Online Home Business Survival Plan
When you are starting your own online home business there is no guarantee that your business is going to survive especially in today’s fast-paced business world.
Sadly nearly half of all small businesses fail within the first two years of operation. Inadequate planning is the number one reason for business failure and the second reason is under-capitalization.
Before you take drastic steps like mortgaging your house or go into debt financing your business you need to know if your business is going to do more than survive, you want to know if it is good enough to thrive!
Take a look at these three things successful online home businesses, that have stayed in business for five years or longer, have in common:
Firstly, The Idea:
Every successful online home business start-up always starts with an idea. It is something that makes your business stand out from all the rest – so how do you know if you’ve got a good idea?
If you can answer yes to any of the following questions you have probably got a good idea:
– Does your idea provide the solution to a significant problem for your target market?
– Does it satisfy a need or want?
– Does it create an opportunity?
You’ll find that the most successful online home businesses either fix problems (either real or perceived) or they increase your customer’s pleasure. Plus they create a repeat need for a product or service among the target market.
Secondly, The market:
You increase your chances of survival if you can answer the following questions with a yes:
– Is there already a market for your product or service? It is much easier to fill a need than trying to create an entirely new market.
– Can your target market afford to buy your products or services? If they can’t afford it, it does not matter how great it is, you will not sell any!
– Will your target market perceive your product or service as valuable? If they want it, but do not think it is worth what you are selling it for, you will not make any sales.
Thirdly, Your ability:
In order to be able to consistently provide your products or services to your target market, do you have the resources, the people and the knowledge? Are you able to maintain a competitive advantage and do you have enough manpower? Are you able to purchase the supplies and materials you need over the long run?
Creating a solid business plan is always your first step for business survival. Do not spend all the time creating a business plan and then toss it in the bottom drawer of your desk. It is important that your business plan is a living roadmap that helps you make sure you are on course and reaching the goals that you set for your online home business.
Your second step to online home business survival is getting enough financing. Whilst the term “bootstrap entrepreneur” describes most small business owners, vital to your success is having enough capital to be able to keep your business afloat.
Make sure you are being realistic about costs and expenditures when you are creating your financial analysis of your business so that you give yourself the cushion you need to succeed.
As a guide use other successful business models. Look around when you are getting started and find what businesses are successful. Find out why and what is it they are doing that is working. What attributes do you admire and why? If you are modeling someone who is already successful you stand a better chance of succeeding.
Locate a mentor. No one does everything well but most entrepreneurs have great skills and abilities. You’re probably already aware of what your strengths and weaknesses are, but if not use of the many resources and tools that can help you figure it out. Find a mentor who can help you either build your skills in your weaker areas or offer advice for getting what you need, rather than ignoring your weaknesses.
By taking the time to plan for business survival you could be creating a legacy that will be enjoyed by future generations and that other entrepreneurs will look at as a model for building their own online home business.
Filed under: online home business
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