how to start a small business from home
TRANSCRIPT
Agenda It starts with an idea Choose a Business Model Decide on a method of delivery Identify your target audience Choose a business medium Do you need a business plan? Launch
Business Facts According to Bloomberg, 8 out of 10
entrepreneurs fail within the first 18 months!
That’s 80% of businesses that start. Most of these businesses are startup companies.
You don’t have to be a startup A startup is a company that is seeking
solution to a problem where one doesn’t exist.
The first Airmobile company is an example of a startup.
Your business doesn’t have to be new.
Step 1 - It starts with an idea! It starts with an idea and a passion to
do.
Your idea doesn’t have to be new or extraordinary but it has to fulfill a need and make some business sense (It has to generate revenue)
Ask yourself the following questions. Why do you want to start a home
business? What products will you offer? Why will people want to buy your
product? Will your business help people? This is
the most important question to your success.
Step 2 – Choose your business model A business model is how a company or
business creates, delivers and captures value.
In other words a business model is how you add value, get your customers to pay for that value and how you make profit or earn income.
Types of Business Models Manufacturer Distributor Retailer Franchise
These are:the 4 main typesof business models
Manufacturer
A manufacturer business model involves manufacturing products and selling them to the public or a distributor.
As a manufacturer, you can sell your products directly to consumers or outsource the sales to other companies. These companies are called distributors.
Distributor
A distributor purchases products directly from the manufacturer and resells them to the public. Car dealerships are a good example of a distributor business model.
Franchise
A franchise can be a manufacturer, distributor or retailer depending on the franchise that you purchase.
Franchises require a buy-in fee to start up.
McDonalds is a good example of a franchise.
Freemium Business Model With this model, a company offers you
something for free like a free website and then hopes that you will purchase a premium website package after test-driving the free site.
The free site is usually lacking in scalability, SEO and the website designs are not great.
Network Marketing Also known as multi level marketing is a
business model where the company sells their products directly to consumers and encourages other consumers to sell them too.
Like franchises, network marketing requires a buy-in fee, usually between $100 to $200 dollars.
Step 3 - Decide on a method of delivery Your method of delivery is how you
deliver your product to your target audience.
We will group delivery methods to two main methods.
Online Storefront or Location
Online This method comes with the least
overhead, if any at all.
Online businesses continue to grow and many of them are small home businesses that need little or no capital to run.
Storefront or Location This comes with a lot of overhead.
The expense of maintaining a storefront can drain business revenue if the business lacks a competitive advantage.
Step 4 – Identify your Target Audience This step is the most crucial step for any business.
You have to know and define your target audience.
Consider these questions:
Who is my customer? Where does my customer hang out? How can I get in front of my customer? What is my customer looking for? How can I help my customer?
Step 5 - Choose a Business Medium There are four types of business
mediums in Canada. These mediums are sole proprietorship, partnerships, corporation and co-operatives.
The main reason why people register their business is to take advantage of applicable tax deductions.
Registering your Business For more information about the business
mediums in Canada, please visit this address on your browser.
www.techhelp.ca/register
Step 6 – Business Plan - Do you need a business plan? Yes you need a business plan but not
the traditional business plan that you are probably thinking of.
You don’t need thirty or fifty pages of content for your business plan.
Robert Kiyosaki, a business man and author created his cash flow board game on a one-page business plan. According to Robert, his business plan wasn’t even typed up.
Why you need a business plan To develop a game plan Staying on track Emotional balance Raising capital
Game Plan Your business needs a game plan. You
need to establish goals and ways to measure performance.
Staying on track Your business plan will keep you on
track by acting as a blueprint for your business.
Your business plan should contain structure and projections for your business.
Emotional Balance There will be many times that you will feel so
motivated that nothing can stop you.
There will also be times that you may become discouraged with fear and doubt.
At times like this, you can revisit your business plan to counterbalance your emotions.
Raising Capital You generally don’t need huge amounts
of capital to start up a small business from home but if you plan on raising capital for your home business, a business plan will increase your chances of success.
Understanding the Purpose of a Business The purpose of a business is to generate
revenue or income.
If your business has no way of generating income, then you don’t have a business.
Step 7 - Launch Once you have done your home work,
launch.
If you launch quickly, you will avoid procrastination.
Thank You Thank you for watching. For a more
detailed look on how to start up a small business from home, please visit the link bellow.
http://www.techhelp.ca/startup