Four steps to building a home business

Building a business in the home is achievable if the business owner treats the home business as a real business, has a sustainable idea, knowledge about the business, and a plan. Building a business is difficult and building a business in the home is more difficult because of the distractions the home environment provides. Therefore, anyone who has a business in the home needs a solid foundation upon which to build to minimize the risk of failure.

Develop a business mind-set

One of the first prerequisites of a successful home business is the development of a professional approach to doing business. The first decision an aspiring business owner need to make is whether this is a real business or a hobby. This is important because real business strives to make a profit and those who pursue a hobby are happy just to have something to do. This involves getting business cards, professional looking stationary, and a space to work in totally set aside for doing business.

A key ingredient to home business success is good management or leadership. As a manager, the home business owner must keep the books, pay the bills, market the products or service, do the inventory, and perform all the other mundane tasks of owning and operating a business. This means setting business hours, dressing for business, and seeking new projects for the business.

Develop a sustainable idea

Home businesses, like any other business, begin with an idea or dream regarding the business by the owner. Many attempts at starting a home business fail because some people do not know what they want to do. The romance or idea of being in business is more attractive than actually running a business. Therefore, the individual building a home business must decide what type of business to enter. Research is necessary to decide what industry is best match the owner’s personal interest. The best advice to follow when deciding what business to enter, involves doing things the owner love doing in a field he or she is knowledgeable.

Develop knowledge about the business

Research supports that the knowledge of the owner directly correlates to the success of a small business (Pansiri & Temtime, 2010) therefore, home business owner can improve his or her chance of success exponentially with the more knowledge he or she gain about the business. The use of knowledge the home business owner gains is the variable that fuels business growth. Recognizing that the right mind-set, the sustainable idea, business knowledge are important are three of the most powerful lessons a home business owner must learn but, the most indispensible lesson of all that becomes the glue that holds everything together is writing and adhering to a plan of action.

Develop a business plan

This plan of action is a business plan. Taking the time to write a business plan for a home business helps the business owner to put down on paper all he or she has in his or her mind. The business plan is a blueprint for building the home business systematically. Having a business plan helps the home business owner to maintain focus as he or she goes about building the business. The business owner who develops a clear action plan for building an effective home business is planning for long-term success.

References

Pansiri, J., and Temtime, Z. (2010). Linking firm and managers’ characteristics to perceived

Critical success factors for innovative entrepreneurial support. Journal of Small business and

Enterprise Development, 17(1), 45-59. Retrieved from ABI/INFORM Global database.