ANY business is going to require money upfront to be successful – whether you have a concept and develop it yourself as a brand and a business, or whether you BUY into someone else’s brand. Believing that you can start a business without any money is a bad decision! Interestingly, this is the BIGGEST difference between men and women who start businesses. MEN raise the capital, even if it’s $1,000 to start. Women try to start a business with no capital, struggle, get frustrated, and quit. Some say that men are in business to make money and women are in business to make a living — maybe this is why men thrive and women oftentimes just survive!
If you want to start a business, you will need money, period. So choosing to buy into someone else’s brand requires that you are smart and ask the right questions to make sure the business is not a scam. Some of those questions need to be asked of yourself!
I have two businesses. One is my own brand and one is someone else’s. Neither are scams, and both have been profitable, even in 2008! In addition, I know several many who have invested in Multi Level Marketing brands and are VERY successful. Becoming self-employed requires that you are willing to do whatever it takes to grow your business!
Consider:
1- How comfortable am I with sales? Do I understand the sales process and how to close a sale? If you are not comfortable doing this, you will struggle. Let’s face it. In big companies, someone else does the sales, but as a solo-preneur, you close the sales.
2- Do I believe in the product? When you use, love, and believe in a product, it is easier to sell. Do not decide to start a business because of the idea that you will get rich quickly. Start because you believe in your business, and the money will follow.
3- What kind of training and support will I get? If you have decided to invest in a brand, find out what the investment will get you. Any good company will have training and support sessions and phone calls to help you succeed. Check out The Direct Selling Association and see if the company is registered and referred. Talk to a REAL person and find out.
4- How will I develop a business plan? Whether it is your own concept or not, having a 1-, 3-, and 5-year business plan is key to success. Getting support from the SBA or local non-profit orgs that help women start businesses is a great way to learn how to do this.
5- Am I afraid of the numbers? You have to sit down and work out the numbers to figure out how the business will be profitable for you. If you sell one piece of jewelry, one lipstick, one hour of your service, one gadget, you have to consider the TIME you put in to make the sale. That demonstrates real value. Better yet, work your way backwards. Figure out how much you need (and then, how much you want) to make every month. Work your way back with the numbers to figure out what it will take.
6- Am I willing to do whatever it takes to make it work? Starting your own business takes discipline, hard work, and the willingness to push beyond your comfort zone. Are you up for it?
7- Do I really want a business, or is this just a hobby? If you truly want to be self-employed, you need to treat it like a business, not a hobby. That means investing in yourself and the business to grow it, even when money is tight. Hobbyists only invest when they have extra cash.
Ann M. Evanston is a “Chief Breakthrough Officer” teaching other Business Warriors how to slow down, and find the most unique part of their business that makes them stand out among the crowd. She has been named one of the top marketing consultants by About.com, is a guest blogger for Showcasing Women and takes pride in moving you from “blah, blah, blah” to “BOOM, BOOM. BOOM!”
Fantastic article. I particularly see identify #7 in a lot of women’s businesses. If it’s not treated as a business it is so easy to not invest the necessary time as well.
As women who work from home we love the flexibility of setting our hours, but to often those hours never come. Setting up a schedule of the number of hours you’ll work in a week and then sticking to it is a big key to success.
Another key I have found is consistently doing something every day related to my business. Thursday’s are busy days around my house. It’s the day that kids have dance lessons, we have homeschool co-op etc. But I still plan plan on spending at least 30 minutes that day building relationships with customers, etc. Then I sneak in an extra hour when I can on that day.
So create a plan and stick to it, but allow some flexibility in what is done when and where
Leisa Watkins
http://wealthwisdomandsuccess.com
enRICHing tools, enRICHing ideas, enRICHing resources, enRICHing people.
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This is such an important post because some of us are easily overwhelmed and this break down outlines fears that can be addressed and overcome with solid-to-the-point information.
Thank you ~
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Lots to consider, Ann, some that I did not before I started, but have come across while in business and have resolved. The only exception is the sales part and I struggle with that, but am getting better with help from others and growing experiences. I like the distinction between a hobbyist and a business owner… I definitely make is as a business owner, given what is happening with my funds… lol
Great post, Ann. I love all of it, especially that part about being comfortable with sales. As a business owner, you chief job is to generate sales. A lot of small business owners are not comfortable with this, but it still must be mastered. Great job putting it as a consideration right at the top! I come across lots of people who say they have a business, but what they really have is a glorified hobby. They’re not licensed, they have no insurance, they don’t pay taxes appropriately, etc. Some move to full-fledged business ownership, but others do not once they see all of the paperwork involved. After nearly 11 years in business, I can say that iI=t’s a lot, but it can be done, and the pay off is fantastic. Thanks again for a great post!
Right to the point! It took me 2 years to finally realize about the importance of sales. I also read somewhere that we all start as technicians at first; we’re good at something, but to really make it work as a business requires so much more.
Ann, you nailed this topic. I wish every person thinking about starting a home-based business could read it.
Feel free to share Betty! You are an amazing example of “you are he brand”!
Very well stated. I wish everyone had this list and a few more check points before they begin. It would save a lot of people from the heartache and financial losses. As a 25 year veteran in the tax business, I know a lot of technicians who think they are business people. Sales is hard for all but really can stretch and grow the person if they take the time and effort to learn to sell and all there is to having a thriving business. Best Wishes to anyone who is thinking of starting a business. Life is never dull when you own a business.
Ann, great, timely (and timeless) must-know information for anyone who is considering home-based entrepreneurship.
Joshua Zerkel, CPO
Productivity Strategist
http://www.customlivingsolutions.com
Some very important, useful ideas and tips. I think i did think about many of these but did not actually sit down and implement a plan. I probably should have
Great post – how have I missed this one! Anyway YES to most of them. I am FINALLY comfortable with sales – though I got training to make it that way – and it’s coming together at last. 4 – err no I didn’t as this kind of happened to me but am working on it and getting better at the planning and yes, getting help and advise again. 7 and 7 definitely – more and more each day. Love being in business and now have big plans!
Louise Edington
Breaking Through Online Frontiers
http://louiseedington.com