5 Tips for Starting a Home Based Business

Pondering what to write today and thinking maybe I could write something useful for people starting out in home based business – or maybe wanting to re-boot an existing home based business – I gave myself an exercise.

And the exercise I gave myself was this: “If someone was just setting up a home based business, what – based on my own more than 20 years of being a home based business owner – would be five tips I would give them?”

The idea was not to come up with the “top 5”; more like “5 off the top of my head”.

All my own thoughts

25 June:Working at home by Sladey via FlickrI chose not to consult my library, where I have some really useful books on the topic, or other blogs, some of which I know are full of wisdom and practical advice, or to point to some of the excellent, free guides on government-sponsored web sites in the US, Canada, the UK, Australia and no doubt other countries.

And I certainly chose not to suggest focusing on what I focused on when I set up my own home based business all those years ago, like

  • spending hours working out what configuration of computer, printer, fax machine I should get
  • spending an inordinate amount of time working on stationery design, especially what my business card should look like
  • wondering about office furniture

Those concerns have their place but there are more fundamental things I would love to have had someone point out – forcefully – to me. Mainly about the realities of business, as distinct from the tools and trappings.

So for this exercise I would draw on just my thoughts, here and now February 2011, based on my experience, and not aiming to win a competition for the “best” or “wisest” or “potentially most profitable” tips.

Here’s what I wrote down (the pic of the handwritten version shows why I did not win prizes at school for handwriting!).

5 Tips for Starting a Home Based Business5 Tips for Someone Starting a Home Based Business

  1. Know your market worth
  2. Build an order book
  3. Develop new networks
  4. Ask for help
  5. Love the business you are in

Briefly about each:

1. Know your market worth

As background, statement of the bleeding obvious: everyone comes from somewhere.

Explanation. It’s probably a reasonable statement that for most of us setting up a professional services business from home, we come from having a role, a status, probably even a title, in our previous place of business or work. They helped identify our worth to our employer or other prospective employers. Now we need to work out a fresh valuation of our worth in the market. Which in turn or as a pre-requisite requires us to work out who our market is.

2. Build an order book

I learned this from a wise, very experienced business leader, who would say – and told me that as a CEO he would say it to his team  – “don’t tell me about the business we have now. Tell me what’s in your order book for six months from now.”

This one needs strategy, planning, discipline. And it requires us to be thinking ahead and “marketing ahead”. But it’s how we can build a sustainable business.

3. Develop new networks

As my handwritten scrawl shows, the first version of this was “Build your networks”. The trouble is, while the networks we have now might sustain us for a while, our new business focus may demand, not that we trash our existing networks, but that we complement it with new networks relevant to our marketing strategy.

If you are starting your business now or giving it a re-boot, social media offers you literally unprecedented opportunities to build amazing new, and amazingly profitable, networks.

4. Ask for help

Assuming you are good at what you do (or just good at what you are good at), you should assume that your friends and former work colleagues will want to help you get business. They may not have contracts for you themselves (don’t crowd them or embarrass them by begging or cajoling) but if you can make it very clear to them what you are focused on and the sort of people you want to connect with, they will surely want to give you introductions and recommendations. Ask them! The worst they can do is say no.

5. Love the business you are in

You might, channeling Tina Turner, ask ‘What’s love got to do with it?”. My answer: A Lot! You might have started your business because you got retrenched  or just couldn’t stand where you were working. But now you’ve started it, you’d better make sure you love it, or learn to love it. Or start a different business. Or look for a job again.

Believe me, if you don’t love it, if it doesn’t get you out of bed in the morning eager to get into it, being thrilled to help your clients, you will stand a fair chance of getting bored, disillusioned and cranky enough that it will show and people will not want to do business with you. You wouldn’t want that, would you?

But wait, there’s more!

It has been a challenge, with these five tips, to restrict myself to making a brief observation on/explanation of each.

With each of them there is more that I want to share and each of them leads into other, related topics. So I’m thinking of doing a separate post on each of the five tips.

I’m also interested to know what others might offer as their 5 Tips.

So.

What are 5 tips you would give to someone starting or re-booting a home based business?

Image credit:: “25 June: Working at home” by Sladey, via Flickr (CC BY -ND 2.0)

The series: 5 Tips for Starting a Home Based Business

Tip 1: Know Your Market Worth : Starting a Home Based Business Series

Tip 2: Build an Order Book: Starting a Home Based Business Series

Tip 3: Build New Networks: 5 Tips for Starting a Home Based Business

Tip 4: Ask for Help: 5 Tips for Starting a Home Based Business

Tip 5: Love the Business You Are In: 5 Tips for Starting a Home Based Business

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About Des Walsh

I show business owners and other professionals how to navigate the social media maze and use LinkedIn effectively. I'm an author, speaker, business coach, social media strategist and LinkedIn specialist. Connect with me on LinkedIn, Google Plus and Twitter. And to stay in the loop, get my weekly Social Business Bites.

Comments

  1. franchise ownership says:

    Home based businesses are a great option to start your own business with low capital and less risk. Many people decide to begin a home based business but don’t find success. Such people can achieve success in the home based business they want to begin by using your effective tips which you have shared over here.

  2. Thanks for the tips but I don’t like the idea of home business. I tried it and succeed in home business but I don’t like to work alone. Its good to work in a good company and start your business later when you have got the experience and skills.

    Money is also important for doing business.

    • Bob, Thanks for the comment. I’m sure it’s always good to get experience. As you would be aware, these days some people don’t really have a prospect of working in any bigger company than their own, let alone a “good company”. There are a lot of people who have been pushed out of the workforce and, basically because of ageism don’t have a real prospect of being re-employed. But they have the skills and often capital to get started with a home business. If for no one else, I hope my tips are helpful to them.

  3. Hi Des, really useful tips…

    What I’m finding hard though is actually thinking of an idea I want to persue…

    Ever since I was really young I’ve been pretty entrepreneurial constantly thinking of ideas of new business ventures. I tend to get obsessed with a new idea for a couple of days and then talk myself out of it!
    I am pretty successful in my career anyway, I’m 23 years old, never been to university and am a Global Project Manager in one of the world’s largest fast moving consumer goods companies but I feel like there’s something missing – I need to create a business and be my own boss, it’s the only way I think I’m going to feel like I’ve achieved something but I’m struggling with my ideas!

    I’ve detailed my latest idea on my new blog – I thought blogging would be a good way of testing my ideas and getting other people’s thoughts towards them so would really appreciate your comments and any advice! (That goes to anyone reading this really…)

    Thanks!!

  4. Thank you for these wonderful tips and suggestions. Many times we just don’t know where to begin and I think here you have nailed it.

  5. Hi Des,

    “Love the business you are in”

    Great point.

    blessings…
    Douglas

  6. Nice post and good advice…..and never forget real contact for social life !

  7. lanka news, lanka newspapers says:

    Very innovative! thanks for sharing the tips which will prove to be very helpful in future as well not for me but for other people also.

  8. Sherry

    Great point. You’ve touched on one of the great challenges for most, maybe all, entrepreneurial people, who tend in my experience to have “too many” ideas and have to choose which one or ones to focus on. We need to be really honest with ourselves when those bright shiny things come along, recognize their attractiveness and then as you say remind ourselves about that sustainable business goal.

  9. Thanks Des. These are wonderful and thought provoking points. For me personally, it has taken three sort of frustrating years to learn one thing that I would add to your wonderful list.

    Keep focused on your cause and outcome model. Ask yourself, why am I doing this? For me, the answer was to have my own sustainable business. What does my business offer and what do I want in return? For me, it was I want to offer a product or service and be paid for that product or service. The questions go on like this . . . thinking what is my cause and outcome.

    I know this point probably seems simple but I’m one of those entrepreneurs who finds herself attracted to shiny penny ideas that may actually hinder my cause and outcome model. Sigh . . . I usually learn from them, and they probably have permitted me to get to the better place I am today but boy do they distract.

    Sherry

Trackbacks

  1. […] the overview post I wrote to launch my 5 Tips for Starting a Home Based Business series, I summarized this fourth  tip as follows: Assuming you are good at what you do (or just […]

  2. […] In this post I expand on the third in my series 5 Tips for Starting a Home Based Business: Build New Networks […]

  3. […] my post earlier this month 5 Tips for Starting a Home Based Business the second tip was Build an Order […]

  4. […] my post last week 5 Tips for Starting a Home Based Business the first tip was Know your market […]