Starting a small business today doesn’t require the risk and capital of the small business ideas of old. At home business start ups don’t require theonce mandatory cash outlay associated with traditional businesses.
To start a new business and have success I think the main ingredients still need to be present or able to be created, commerce is commerce… Some of the things to look for when choosing a business to start are:
- Sizable need or market.
- A productive way to deliver your product or service.
- Excellent customer service. (never goes out of style)
- A way to get your message out.
- Provide a solution to a specific problem or fill a pressing need.
These are common themes that should be present in a viable small business idea. Being profitable won’t be possible without these in place to begin with. What are some of the differences in the traditional small business start up and an at home business startup?
At home businesses require much less capital than a brick and mortar business model. For starters, you already own the real estate. Traditional business ideas start out in a bad cash flow position for this one reason alone. Many small business failures site costs of real estate or real estate leases as the number one source for business failure. The at home business opportunity definitely has a hand up on this one. Another idea worth mentioning is the home based business tax deduction you can qualify for if you use a portion of your home for business.
Businesses started at home can also be started on a part time basis, and often times are. Starting a business while still holding down a day job can be tough, but many entrepreneurs choose this route to reduce risk.
Statistics also support another important factor when it comes to starting an at home business, lower payroll costs. I think the Internet has assisted many entrepreneurs in this regard. Many bloggers for instance have no employees and earn 100k and more per year. Based on my own small business experience, in order to earn 100k per year, I would pay out around 380k to 420k in payroll expense.
Many times when people first start a new business or are planning the start up, they are following a vision. An optimistic attitude is valuable, but at the end of the day, it doesn’t pay the bills. Start with a solid business model that is scalable and you’ll stand a better chance.
It is common knowledge, although exact figures are disputed, 95% of small business start ups fail before year 5. I have always been confused as to why this statistic is acceptable, instead of worrying about, I chose to start a different business. You’ll find adding something better is often times a more productive idea than changing an existing, and entrenched, way of thinking.
We appreciate comments. Are you thinking of starting a business? Are you an entrepreneur? Add to the conversation! The comments are below.
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Great article…I would like to add if you want to get your feet wet with the internet/home business…affiliate marketing is the way to go. No overhead at all.Later on you can branch out once you know your way around.