Starting A Home Business Involves More Than Most People Will Ever Tell You

Starting A Home Business Is Never As Easy As Product Promoters Make It Seem

If you have been interested in starting a home business to either replace your current income or supplement it, you probably began your quest with some searches on the internet. No doubt, you have come across a ton of information about the subject as well as many scam programs that are designed to simply part you from your money.

The first thing you have to understand is that not all home based business ideas are scams. The hard part is determining what is not a scam and what is. Typically, I have found that if the offer presented has words in it that refer to terms like “Autopilot” or have outlandish income claims then you should scratch those off your list immediately. There is no such thing as “AutoPilot” income when you first get started, although with time and experience you may learn how to automate much of your daily tasks.

There Are Many Types Of Businesses That You Can Do From Home

Network Marketing:

One of the more popular types of home businesses that you will come across is Multi Level Marketing (MLM) more frequently referred to as Network Marketing these days. There are many different Network Marketing companies to choose from. There have been quite a few that fall under this category that have been outright rip offs and scams that have put a bad taste in many peoples mouths just thinking about this type of business model. The truth is that this actually is a very good business model if you are committed to helping other people achieve their goals and you choose a good stable company.

The failure rate in Network Marketing is as many anti-MLM zealots like to talk about is mainly due to the low cost associated with getting involved in this type of business. The cost of entry into most Network Marketing companies means that many people who are not qualified to understand business at all are able to join, and many fail. Another thing that is not figured into the statistics is that many people join Network Marketing companies to buy the product at a discount with no intent of ever building an organization. Like any business, those who educate themselves in the industry and make a strong effort to succeed with a “Never quit” mentality can be successful with this business model. Although the failure rate is high for first year Network Marketers, those who stay committed to this type of business model for a period of 10 years or more are statistically much more wealthy than most other small business models with the average income of a 10 year veteran being well above 250,000 per year in NET profits. This is not too bad considering the cost of entry into this type of business is on average 500 dollars.

Tip:

Most people who are successful in Network Marketing are very personable, if you don’t like people this is not the business for you. Also, most successful Network Marketers have multiple income streams and earn a majority of their income through book, speaking engagements and affiliate tools that Network Marketers need to grow their business. It is never a good idea to rely on just this one income stream, Network Marketing companies close everyday or change their pay plans frequently.

Affiliate Marketing:

Many businesses are tightening up their advertising budgets and look to affiliate marketers to promote their products. If there is a product or service on the internet, then there is typically an affiliate program that you can get involved in to promote for profit.If you can dream up a product or service there is a good chance that you can find a company that has an affiliate program that you can get involved in.

Basically as an affiliate it is your job to market the product and/or services. The company will typically provide you with a special website link that you use to promote the product or service that will track your commissions. As I mentioned earlier, if you can think of it there is probably a company already in existence that will pay you commissions to promote their product on the internet. For most internet marketers this is the best place to start because there is no upfront cost associated. You don’t even need your own website. There are plenty of forums that deal with this type of business that you can participate in and get guidance that are easily found on the search engines.

If you decide to become an affiliate, honesty is the best policy. Many dishonest marketers will say just about anything in their ad copy to generate an affiliate sale. This is also something to look out for when searching for a home business opportunity as many affiliates target this Niche market, not to help you with your home business but to earn a commission. Many of these affiliates don’t actually own the product or use the services they promote. It is my opinion that if you are going to promote something then you need to stand behind the product or service. I guess I have old fashioned values and personally would never promote something that I did not believe in or use for myself.

Be A Service Provider:

This is a great type of home business. It can be as varied as your imagination. You are only limited by your own commitment to achieving success in your home business. If you enjoy carpentry for example and have a small shop, you could start a sign company or make chairs and sell them. If you enjoy quilting you could start your own quilt making business from your home. Really there is no limit as long as you have the required space and tools to do whatever it is that you want to do from home.

Some Considerations:

At the beginning of this article I mentioned that I would share some things that nobody else is telling you about starting a home business. Some of the things that most home business course promoters like to neglect to tell you about concern legal implications. If you become an Independent distributor for a company this lets them off the hook concerning many of these aspects.

Make sure you are legal in the business that you conduct. You will need to check with your local area law concerning things like business licenses. Many people neglect this one simple thing only to lose their business down the line. I recommend learning as much as you can about getting a small business started. You must also be aware of the tax implications when running your small or home business. There is a lot of new legislation being enacted right now that greatly affects home and small business owners. Please look into NEXUS and how it affects you if you sell products and services on the internet across state lines. Many states are now requiring the seller to collect the state sales tax.

How to Build Business Credit

To build business credit is as important a process of running a good business as getting new customers for your product or service. Both of them require complete devotion to your work and an urge to keep your credit rating high. The process of business credit building is a prolonged one that continues even after you have achieved a good business credit score. You need to ensure that it is maintained at that level for the years to come. You always need to be on the lookout for a bad decision that may affect your business credit report and hence, the reputation of your business. Let us have a look at some of the ways of building and maintaining your credit.

Run your Business Efficiently

By performing all the necessary groundwork, you can always come up with an effective strategy to start your business and begin your business credit journey. Typically, you should target those individuals who will be using your product and then, design a product that they will find useful. You should also take care of the monetary and recruitment aspects of your business beforehand to launch your business with gusto.

Maintaining your Business Credit

Once the business is set up, the process of business credit-building can be continued by ensuring timely payment of salaries to your employees and most importantly making all your bill payments on time. With this, you ensure that you build a good reputation for your business both within the business community and institutions evaluating your credit worthiness like banks. Timely reports of all your payments will help you along in the process of building business-credit.

Maintaining Ideal Personal Credit

Having an untainted personal bank account will also help you a great deal to build business-credit. Especially, the personal account associated with your business should be completely clean. Trustworthiness and good knowledge are the things that banks look at, while lending you money. Though, personal credit is in many ways unrelated to your business credit, having a good one always helps, when you are starting off a new venture and seeking business credit. Business failure shortly after its starts, being a common occurrence, banks like to know that they are investing in a safe individual and having a good personal record will prove to be extremely useful. Apart from this, most banks seek a personal guarantee, if you are just starting off in the business world.

The readiness of other individuals to lend you money is also a favorable factor, when you are seeking loans for your business. If other individuals from the business community are ready to provide you with a recommendation, then the same will help you greatly to build business-credit. In fact, the belief shown in you by similarly run businesses can be of great assistance in building good business credit. Remember that attaining high business credit levels is never an easy task and is usually achieved over a long period of time. But, the hard work pays off, when you are in need of financial assistance in later stages of your business.

Business Mentors

A problem shared is a problem halved. Working in partnership with a business mentor means that quite simply two people are looking at and discussing every issue. That means more solutions at higher speed delivering faster results.

Reason 2: Someone that is on your side

It is a lonely place at the top of a business. Too often there are conflicts of interest within a business so it can be hard to get good impartial advice from colleagues, clients, suppliers etc, especially when outcomes can effective them. Having an independent mentor on your side ensures that challenges can be discussed with impunity and the consequent solutions can be much more tailored towards the owners needs.

Reason 3: A source of experience and advice

Most mentors have a considerable amount of previous business experience. All this expertise can be tapped into as part of a business mentoring relationship. It is the primary thing that separates mentoring from traditional coaching. A business mentor’s experience can be used on top of traditional coaching techniques to help you and your business learn faster.

Reason 4: A different way of thinking

A well selected mentor will think in a different way to the business owner. Having different thought processes can help unlock solutions to blind spots. We all have had experiences where somebody asking something in a certain way can unlock those Eureka moments which in business terms can make all the difference.

Reason 5: Time out to tackle your problems

An hour a week spent away from the day to day talking with a business mentor is a very effective way of taking time out to focus on the business. Too often business owners are fighting fires and consequently devote very little time to concentrating on solving the underlying issues with their business. Business mentoring ensures that the time needed happens.

Reason 6: Keeps you focused on your objectives

A good business mentor will sit down with you and work out your personal and business objectives. Once these are understood your mentor will help keep you focused on them and also use them as a way to help you monitor your performance. Staying on the the tracks will mean less time is wasted and therefore the chances of you succeeding will be greatly enhanced.

Reason 7: Improvement in your long term thinking

Most business mentors are long term thinkers. They look at the challenges that a business owner and their business face and work to a long term plan to help their clients tackle them. That logical long term approach will influence the way business owners tackle all their problems and and as a result should engender in them an improved way of thinking.

Reason 8: Tackles your personal weaknesses that hold your business back

There is a huge link between personal weaknesses and business performance. Very often a business is only as good (or as bad!) as the owner’s greatest weakness. A good mentor and coach will help the business owner to identify their weaknesses and work with them to develop solutions to tackle those problems. Once personal weaknesses are identified and dealt with very often improved business performance follows.

Reason 9: Network of contacts

With experience comes contacts. An experienced mentor and coach will have an access to a large network of business contacts. Seeing the value and connecting with their network will improve your opportunities.