If you are looking for an alternative to your current situation,and thinking about starting a home based business, it’s important to keep the end goal in mind right from the start. If you choose a business solely based on how much money you can make, you may end up with the long term fulfillment you are seeking.
Here are two very important factors to consider when looking for a home based business that will make you happy and rich.
1. There must be Passion. Choose a product you believe in wholeheartedly and will use and recommend even if there was no business opportunity attached. Enjoying what you do will make every day fun. Here are a few good questions to ask yourself before getting started in any business. Be as truthful as possible about the answers.
Would you buy the product even there was no business opportunity attached?
Does the product improve your lifestyle or well-being?
Does this product really benefit you and your family or contribute to helping others in some way?
Can you purchase a similar product elsewhere for less money?
If you stop the business in 5 years, will you still be using the product 20 years from now?
Is the product something you feel passionate about, or something you feel is important to have in your life or even on a global level?
If you answered yes to all those questions, you are off to a good start. Still, even if you love something, in order to make a business out of it, it has to make financial sense. Passion and profit are equally important.
2. There must be Profit. Consider the amount of customers you need in one month in order to cover your current living expenses. How much do you make per sale up front? Does the payplan allow you to leverage other people?
To figure out what it will take to turn a profit and cover your monthly expenses, you may need to do some ‘reverse engineering’. Start with how much you need to live on and work backwards from there. Here are some more questions to ask yourself. Write the answers out on a sheet of paper and play with the numbers if you have to.
How much money do I need to live comfortably?
How much money do I want to earn from this business in my first month?
How much do I want to be earning monthly from this business after 1 year?
How much do I want to earn monthly from this business 3 years from now?
How much commission do I earn from one ‘new’ customer?
How many ‘new’ customers do I need per month to cover all my expenses?
How much do I earn residually from each ‘recurring’ customer?
How many ‘recurring’ customers do I need to cover all my monthly expenses?
Is my product something people will honestly reorder month after month, even if they are not making money?
Once you figure out how much you need or want to make, and exactly how many customers that will require, you can plan out how many people you need to talk to daily in order to make that happen.
If your goal is $2000 in your first month, and you earn $100 per new customer, then you will need to bring in 20 customers per month.
If you earn $1000 per new customer, then you will need 3 new sales per month.
Then look at how your residual income will look after 2 years of doing this, assuming 20% stay active as customers. That is what you can expect on a monthly basis in both new sales and recurring ones.
If you look at the big picture in this way, you will know exactly what you need to do to get where you want to be.
Rebecca Ness is a work from home mom who is passionate about her kids, traveling the world, and painting.