Start a home business

[Robert Gerrish]

Here at FSHQ we've been noticing something of a spike in traffic to our 'start a business' areas. No great surprise really.

My inbox is also getting more than average activity, notably from would-be soloists considering starting a home business.

One of the trickiest questions to answer is "I'd like to start a home business, what do you recommend?"

So dear forum community, will you help me? I'd love to hear your responses to such a question. My tendency is to avoid specific recommendations and instead look internally for what drives each individual.

What's your take on this? My hope is that your responses will create a discussion that we can direct people towards...and that will help them AND ease my inbox!!

Robert

[competitions]

Originally Posted by robert_gerrish

One of the trickiest questions to answer is "I'd like to start a home business, what do you recommend?"

That's a hard question, I don't think one size fits all and personally I would think it has to be something you have a genuine interest in and or genuinely enjoy doing.

If that isn't possible, you may as well still 'be working for the man' as could offer more security and if that isn't possible (in this economic climate), make sure it's something you know about or learn quick!

[LeelaCosgrove]

I think one of the things to think about is what you want to invest in terms of capital.

If the answer to that is - minimal money, just time - you're probably better off looking at an online based business.

This doesn't have to mean a shop-front (although drop-shipping is something you can look into if you want to do retail) - it can mean any kind of services that you sell over the internet.

E.G.

It took me AGES to realise that my writing business is, in many ways, an online business. I have many clients I've never met and only talk to via email. I deal with all of my contractors online.

Sure, I provide a service - but I run the biz from home and predominantly online.

So, the first step is to look at your skills and look at what the market needs.

A LOT of people are looking at taking on freelancers and contractors right now due to the economy ...

I would make a list of everything you know how to do ... and then do a brainstorming session of everyone you can think of who might need someone to do that ...

Try and be creative with it ... I mean, a lot of people might be able to be VA's, but that market is quite crowded with people right now ...

I would definitely recommend finding a niche ... if you have particular industry experience or if you know some people in an industry who might need your help, that can be a good way to start ...

And of course if you're just starting out and you're interested in becoming a writer, you can contact me ... because I'm always looking for more writers to sub-contract to!

[tildavirtual]

What are they good at? What do they enjoy doing on a regular basis? What are they passionate about? What type of work have they done before?

As we all know owning our own business whether it be brick and mortar or online is hard work. We have our ups and we have our downs. It isn't something to jump into lightly and it certainly isn't a get rich quick scheme. We all do what we do because we love it and are passionate about it.

They need to look inwards before they can even begin to think about setting up a business, then research, research and research!

Regardless of what type of business people start, in my humble opinion, they will need a variety of skills and not just an internet connection or a computer. If they don't have some marketing knowledge, time management skills and financial skills in addition to those they need to run their business, people will find it all very difficult very quickly.

[Burgo]

This really is something that can be answered very easily.

'What do you want to do'


'Then DO IT'

To me if a person asks what he/she should do they are notsuited for soloism.
Whatever they do they will fall prey tp the not successful syndrome.
They will waste your time and theirs in trying to find a quick fix solution thatwont work for them as they are not really interested. theywant someone like you to do it all for them so the can reap the profits.

Am i of the beam this is a reality show not TV


ps hope i didnt slurrrrrr my words have enjoyed a few wines tonight

[peppie]

Robert, may I suggest that you forge a link with an organisation like Eastern Suburbs Business Enterprise Centre (Sydney) and the NIES scheme that they run. I may be wrong, but I think you may be aware of it because I suggested to David Baumgarten that he refer participants to Flying Solo and he told me that he had already had contact with you.

For everyone else in case you are not aware, NIES is a federal government scheme for helping out of work/on the dole people to start a business. You propose a new business idea and if they like you and accept you into the program you then do a 6 week crash course on small business management in which the trainers also help you to create a business plan. At the end of the course you present your plan and finished business proposal to a panel of independent business types and if you pass that you get to be on a mentor support program for the next 12 months, all the while getting the dole as well.

A few years back they also opened up the program to over 50s who did not qualify for the dole and could finance their own costs for the 15 months of the scheme. I did that about 2 years ago and although I had been involved with businesses and associations for donkeys years I did learn a lot that I wish I had many years ago.

I hear that the benefits of the program seem to depend on the provider and I have to say that I really had no complaints about what we got at Eastern Suburbs Business Enterprise Centre, but I would recommend finding out for yourself at one of their introduction sessions.

I believe they also provide other consultancy services for existing businesses and I think some of that is government sponsored also. Here is the site link for anyone who would like to see more http://www.easternsuburbsbec.com.au/esbec/NEIS/

They also sponsor a number of networking events and training sessions in conjunction with some similar organisations around Sydney.

[Burgo]

He used to run an organisation called Business Buddies, which was a voluntary operation where by people like you and me with a business background would help small business people who were having a touch of trouble. Like a mentoring programme. Yes I remember him well.

[Robert Gerrish]

Some fine responses all, thank you.

Paul - the NEIS program is indeed a good recommendation for those who fit the bill and it's run in many regional centres, mainly through the BEC network. Thanks for the suggestion.

Patrick - I remember the Business Buddies concept well. Some years ago one of the services I offered was business naming and BB was one of mine, at the time I was on the Board of David's BEC...a small world isn't it?

Robert

[Sef]

It goes without saying that the first requirement is passion.
The second requirement is drive.
And the third requirement is skill
If you haven’t got all three in big doses, forget about starting a business

However the right personal attributes will not guarantee business success
The biggest bit of advice I can give is to plan, plan and plan.

For a business to be successful you need:
A marketing plan: What is my demographic? Is there a need for my product/service? What is my competition?
A sales plan: How will I approach people? What advertising do I need
A financial plan: How much start up capital do I need? What is my projected cash flow?
A resource plan: Can I run the business by myself, do I need staff, do I need other resources (IT, legal, accounting)
And most importantly an exit strategy. I don’t know the latest numbers but only 1 in 10 new businesses survive the first year. What if the business fails? Maybe set a maximum debt position above which you pull the plug? Can I return to my old job? (Never burn your bridges!)

I am sure there are plenty of books and websites with far more detail, but it is my believe that too many businesses are started without adequate preparation. A loose idea, lots of excitement and plenty of friends saying “you’d be great at that” are not a solid basis for going solo.

[ray_223]

My advice (and if you search through the forums I say it on almost every post!) is to get your product or service in front of potential customers as quickly as possible (and preferably with as little expense as possible)!

Once you start getting a few customers use their feedback to build/improve.

No one can (reliably) predict if your idea will be successful, the only way to know is to do it and see how it goes.

----

What follows are minor details compared to my first point:

* Spend as little money as possible until you can prove that your idea is sound and has potential.
* Find / develop a Unique Selling Proposition (USP). You need to be the best in some way to be successful. Even if you have to find a small niche to be the best in.

This next one is a personal preference - and goes against what everyone else recommends:
* If you can't find a business in an area you have a passion in, find one that pays the bills. I get a bigger kick out of running a business in an area that is pretty much boring then I got working for someone else in a more interesting area!
Developing marketing strategies, developing new products, getting and keeping customers, learning and developing business processes give me more satisfaction then working for someone else.

There are far more boring and uninteresting jobs that need doing then exciting and interesting jobs. It is much easier to be outstanding in an "unsexy" business areas then be moderately successful in a "sexy" business area.
You still can't "hate" your day to day work though ... I wouldn't suggest someone who hates animals to operate a dog wash service as an example.