How can I start a home business?
If the idea of owning and operating a small business is your idea of a fulfilling dream then you are definitely in good company. Many of us have taken hold of the opportunity and started our own business, this doesn’t mean you need to create the next Subway or your own pair of sneakers a la Nike. In stead we’ve decided to do what we love, and take what was once a hobby and turn that into a small recurring income.
Etsy shops. Print on demand outlets and other opportunities all allow you to quickly and easily get your business going.
But are you ready to begin?
What makes a successful small business?
What will make your small business successful is the knowledge and motivation to treat it like a business.
This is the number one reason why most business fail.
Having the will and determination to start your own business isn’t what makes or breaks a new company.
What is a small business plan?
The sba.gov has tools to help get your business off the ground. Whether you can keep it up in another thing.
Their website is UScentric but the knowledge that they share is pretty universal.
So what exactly is a business plan?
As described by the sba.gov:
The business plan generally projects 3-5 years ahead and outlines the route a company intends to take to reach its yearly milestones, including revenue projections. A well thought out plan also helps you to step-back and think objectively about the key elements of your business venture and informs your decision-making on a regular basis.
This plan acts like a road map for you as you take your business into the future. And no matter how small you plan your business, having a plan is something your should not neglect.
How do I start a small business?
This question is probably one that you will be asking yourself time and time again. It is the first one you have when you have a great idea.
You have “great ideas” but you don’t know what you need to do.
And if you try to run before you even learn to walk you will fail.
Make sure you are honest about your expectations. It isn’t bad to shoot for the moon, but be aware that you will very likely fall short.
How can I make my business successful?
Here are a few rules and questions you should follow before you set out. Answer them honestly, if you don’t you might find yourself in an uncomfortable situation.
- What do you want and expect from your business?
- Can you hold yourself accountable?
- Are you willing to sacrifice some short term profits for long term success?
- Can you spot and grasp opportunities as they appear?
- Can you learn from past success or failure?
- Are you willing and capable to learn new skills?
- Are you intimidated by new technology or willing to utilize it?
- Are you willing to look for outside support?
- Can you set and measure your financial goals?
- Are you comfortable with an inconsistent income?
Will my business fail?
There are no guarantees you can fall back on. Starting a business is hard, and it takes a lot of work and determination. This is proportional to the size, but even a small business is a lot of work. Especially when you first start out.
Here are some general statistics that you may or may not want to refer to:
Are small businesses profitable?
- Nearly 30% of all small businesses loose money on a steady basis
- Only 30% of small businesses break even
- 40% of all businesses are profitable.
Are small businesses sustainable?
- Within the first year half of all small business have failed.
- Within the first five years of their existence 95% of all small businesses have failed.
- Statistically your solopreneurial endeavors only have a 37% chance to survival in the first four years.
- Less than 10% of all small businesses survive past the first decade.
Are these numbers for real? Unfortunate as it may appear there is a lot standing in your way when you start a small business. And it isn’t the competition.
Things you will be faced with:
- Your own skill, and the ability to learn new ones
- Your ability to plan and organize
- Your motivation even in face of challenge
Here links to further reference the topic and make an informed decision before you start a small business.
- The U.S. Small Business Administration (SBA.gov)
- CNN Small Business (News and related topics)
- Forbes.com Five Reasons 8 Out Of 10 Businesses Fail
- smallbiztrends.com used for some statistical research.