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Starting a home business is a dream that many people share. You can work according to your own schedule, “fire” difficult clients, avoid difficult bosses, spend more time with your family, escape a lot of the daily stress faced by employees at their jobs, and pursue your own interest more. It’s a big leap from being an employee to working for yourself, so a little preliminary planning can never hurt.

You will need to look ahead to several areas of your life to make necessary preparations, before you actually leave your job. In some cases, such as a layoff, you won’t have that opportunity in advance, but still, these are very important factors to consider.

Market research and a business plan are essential. Timing is very important. You will need to think about the type of business you’re starting, current economic conditions, your financial situation, and the potential market for your products or services.

If you have no other means of financial support, you should accumulate some savings to carry you through your business startup. Most experts typically suggest six months to one year of living expenses as a cushion. Don’t forget that you will need to provide for benefits you may have received at a job, such as health insurance for yourself and your family and funding into a retirement plan. Of course, if you have a spouse or partner who is employed and is willing to provide these necessities during your startup phase, you are that much ahead of the game.

It is important that you choose the business structure that’s best for your business. Each form of business organization has both legal and tax implications, so be sure to consult with professionals in this area.

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These are just some general tips to keep in mind as you design/operate your small business:

1. Take the time out to explore and understand whether or not you are compatible with running our own business. Some people are just plain happier and better off financially on the other end of the paycheck.

2.Get your personal finances in order. Before you jump into the entrepreneurship world, get your own money matters squared away.

3. Pick your niche. Many small business owners succeed in businesses that are hardly unique or innovative. Take stock of your skills, interests, and employment history to select the business that is best suited for you.

4. Benefit from your business plan. The exercise of creating a business plan is what pays the dividends. Answer the tough questions now before the meter starts running.

5. Do not think you need bankers and investors at the outset of your business. The vast majority of small businesses are bootstrapped.

6. Acquire the proper background. In the early months and years of your business, you will have to acquire many skills. Gain the background you need to oversee all facets of your business well, but determine what tasks you should outsource or hire employees.

7. Remember that nothing happens until a sale is made – How many good products go nowhere because they do not reach the shelves? Sales drive your business. You will need a good marketing plan to sell your product or service.

8. You have to see a customer to know one. N o matter how busy you are, spend at least 25% of your time with customers. You cannot make the proper business decision without understanding their viewpoint.

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This article rates a home business opportunity using my “New Approach for Rating Home Business Opportunities,” of 11 major and 7 minor attributes. Each major attribute can be worth 7 points, while each minor attribute can be worth 3 points, with 98 points as a perfect score. Of course, there are no perfect scores for home business opportunities. The 11 major attributes are-

* Product or service
* Product price and market competition
* Company
* Proven business system
* Available Support system
* Available training and resources
* Compensation system
* Profitability – has good profit margins
* Costs involved – both startup and recurring costs
* Will I have full control over my business?
* Can I work this business at my own pace?

The 7 minor attributes are-

* How is the product delivered to the customer?
* Does the product/service have an automated delivery capability?
* Is the Company “On the Net” and E-Commerce enabled?
* Are you supplied with business tools to make your life easier?
* What level of administration is required?
* Consider whether you will be ahead of or behind the trends?
* How great is the potential to make money in this business?

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Are you working a day job while building your home based dream business? Do you find it difficult to manage your time? Follow these seven tips to get more done growing your business, and have more time for other important things in your life, too.

1) Make And Use A To Do List Daily.

It’s easy. Tonight, write down the tasks you need to do, in order of importance (revenue generating tasks first), on a 5×7 index card and tape it to your desk or computer. Tomorrow, do them one at a time, starting at the top of your list. Place any tasks that aren’t completed at the top of the next day’s to do list before you go to sleep. Seeing that list at the end of the day with everything (or mostly everything) scratched off is a great feeling.

2) Schedule Your Time For The Day.

Make note of your free time (non day job time) and schedule a block for each major activity that you need to do. Save the more involved tasks for the time of day when you are fresh and alert. Try your best to adhere to the schedule, but be flexible. Don’t stress out when you run out of time and get off schedule. Over time you will know how much time a task will take to complete and will be able to plan for it better. Remember, this schedule is only a tool for you to set aside time for what you need to do. It’s not intended to have a negative affect on you, but it could if you don’t be realistic.

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Create a Business Plan first
The primary necessity is to get a perfectly designed plan of action for a genuine business. A business plan on its own is useless. It is a mere reflection, but it will not suffice you also need an action plan. A business scheme is the first step in working out your idea into actions that you can follow. Well-illustrated business plans can be found online or at your library.

Begin now

• Do not be afraid of failure. Remember failure is the first stepping stone to success, if this home based business idea does not work out for you now do not let this deter you. Always remind yourself of the spider when you feel like losing hope.
• Do not let that wonderful home-based business idea gather dust. Start today.
• Waiting for the right time to start your business might make success elude you forever. If there is any specific right time, it is right now. Do not waste your precious time.

Put a figure on it
This is the greatest stumbling block for most home based business owners. That is, they fail to evaluate their work. If you do not give proper attention to this, you may have to wrap up your business. You need to know that real figures and numbers are needed for you to stay in business. If this is not your agenda of work, you are probably going all wrong.

Large businesses usually set up balanced scorecards. The idea is to have a referring point to compare how successful your work is. For example, to get five customers in one month you could settle on free seminars but if you see that your plan is not getting you five clients, you need to reassess your plan. Change of plan prevents waste of energy and resources.

By : Jan Heering

Young entrepreneurs and business owners are often times faced with the choice of which road to take. On one hand, there is the more conservative route of staying in college and getting a degree. On the other hand, many have thriving businesses that are making more money than their degree will ever get for them. Is college simply a hindrance? Or is it a valuable resource that should be continued at all costs. Many college business owners don’t even realize they have the choice of dropping out. Knowing this option is there could be vital to the success of their future business. If you are in college and are an entrepreneur or business owner you must ask your self this question: should I drop out of college?

The answer to this question often comes in many forms from many different people. I was recently at an entrepreneurial conference and had the opportunity to discuss this matter with many rich entrepreneurs. The answers I was getting from them were vastly different from those that my family had given me. On the one side I was being told that college is only useful if you are getting something out of it, and that if I was serious my businesses should take priority over schooling. From the family side I was being told to stay in school no matter what, put schooling at the forefront – there will always be time for business and it will be good to have a safe backup. Both of these answers have their merits, but which one is right?. It became clear to me that it was my decision- not the other wealthy entrepreneurs, and not your family.

Why are you in college?
This question is the fundamental element in the decision to drop out of college. Entrepreneurs must figure out the reality of why they are in college before making a decision to drop out. Some business owners are in college because their parents told them to go there, or because they didn’t realize they had the choice. Other young entrepreneurs are in college because they find the information valuable and want to continue learning while they expand their business. Even more still had childhood dreams of one day being an engineer or architect and want to follow through with their early ideals. You must answer this question truthfully and honestly if you are going to make a choice about running your business full time or staying in college.

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When you want to start a home business, it can be easy to feel alone, confused, and scared. The chances are that you don’t know anyone else who’s ever started a business, and you don’t even know who to ask if you get stuck. Here are a few things you ought to be looking at.

The Internet.
The Internet is a great resource for people who are thinking of setting up a home business – as well as all the articles you can find with practical advice, there are also many forums, where you can read about others’ experiences, and ask questions.

The Government.
Scary as it might seem to be getting advice on anything from the government, most governments go really out of their way to produce all sorts of easy-to-understand material on starting your own business. Encouraging you in business is a great way for them to both strengthen the economy and increase tax revenues.

Depending on your area, you might find that local government agencies are also keen to give you help and advice, and might even have some kind of ‘small business centre’ that you can visit.

Mentors.
Mentors are usually volunteers who think it would be nice to offer local businesses help and advice. They often have years of business experience, and can be really useful – if you find one, hang on to them.

Librarians.
Always willing to help and sadly neglected in our ‘wired’ age, you really should talk to a librarian. Libraries generally contain all sorts of business books and resources that they’ll be able to point you towards, and they’ll be more than happy to do research into obscure areas for you.

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