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Four Key Considerations for Starting a Home Business

Dec 4, 2007
There are more than a few working men and women who wish that they could leave the daily grind for a lower-stress, non-commuting job at home. While some briefly entertain the thought of starting a home business and then dismiss it, others decide that a home business idea is worth closer examination. If you do decide to take the plunge and leave your old career behind, there are a few things you should keep in mind as you launch your business:

1. Be prepared to lose money. If you expect to get rich overnight, you may be in for a big disappointment. It takes time to get the word around, advertise your business and build up a regular clientele. Developing a good reputation does not happen overnight. You should not count on making the kind of living you have been used to in your old job. If you're committed to making your business work, then consider either downsizing your home or cutting your living expenses. A part time job in the evenings or on weekends will help make up for lost income until your business begins to generate serious revenue.

2. Give your business time to grow. Even the best home business idea needs time to blossom and flourish. Success may not come as quickly as you hope. Instead of packing it in as soon as disappointment hits, set a time limit for success. This time limit will vary from business owner to business owner. It will depend upon the amount of financial strain that you'll be able to bear until you start to generate real profit. Before launching your home business, decide how much money you can afford to lose, how little money you can get by on and for how long. If you have a spouse or partner who is making a good income or you have substantial savings, you will be better equipped to deal with losses at the beginning of your venture. Set your time limit accordingly

3. Don't try to do something you aren't qualified to do. For example, if you are a savvy designer and smart with computers, you may be able to start a successful home-based business doing web design. But if your expertise lies mainly in design and less in the area of search engine optimization, don't attempt to do a job for clients looking for high search engine rankings. If you are a hair stylist who has never been trained in giving spiral perms, don't let your home-based business customers be your first spiral perm "guinea pigs." You'll likely be ruining your reputation as a business person and sealing the demise of your business.

4. Be willing to refer your clients to someone else. This may seem like a tough pill to swallow, but there will come a time that you'll have to refer a client to someone else. While this doesn't seem to make good business sense, it actually demonstrates that you have integrity and are truly looking out for their best interests.

The best opportunities are those that have received careful forethought and considerable planning. A successful business does not happen by accident. Finding success in a home business does not require extensive education or major life experience either. It simply takes a willingness to learn from every mistake and accept failure as part of that learning process. When you start a home business, you'll find that you learn as you go and that being prepared for the ups and downs will greatly increase your chances of developing a thriving business.
About the Author
Tom McMullen writes articles about home business. You can find more of his articles at:

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