How to start a business from home, or how to start a home-based business is probably the dream of most employees. While reasons vary, the result, on the other hand, doesn’t really change.
If you take time and observe those who start their own businesses, something will eventually become evident, most of these folks fail down the road, and the reason for their failure is quite the same, ignorance. They don’t do the right thing or have the wrong approach.
There are many types of businesses one can start from home, but in this article, I have personally selected the ones I believe to be highly scalable. By scalable I mean, ability to increase in capacity and revenue with relative ease.
Start your business from scratch
Whenever you come across someone contemplating to go into business for himself, this is probably where he is likely to start, and this is also the most difficult way to start a business.
Starting a business from scratch goes well beyond your idea. In order to build a successful business, every business person must comply with the following requirements.
- Cash flow
These requirements form what Robert Kiyosaki called the B-I Triangle. In this article, I’m going to provide you with superficial information concerning these requirements, but for further information, I strongly recommend you read the Cashflow Quadrants by Robert Kiyosaki.
This is quite easy to implement although most people approach the business mission the wrong way. Making money is undoubtedly the ultimate goal in every business, but a mission statement revolving around making money only will surely weaken the business in the long term.
The mission statement must revolve around the customer’s satisfaction rather than money. As I have already said this is quite easy to implement. Writing a mission statement can be done in less than a day.
Leadership skills are not only meant to businessmen with thousands of employees. The fact that you are in business for yourself it is necessary to develop leadership skills, even if you are self-employed. As long as you have customers to care about, you’ve got to act as a leader rather than a mere salesperson.
Starting a business from scratch would have been easier if the competence of others wasn’t needed. A business team shouldn’t be confused with a bunch of employees. Employees are meant to be told what to do, in other words, employees are meant to be controlled.
A business team, on the other hand, are not meant to be controlled, and no business owner should try to do so, because these people can cause serious damage in business without the notice of the owner.
A business team is a group of experts in the area such as accounting, legal, finance, the stock market, and so on. These areas are essential to any business.
Cash Flow is simply the ins and outs flow of money in any business. While the concept seems simplistic, It takes an expert in cash flow management to know exactly how much money is going out from the business, and how much is coming in.
The way a business communicates will surely determine if it’s product is going unnoticed by the prospects or not. Communication, in this case, is nothing else but marketing.
As you obviously know, promoting your product or your brand the right way will eventually lead to success.
A business can be compared to the human body. The human body is made up of systems such as the digestive system, the respiratory system, and so on. The point I’m trying to make here is the fact that if one of the human body’s systems break or malfunction, the whole body is likely to be affected, and the same applies to business. The following are some systems essential to any business.
- Product development
- Office operations
- Order processing
- Customer service
- It systems
- Human resources
As I have already said, business systems are interconnected, whenever one breaks the whole business will be affected.
As I have already said starting a business from scratch goes far beyond a business idea. Having a legal team will eventually spare your business from legal issues such as:
- Intellectual property
- Business structure
You may be wondering why the product section comes last on the ladder, and the answer is simple. The business idea, product or service is simply the tip of the iceberg.
What I mean is, no matter how good your product is, you are likely to fail unless you comply with the rest of the requirements. Robert Kiyosaki said it well by saying you can make a better hamburger than McDonald’s but McDonald’s will still win over you, because the company reputation goes far beyond making Hamburger.
Here’s the problem
Unlike conventional belief, starting a business from scratch might not be the right decision for everyone. It takes more than enthusiasm.
Complying with the requirements mentioned in this article takes time and money. I personally don’t recommend starting a business from scratch unless one has money and business experience.
The Way out
I believe these facts to be enough to deceive some aspiring entrepreneurs, especially those who strongly believe in their ideas, in fact, I don’t suggest to give up on your idea, but I do suggest to not work on it unless you have enough money for your own, and business experience.
With enough money and business experience, you will be more valuable in the marketplace, to banks, investors, and these institutions are essential to whoever contemplates building a business from scratch.
The best way to start a business from home
The best approach to start a business from home is not to start one from scratch but to develop one through a proven business system. What I mean is, instead of going from zero, you are better off to leverage your time and energy by developing your business through a proven business system.
What is a proven business system?
A proven business system is a business model that allows you to bypass different requirements encountered by those who start a business from scratch, and some business systems are:
- Network marketing
- Affiliate marketing
- Matched betting if you live in the UK and Ireland.
- Binary options trading
These are some proven business systems through which you can develop a successful business without going through the constraints of starting one from scratch.
Why do I recommend a proven business system
As I have already said, starting a business from scratch goes far beyond your business idea. The excitement of having a good business idea eventually leads to frustration unless one has money and experience in order to comply with the requirements of building a successful business from scratch.
A proven business system, on the other hand, doesn’t require an important investment, with less than $500 as an initial investment, and a willingness to learn, one can build a profitable business in no time.