The 7 Wonders of Home-based Entrepreneurship

Well, a more appropriate title would be "The 7 Things Home-based Entrepreneurs Should Worry About".

When a person takes the entrepreneurial plunge by starting a home-based business, be it MLM, direct selling, reslling, or something similar, there are some things that you should consider so you can see the light at the end of the tunnel - and it won't be an oncoming train like the one pictured above!

Let's get right to it...

1. Company is owned and/or managed by those who have done it successfully, or are doing it successfully in the present
   
   This is very important. For the life of me, why would people follow someone that talks theory and not proven fact. When you select a company to invest your time, energy, and money in, make sure that the leadership understand your pain - they have walked the road that you now want to travel. If they didn't, how can they empathize with and advise you? For instance, I could never teach a woman how to deal with menstrual cramps or childbirth because I never experienced either one. Make sure that you pick an income opportunity where the company's owners and/or management has been successful in doing what you're endeavoring to do for profit.



2. Company's "old", and market is "young"
   
   Newer companies tend to go through growing pains, and a lot of other changes as they find their way. According to Scott Shane's book, Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By, literally half of start-up small businesses fail within the first 5 years. While fortune favors the bold, it would be best to invest your time, energy, and money in a business that is "old" -- been around for more than 5 years.
   
   The market should be "young", though. I don't mean young in age, but young in the sense of having a growing, expanding market. You want to be positioned in an industry that has a lot of growth potential. For instance, selling 8-track tapes is NOT an expanding market.



3. Must have a good, competetively-priced product that is consumable or subscription based
   
   I remember looking at a film called The Pirates of Silicon Valley that was a historical dramatization of the rise of Apple and Microsoft. It is a little-known fact that Bill Gates used to work for the owner of Apple, Steve Jobs. When Steve Jobs found out that Bill Gates was using some of his technology to market Microsoft's Windows that was what Steve Jobs considered to be a "watered-down" version of the Apple operating system, he laughed and mocked Bill Gates. Bill Gates said, "You just don't get it. It is NOT about what is better, but which product can best capture market share".
   
   Let that sink in.
   
   Most people I know can make a better burger than McDonald's. Quick question though. Can you sell more burgers than McDonald's?
   
   Okay, back to the point. The product or service that you decide to market doesn't necessarily have to be great, but it has to be good at a competetive price. If it is great, but over-priced, it will collect dust on your shelves.
   
   Also, the product should be consumable or subscription based. That is to say that when people get to the bottom of a box, bag, or bottle they must reorder from you. If it is a subscription-based service like cable television, insurance, a discount medical plan, or a legal expense plan, the consumer must reoder to keep enjoying the benefits of the service. Ideally, the product is on auto-ship or the service is on automatic debit (to the customer's bank account or credit card).



4. How much, how often, and how many ways will you be paid?
   
   It is paramount that you know this. For instance, if you're a network marketer or an affiliate marketer, how many ways can you generate revenue? Can you retail? Can you get override commissions from your sales team? Can you generate performance bonuses? How often are you paid? Daily? Weekly? Monthly? Also, how much volume has to be moved (i.e. how much must you sell) to achieve your income goals? This can best help you determine the return on investment of your time and energy.



5. Training and support are provided
   
   Folks, you cannot buy a business in a box. Most of us don't know a thing about running a business, so we need mentoring and coaching. If there is little to no training and support, the likelihood of you succeeding are next to none. Enough said on training and support.



6. Are you passionate about the company's mission?
   
   Your love of the game will help you through the trials and tribulations that you WILL face as an entrepreneur. If you are not in sync with the company's mission, you will not have the mental toughness and endurance to succeed in your chosen endeavor.



7. What is the company's culture?
   
   Is the company that you're working with demand that you are Internet-savvy? Do you have to do door-to-door sales? Must you advertise? Do you have to cold call? Are you encouraged to attend conference meetings? Are you encouraged to do home parties? How about trade shows? Also, what restrictions are placed on you marketing your business?These are things to consider about the culture of your chosen business.

Did this blog post help you at all? Please let me know as I am aiming to help. Thanks.

To your success,