home-based business

431527878_d349db4dc4[1] (2)

Here’s a pop quiz: What is the key difference between running a business and pursuing a hobby? The answer is: You run a business to make money, while a hobby is something fun that you do in your spare time.

So, do you have a home-based business or a glorified hobby?

Here are 5 Questions to Ask Yourself:

1. Do you have a clear set of financial goals for your business? In order for your goals to be effective, they should be date certain (meaning completed by a particular time), measurable, and attainable…with some work.

2. Is there a market for your product or service? To answer that question you must do some formal or informal market research to see if there’s a REAL need or demand for what you’re offering. Market research is especially critical if your business is restricted to a particular geographic area.

3. If there’s a market for you product or service, can they afford to pay for it? For your business to be financially viable your pricing has to be what your market is willing to bear–if it’s too high you won’t have many customers. (Also, if you are charging significantly more than your competitors, what is the added benefit for customers to buy from you?)

4. If your market can afford to pay for your product or service, do you have a promotion and marketing plan to reach them? If your target audience doesn’t know that your product or service exists there’s no way that they can purchase it from you…even if the price is right.

5. Do you outsource work that doesn’t directly generate income for your business? The time that you are spending filing papers, going to the post office or getting supplies from Staples is time that you aren’t making any money. You can use virtual assistants (who often work on an hourly rate) or college interns as inexpensive ways to get your “support” work done.

{Add Comment Here}

Photo by Rienk Jan Schurer

The Internet is rife with marketers hawking client attraction systems to solopreneurs aka home-based business owners. The formulas vary a bit, but generally these programs teach that you should build your database (your cash cow) by distributing an ezine, conducting teleseminars (free and paid) and providing a free report as an inducement for people to subscribe to your ezine.

There is nothing inherently wrong with these suggestions. They are indeed valid ways to market, promote and sell your products/services. Unfortunately they won’t work alone–the missing link is networking. You’ll probably only be marginally successful if you don’t get out and meet people. What most of the client attraction gurus fail to tell their followers is that networking was critical to them finding the mentors, information and resources that they needed to build their 6 and 7 figure businesses.

I like networking as much as I like going to the dentist. I loathe intentional mingling and the awkward conversation that usually accompanies it. I’m also not a fan of people pushing their business cards on me or suggesting a joint venture when they can barely pronounce my last name. However for the sake of my business I’m diligently working on improving my networking skills. Despite the popularity of Twitter and Facebook most people still prefer to meet face-to-face at conferences, conventions, seminars and cocktail parties, happy hours.

I was glad to come across LaToya Petersen’s article, “But….I’m Too Shy to Network” in online magazine Jezebel.com. She advocates re-framing networking—think of it as looking for potential friends rather than hunting down potential business contacts. She also provides some really good tips about how to initiate and maintain new relationships.

Read the article But… I’m Too Shy To Network here

Please let me know your tips for effective networking.

Be the first to comment