Although no one can guarantee that your
home-based business will bring you the fame and fortune you hope it will, if
you work hard, price your products and services right, and keep your customers
satisfied, you stand a good chance of doing just that. The results you get out
of your business are a direct result of the work you put into it.
DO WHAT YOU LOVE
To do what you love, you first have to know
what kind of work you really want to do. This requires intense introspection
and an understanding of which kinds of work get your creative juices flowing
and which kinds dry them up. Doing what you love also sometimes requires that
you ignore what other people want you to do for a living. You may decide, for
example, that you'd really like to start a recording studio in your home, but
your spouse or best friend may think something more practical, such as buying
into a fast-food franchise, makes more sense. Ultimately, you must decide what
you're going to do for a living — even if it means you can't work at home.
TREAT YOUR BUSINESS LIKE A BUSINESS
If you want your business to be a business —
an organization that generates the kind of money you need to become financially
independent — you have to treat it like one, not like a hobby or a momentary
fling. Here are some ideas:
•
Set aside a real home
office — not just a closet or a shelf — exclusively for your business.
•
Make an investment in business
equipment and supplies: a decent computer, extra phone lines, a fax machine,
and whatever else you decide you need to run your operation.
•
Create a marketing plan and
marketing materials.
•
Publicize your company's
products and services to a wide audience of potential customers and clients.
•
Build a strong customer
base and make plans for future growth.
BECOME AN EXPERT
People respect those who know more than they
do. By specializing, you assume the role of a presumed expert, even if you've
just started your business. It makes good business sense for your clients to
hire an expert instead of someone less experienced. By avoiding the mistakes
and dead ends that someone with less experience may make, your clients could
end up spending less money by hiring you — even if your hourly rates are
higher.
CHARGE WHAT YOU'RE WORTH
Here's an instant going-out-of-business plan,
no matter how hard you work: Charge your customers less than you're worth. Why
would you do that? Well, some people charge less than they're worth because
they don't realize exactly how much they are worth. Others
charge less than they're worth because they are embarrassed or afraid to ask
for an amount that reflects their true worth. Whatever the reason, if you don't
get paid what you're worth, you are putting your business at risk.
If you don't know what you're worth, find out
what other companies charge for similar products or services by researching
catalogs, price lists, stores, and e-commerce and auction Web sites. From
there, develop a pricing or fee structure that will help you attain your personal
goals.
MANAGE YOUR CASH FLOW
Cash, or the lack of it, is one of the key
indicators of a company's success over the long run. If you have cash, you can
buy and stock new products for your customers, develop innovative new services
for your clients, pay for your day-to-day operations, and expand your
operations. If you don't have cash, your business will certainly suffer, and so
will your customers and clients.
It's not enough to simply watch your cash
flow — the money going in and out of your business — you've also got to manage it.
This means looking to the future, planning and scheduling your projected cash
inflows and outflows, billing quickly, staying on top of money owed you, and
paying attention to the money that goes in and out of your business.
BUILD A SOLID CUSTOMER BASE
Building a solid customer base is much easier
said than done. At the heart of the process is creating an organization that
values its current customers and goes out of its way to ensure their
satisfaction and happiness. Customers are smart — they can tell whether they
are high or low on a company's list of priorities. If they sense that you don't
care much about whether they do business with you, they'll likely jump ship as
soon as another company that really does care about them comes along.
ASK FOR REFERRALS
Word-of-mouth referrals are probably the
least expensive and the most effective way of getting new business. This makes
referrals the most important way for home-based businesses to market
themselves. Here are several of the best ways of earning great referrals from
customers:
•
Do great work: When you do great work, your clients are happy to
give you great referrals. Do less-than-great work, and you'll be lucky to get
any referrals.
•
Do your work on time
and within budget: If you consistently
deliver on your promises, you'll soon have more business than you could ever
imagine possible. And you'll earn your clients' referrals.
•
Keep your clients well
informed: When clients spend their money on
you, they want to be kept apprised of your progress, not only to stay in touch
with the project, but also to keep a watchful eye out for problems before they
get out of hand. Do your clients a favor, and keep them informed about your
project's progress. Whether the news is good or bad, your clients and customers
will appreciate your forthrightness and candor.
•
Be dependable: If anything, you should always keep your word —
even when it hurts. If you promise to do something, do everything in your power
to keep your promise, no matter what it takes to follow through on it.
•
Be flexible: Customers and clients appreciate vendors who are
flexible and willing to meet their needs, no matter what those needs are. Not
only that, but also, they will pay more for that flexibility. Think what you
can do in your business to better meet your customers' needs.
•
Thank your clients for
their referrals: Everyone likes to be
appreciated for what they do. Your customers are no different. Be sure to thank
them for their referrals with a hand-signed card or small gift.
