5 Tips for Home Biz Startup Planning

Considering a home business?   Ongoing economic issues and technological advances have created an ideal environment for new entrepreneurs.  Some notable recent start ups have experienced tremendous success: Facebook, Google, Twitter, and Pinterest are examples.  Each company is a household name and a dominant in its market niche.  Each also started in a small apartment or college dorm room, not in a huge office space with lots of resources.

The founders of these companies were young – several were college students – inexperienced, and not especially wealthy.  Their success is partially a timing and location issue.  But much more contributed to the incredible accomplishment of Mark Zuckerberg (Facebook), Larry Page and Sergey Brin (Google), Jack Dorsey (Twitter), and Ben Silbermann (Pinterest).  These entrepreneurs along with millions of other business success stories share some common characteristics while avoiding major mistakes.  Here are 5 key tips to get you to think like an entrepreneur:

1) Identify a target market.  This is a key first step early in the business planning process.  Think about the demographic you want to target: ages, gender, ethnicity, and profession are examples.  You may not hit the target when starting out, but thinking this way will help you focus your product or service offering to a narrow group of consumers.

2) Pleasing People.  Yes, making customers happy is important, but so is getting feedback about what clients don’t like.  Think intermediate and long-term here, not short term goals.  Each and every bit of information – good or bad – you gather is a plus and helps for the long term.  As the well known quote states: you can please all people some of the time and some people all of the time…

3) Location, location, location.  A pizza place in the middle of farm fields probably won’t get many customers, but a Chicago-style pizza place in Miami may be a big hit.  A boat store in the middle of Nevada?  Maybe not, but located on either coast could be lucrative.

4) Budget.  New entrepreneurs don’t realize how quickly money is spent.  It is very tempting to buy the best technology, new offices in high rent buildings, and give out bonuses.  We suggest tempering enthusiasm with practical spending.  Save money by working out of your house for starters, use existing or low-end computers, and save the bonus for special occasions.  Create a budget and stick to it.  You wouldn’t live beyond your means, your business should follow the same rule.

5) Consider the launch date.  Launching a business too soon can mean a product is not complete and may turn off customers.  Launching too late costs money in development, provides no income, and may miss a hot trend.

There are many other factors to consider when considering a business, but the above 5 are potentially make or break.  Plan carefully and do the research needed to assure as smooth a start as possible.

By Dion D. Shaw

Dion D. Shaw is the founder and owner of Homepreneurs.

Homepreneurs.  New Day.  New Opportunity.

Disclaimer

Homepreneurs does not endorse nor have any relationships with any of the services listed.  Homepreneurs receives no compensation or consideration for its suggestions.  Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.

© Homepreneurs 2010 – 2012, All Rights Reserved

image credit: image belongs to public domain

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4 Responses to 5 Tips for Home Biz Startup Planning

  1. onlineghostwriterforhire says:

    Brilliant advice, as usual…Love your blog and your writing!
    There are so many people out there, who could have their own home-based-business, if only they would try it!

    • homepreneurs says:

      Absolutely agree. The only issue may be health insurance, but for those I’d say work a part time job with benefits and your own biz the rest of the time. Best of both worlds!

      • onlineghostwriterforhire says:

        That is the only issue, and I am choosing to live without it for now. But I hear 50 million Americans do not have insurance, so I don’t feel so bad.

        Being in your own business, even if you just squeak by, is so much better than having them treat you like a child!

      • homepreneurs says:

        Not always an option the older crowd, ones with children, or chronic conditions. Good for you, though for taking that chance!

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