken its addiction to Consumerism!

    2. Some call Cuba a “Banana Republic”, but guess what? Castro “Earned” a PhD. Cuba produces more MD’s per capita than in the USA or any European Country, over 200!

    2. In the next USA Economic Crisis (A Great Tribulation), Trump has already warned you in his June 15, 2019 Email, the USA will metamorphosis a “National Banana Republic” with the next crisis! What is this De Facto  3rd Grade limited Intellect telling American Negroes? Katrina demonstrated to you how much “Daddy ‘Guv” cares about Negroes in a crisis, what do you expect when the “Next” hits? Expect it soon! Expect WIC, Sect. 8, SS, IRA’s after Stocks Collapse to be confiscated as FEMA Camp expenses? 

    a. ‘Stuntun Negroes pretend to be in good shape. Ask these same Negroes to donate $1000 to the United Negro College Fund. How many have “Ever” donated more than $100 dollars to “Any” Charity, let alone to a Political Campaign? Negroes ‘stuntun in Gated Subdivisions won’t last longer than a Snowball in Hades, watch! How long will any of these Negroes last in a Shtf, without the job they kissed and kiss ‘Glute for 24/7/365? 

    b. Sad, but the majority of Negroes are either poorly educated, undereducated or De Facto simply ill equipped. We came back from a trip and couldn’t stand the simpleton casual conversations of Negro friends and others in typical Negro communities, most of whom stunt “Importance”!

    3. It’s time to begin to embrace “Birds of a Feather” in the positive sense! Ignorance and failure is contagious! Cuba will look like Paradise when shtf hits The USA for Negroes! Most will fall into FEMA Camps, just like during Katrina, even those ‘Stuntun! Ignorant family and others will “Help” take them down! When the Tornado hit in February of 2017, we saw more Negroes than ever begging, some attempting to exploit others aka “Gittin Over” and others in line for “Free” meals in NOE! How pitiful, Negroes are in worst shape ever, more than during Katrina, as though Hurricanes have ceased to exist in the hemisphere. Most have dropped Flood Insurance which has increased 10x because they refuse to vote for a “Non Racist” insurance Commissioner! Three previous have been removed and prosecuted! NOLA Negroes pay the “Highest” Preminums in Louisiana! ‘Simps just don’t get it! As usual, all they do is complain and pontificate! 

    4. The Oil Cartels have made you dependent on an obsolete technology and they have bought your Politicos, who couldn’t care less about who they’re supposed to be representing. Try calling one and watch how many “Filters” and paid Flunkies you need to navigate. When NOLA was over 500k in population, it wasn’t as hard! These Scam Artist gave themselves a 100% raise with perks, 10x what Service Industry Emplotees earn, Neo Slaves and Share Croppers, then have the gumption to ignore you and plot with energy Lobyist to pollute where “you” live! Lots of compensated community Suckers plus those like “Paid Actors” dupe ‘Simps who are Clueless, even after The Courts have revealed The Scams! How Stupid, never mind…

     What is Cuba doing Negroes in The USA should be? You ‘betta, time is even shorter! Go here>>> Hungry Neighbors in a SHTF? How much ammo will you need in the Collapse?

    https://m.youtube.com/watch?v=ygujCeaSzog  

    Reply

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