Small Business Start UpsAdvantages of a Home Based BusinessWhy do so many small business start ups fail? "Businesses start and fail in the United States at an increasingly staggering rate", says Michael E Gerber author of The E-Myth Revisited in his best selling book for owners of small businesses.By the end of the first year some 40% will close down, he says, and only two of every ten small businesses last more than five years. Why is this? Gerber says that most 'would be entrepreneurs' spend too much time on day to day tasks - and not enough time doing the strategic work needed to develop their businesses. Small business owners need to keep one eye on making money today, and the other eye on developing the business long-term, he says. While I have no doubt that Gerber is correct, my view is that you have a much better chance of success if you set up a part time, low cost, home based business. Here's why. Gerber is talking about opening a small business as a full time activity, with all the costs associated with setting up an office or workshop away from your home. However, a home based business enables you to get going with a much lower cost base. Also, if you are making extra money from home on a part time basis, this allows you to keep on with a part or full time day job - maybe as an employee. Working part time from home, with lower costs and continuing employment income, means that you have time on your side. Sure, you still need to achieve your income goals as soon as possible, but you have much less financial pressure than opening a full time tradional offline local business. However, you can still make good use of EMyth principles to improve your chances of building a successful home based business. The key points to understand are: 1 Set out clear and specific goals for your business 2 Ensure you allocate time on action steps to achieve these goals 3 Develop tested and proven procedures to help you progress My six years experience as an EMyth Small Business Coach is a major reason why I recommend that everyone who is looking at homebased small business start ups looks for a proven business model that has already worked well for many other people. Starting from scratch with a completely new idea increases your chances of failure. Return from Small Business Start Ups to Home Based Business Start Up Return to Successful Home Based Business |
You can read some great advice on real home based businesses in our series of expert interviews
Skip McGrath, author of many books including The Complete eBay Marketing System talks about how a novice can get started selling on eBay.
Debra Gould, the 'Staging Diva' provides great tips for a business focused on improving the internal decor of homes making them easier to sell.
Sylvia Jaumann, author of Starting & Running Your Own Bookkeeping Business, advises on starting a bookkeeping business from home.
Teena Rose, author of The Ultimate Resource to Building a $100,000 Resume-Writing Business, explains why resume writing is in demand in tough economic times.
Dr Alicia Holland-Johnson, author of Becoming a Better Tutor, explains what subject areas are in demand and how to find customers.
Sam Knowlton, who runs the CourierPros web site with Bob Lavendusky, advises how a freelance courier can compete against national courier companies.
Joe Waynick, author of Internet Bookselling Made Easy! How to Earn a Living Selling Used Books Online, advises how to get started by selling books you already own.
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