What makes a successful home business opportunity successful?
Successful home business opportunities have to do a couple things, and do them well, in order to be considered successful business ideas. Let’s look at a couple of those components.
First off a successful home business has to be a profitable business opportunity. In order to establish whether or not a business is profitable it is important to understand fixed costs and variable costs.
What are the fixed costs of a successful home business?
Well, as you have guessed they vary. A home based business opportunity, which is what I write most about here at Create Liberty .com has low fixed expenses. My fixed monthly expenses for Create Liberty Enterprises are under 200 dollars. They could be less but two hundred dollars works for me.
What are some fixed expenses of a successful home business?
- Auto responder-$20 ( delivers newsletter and sends pre written emails)
- Lead management tool-$39 (To keep track of who I talk to)
- Conference Bridge Subscription-$30 ( I use this to explain business and product details)
- Internet Connection- $29
- Unlimited Long Distance- $25 (on top of normal phone)
- 1-800 Number- $15 ( optional)
- Hosting,Domain, Names – $15
After fixed expenses in the business opportunity we have to look at variable expenses. Variable expenses vary widely in a home based business. Right off hand I automatically think of marketing. I have a very low marketing budget and have gotten good results. I went the way of AdWords last winter and I did not like it. I’ve learned more about AdWords in the mean time and will likely pick up where I left off.
How do you market home business opportunities successfully?
Marketing does affect profitability though, so lets talk about that a minute. When I think of marketing I think ROI or return on investment. The price of products comes in to play as that plays a vital role in a home based business being successful.
Here is my thinking. If you have to do the work anyway, why not get paid what your worth. I see a huge problem with opportunities offering low profit margin products if your going to market a business, product or service on the Internet. If the key word you want is “start a home based business” and it costs $5.00 a click and you have a 3% conversion rate for visitors visiting a splash page then that means for every 100 clicks you get three leads or people genuinely interested in starting a business. Those clicks cost you $500 bucks. Do you see how important ROI is and the price of your products or services?
These are a few important factors of what makes a business successful or not. I use and teach inexpensive marketingthat works. It is important to realize that just because a marketing campaign costs $10,000 does not mean it will work. A successful business venture will teach how to test and commit larger funds only to marketing ideas that are proven.
What does a successful home business provide the new entrepreneur?
A successful home business opportunity has a system in place so a novice can get started marketing the business and making money quickly. More importantly the compensation plan ensures the a person will have support long term to aid in their success… Times change and if you start a successful business today, you want to have assistance 3 years from now when marketing tactics have changes. We use a simple check list that lets a person do some basic set up in one day or less. That is automated and our training is too really. It is live one on one and via conference call but the training is scheduled in such a way as to not take hours of my time.
A successful business will also innovate. Innovation needs to be built in. Creating wealth with a successful home business is a smart way to invest both time and money. I’ll write more on that later. Come back and read “long term home business strategies”.