Those hoping to start a profitable home based business may feel overwhelmed by the seemingly limitless choices available. But some thoughtful analysis will go a long way in helping the entrepreneur choose the best home based business for his or her personal situation.
Have you ever considered starting a home based business, but just can’t decide what’s the best home based business for you?
You’re not alone! Many, many people have dreamed of having their own “work at home business.” But of course the “dreaming” is the easy part. Choosing exactly which and what kind of business to start is quite another matter.
But it’s not really as difficult as many would think. The task becomes a lot simpler when you can examine the many choices by way of analyzing the advantages and disadvantages of each.
If you’re one of those still in the “choosing stage” here are a few factors to consider that might make your task a little easier.
1. Startup Costs
One of the drawbacks to many home business opportunities is high start-up costs. No doubt you’ve seen lots of “business opportunities” that claim to get you started for “free.”
Don’t believe it for a minute! There are always costs involved.
You’ll want to look for a possible home business that has minimal start up cost. But beware of those opportunities that tout start up cost that seem unrealistically low. Examine these offers with a very critical eye.
2. Time to Become Profitable
A major drawback of many business opportunities is the time period needed to begin turning a profit. Although it varies, it can take anywhere from days to months – or even years – to make enough to even recoup your initial investment.
Of course the time needed to recoup your investment will also depend on just how great that initial investment was. But in any event you’ll usually do better to choose a business that will begin turning a profit sooner rather than later.
3 Ability to Start While Maintaining Your Current Job
The problem with a lot of business start-ups is they put you in an untenable situation money-wise. No matter how quickly a new business becomes profitable, there’s still a period of time when there’ll be no profits coming in.
If you’re depending on your job to pay the bills, you can’t quit your job until your business is making enough to pay your living expenses. But at the same time your job doesn’t allow you the free time necessary to start your business!
The best option in this case is to find a business you can start and operate part time while continuing your job, until you’re making enough to quit and devote full time to your business.
4. Operating Costs and Profit Margins
You’ll not only need some cash to start your business, you’ll also need some operating capital on a recurring basis. Do a careful analysis of what it will cost you to operate the business of your choice. Choose a business that will allow you a comfortable profit margin AFTER operating expenses.
5. Demand for the Product or Service
Regardless of how quickly, easily, or inexpensively you’re able to start your new business, you’ll never enjoy success if there’s little or no demand for the product or service you’re selling.
Make sure there’s a sizable market for your product or service.
6. Continuing Demand and Economic Conditions
Our economy is always changing. Businesses come and go because of economic factors, events, advancements in technology, and often because of the ever-changing needs and wants of the public. You could be making good profits one day, and the next day be watching demand for your product “dry up.”
Ideally you want to choose a product or service to sell that will always be in high demand. But at the very least choose one for which demand isn’t like to disappear with changing conditions.
7. Learning Curve
Starting any business always requires some degree of knowledge. Depending on the business you choose, it could takes days, weeks, or even months to learn what you need to know to start and maintain your business.
Look for a business with a short “learning curve” or for which you already have some aptitude.
8. Income Potential
Every business “opportunity” promises you high earnings potential. But just how realistic are those promises?
Always keep in mind the old adage “If it sounds too good to be true … then it IS!” Try to evaluate every opportunity dispassionately and choose a business that offers high but REALISTIC earnings potential.
9. Time Freedom
Starting a new business can be extremely time-intensive. Most entrepreneurs devote 10 – 12 hours a day or more, as well as weekends and holidays, to getting their business up and running.
Make a realistic assessment of the time requirements of your chosen home business, and make sure you have adequate time to devote to it.
“Satisfaction” is a personal matter, and not one to be taken lightly.
No matter what business you choose, you’re far more likely to be successful if you take personal satisfaction in what you’re doing, to feel that what you’re doing is worthwhile, something you can feel good about and be proud of.
Best of luck in your search!