What To Look For In a Home Base Business
“Steve, I want to start a home based business but don’t know which way to go. What should I look for to make a good decision?”
I’ve been asked that several times over and therefore, have created some important criteria for you to consider.
There’s a lot of common sense here, however, there is the factor of what you don’t know that you don’t know. So, I’ll make this as simple and straight forward as I possibly can. It may seem like a lot, but when you break it down, it’s probably exactly what you want in a good business decision.
Here we go in no particular order.
Product: It’s important that you like the product and it’s of high value to your customers.
Autoship: Autoship is when the company requires you to buy a set amount of products or spend a set amount of money toward products or services every month. This can be a hardship in your business especially when you’re getting started. It’s one of the greatest reasons for attrition. You want to avoid this if possible.
Demand: You want to make sure your product is not a passing trend. It should be a product that a large enough market will want your product not only now but years to come.
Price Point: While there are many products on the market that offer small price points, in return you receive small commissions. These commissions are often not enough to give you the income you desire until and unless you have thousands of customers. I recommend a higher price point still making sure the product is worth the value to the consumer. This way you earn higher commissions that you can now utilize in a more meaningful way.
International Market: You open more opportunities for business growth when your product is open to the world, not just in your own country.
Stability and Age of Company: While entrepreneurs have a passion for risk/reward and therefore often get caught up in the emotion of joining a company upon their “launch”, it’s not a business move I recommend. I would move you toward a company that’s been past the initial growing pains, changes and challenges that’s inevitable with a new start up. Look for a company who is solid in their years and matured.
Better Business Rating: While not all businesses are required to register their entity with the BBB, it’s a nice vote of confidence when consumers can see an A+ rating. Check them out.
Debt Free Company: When a company is debt free, you can have a better feeling that it’s a smooth running ship and under good management. If it’s a mature business with years under it’s belt, it should give you confidence that it’s solid (although there’s never any guarantees) when there’s no debt attached to it.
Policies and Procedures/Terms and Conditions: READ THEM. These are the rules of which you have to follow in order to build a business with their name and products. Things to look for that will be important are:
- Restrictions in terms of ways you can market including, but not limited to, using their name, testimonies, websites, logos, etc.
- Whether you can market other products from other companies. Multiple streams of income may be important to you.
- Loss of rank or position. You want to keep your rank once you achieve it.
Be aware that some companies do not allow you to use the name of their product in your online and published marketing. This puts you in a handicapped position out the gate because it’s like being a secret business owner. You want to be proud of your products and be able to advertise what you have to offer without being restricted as to the “name of your product” you represent.
How You Are Paid: Understand how soon and by what method are you paid.
Resources and Tools: Find out what tools and resources are available to help you market your business. These will be business expenses and it’s nice to know you don’t have to be creative, the work is done for you. Look for brochures, flyers, business cards, videos, websites, informational calls for prospects, company clothing, etc.
NOTE: It’s standard for the company to charge a fee, usually monthly or annually, for your own website as it requires hosting on their part. However, you should also have access to a company website that you don’t have to pay for in which you can assist customers in making their purchases where you still receive commissions and credit for the sale.
Support and Community: While you’re in business FOR yourself, you don’t want to be in business BY yourself. There’s too many times you’ll want to ask a question, receive support, mastermind and brainstorm, and even share what you’re doing with others in your company and having a community online or offline will be important to your emotional and tactical application of building your business.
Education: See what’s available to you in terms of learning how to market your business. This would be the tactical application of your marketing pieces and strategies to acquire new customers and/or recruits for leverage into your business. Note: in this day and age, there’s no reason to allow yourself to be uneducated. There’s many programs, courses and training platforms outside of ANY company’s training that you’ll be able to tap into.
So these are the key factors to give you the best results for long term stability and growth in your home based business.
All The Best,
PS: If you’d like reach out to me to see what I’m doing in the home based industry, feel free. I’d love to chat with you.