Believe it or not, there are several different kinds of home based businesses, and while most have the same goal of making money, the end goal of a home based business can vary greatly depending on what you, the entrepreneur, is looking to get out of it.
You may want to start a home based business that will start small and remain small as a way to supplement your main income (e.g. don't quit your day job). This type of business strategy has the benefit of not putting a ton of pressure on your home business to succeed, but also should not simply be thought of as a hobby. Many home businesses can be very successful even if they never grow to a massive size, and keep in mind that any small business no matter how large or small will still require a lot of hard work.
Alternately, you may want to start a small business that will hopefully blossom into a large business someday. Whether the end goal is a buyout, IPO or simply a large privately help business; this is probably the most popular goal for a startup because it potentially poses the greatest reward, but it also requires the greatest risk. Here's a closer look at the two main strategies that will hopefully give you a good idea of what to expect as you start your new home based business.
Build An Empire?
The entrepreneurial spirit required for anyone to successfully launch a home business will often be accompanied by the desire to keep growing and expanding the business as far as the idea or business model will allow. This is mainly due to the fact that the skill set required to be a successful entrepreneur is often the same skill set that is exhibited by what is referred to as "serial entrepreneurs". Basically, the drive for success that allows a small business owner to never settle for what's safe and easy, but to keep reaching for the next rung on the ladder. And, once the business grows to it's maximum potential, serial entrepreneurs move on and start the next big thing.
Building a so-called empire out of your small business doesn't mean you have to become the next Microsoft or Google, but rather that you will build a business that keeps growing and giving life to new businesses and ideas. It's a noble pursuit, but you should keep in mind that it will be tough going for 99% of people. The odds of a business actually achieving massive success are very small, so if that's your goal you need to set smaller, incremental goals along the way to preserve your sanity. Making a billion dollars is wonderful, but making a million dollars is still something to be proud of in your business and should be thought of as a stepping stone along the way, rather than a shortfall of your ultimate goal.
Ego can also be the death of many small businesses. When you raise your initial funds and you own a large percentage of your company, it will be very difficult to continue to sell of percentages of the business as it grows and you bring in more and more investors, but the thing to keep in mind is that it's better to own a small percentage of a very large corporation that to own a large percent of something that fizzles out because of lack of funding.
Keep It Small?
The desire to keep a small business relatively small should never be looked down upon. There is room for only a few very large companies in any given market, but there will always be room for plenty of respectable sized businesses that do very well in that same market. In Seattle, this is often referred to as "the Starbucks effect". Once Starbucks reached its massive success, there was a sub-industry created that allowed for hundreds of smaller coffee companies to bubble up and make a lot of money, while preserving the values and quality associated with a home town coffee shop. This is not to say that every large business is a sellout and only the small guys have integrity and quality, but there is a certain loyalty and respect associated with boutique businesses in any industry that can be just as rewarding as being the top dog. If coffee isn't your thing, consider some of your favorite bands on independent music labels, your favorite blogs that aren't associated with major publications, your local farmer's market vs. the chain grocery store, etc. You can still make a great amount of money staying small, and often you'll be able to continue doing things your way, rather than having to do everything in order to please the shareholders.
In the end, the choice is yours, but know that whichever route you choose, it won't be easy going. Starting a small business is not something to be taken lightly, as it will consume a great amount of your time and resources, but whether you grow it to a major corporation or keep it as a boutique small business, the energy you invest will often payoff if you're smart and you follow the advice of the successful entrepreneurs that have gone before you.
Mon, 04/2/2012 - 01:56 AM | viewed 429 times
In February, 2012, Facebook held its 'fMC Conference' which introduced upcoming features and changes to the site, including Timeline for Pages. All of these changes impact the way an entrepreneur or smb can best utilize their Facebook presence to increase traffic, interact with fans, and ultimately, convert these fans into customers. Here we'll take a closer look at the changes to Facebook, how you can use the new features to your advantage as part of your business plan, and some helpful tips on creating a successful Facebook promotion.
Sat, 03/10/2012 - 05:35 PM | viewed 502 times
In the initial stages of a business startup, most entrepreneurs recognize that they'll need the expertise of an accountant at various times, but few realize that they'll no doubt need the help of another professional, an attorney. Their logic would be that they don't plan on breaking the law or getting sued, so legal services aren't necessary. The truth is quite the contrary, however.
Sun, 03/4/2012 - 01:54 PM | viewed 541 times
Now that you've developed a great startup concept, and you're in the business plan development stage, the time has arrived to come up with the right name for your new endeavor. There are a number of differing theories on what makes a great business name, but one thing is certain, choosing the right name can play a big part in how your business is perceived by your customers, and it can make or break your image.
Sat, 03/3/2012 - 12:55 PM | viewed 415 times
On average, roughly 600,000 Americans start new businesses each year. If you're one of the millions more contemplating taking that giant step into business ownership, don't let fear of the unknown stop you. Some of the stumbling blocks for would-be entrepreneurs include indecision about the right kind of business, a fear of putting their money and time into a business that fails, or they may simply have no idea where to start. Generating an idea for a small business isn't always easy, but with some good advice and common sense, you can learn how to choose a viable concept.
Thu, 03/1/2012 - 12:16 PM | viewed 627 times
If you're a small business owner or an entrepreneur involved in your first startup, you're well aware of the impact that successful Facebook marketing can have on your bottom line. Finding your way through the maze of available apps and tools is time-consuming, tedious work. If you're on the hunt for the latest and greatest ways to reach a larger audience and build your business, check out our recommended Facebook tools and apps that are specifically geared toward taking full advantage of your fan page.
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