Startup a Home Business
Posted by admin on November 4, 2009 - (0)
A glance at the definition of an entrepreneur reveals a person who ‘assumes the financial risk of the initiation, operation and management of a business’. So among the many aspects that go into entrepreneurship, a key aspect is taking risks. But then what is it that drives a person to take risks?
There are several factors which could be attributed to taking risks in entrepreneurship but the one which lies at their base is motivation. So, one could say that the motivation to ameliorate and succeed initiates a person to take risks.
Taking risks
Millionaires such as Henry Ford, Andrew Carnegie and Bill Gates began with small scale businesses and grew to billions. And one look at the traits of these individuals indicates that one thing is common to all of them. That is the underlying burning motivation to excel and achieve greater heights which drove them to take risks. Today in the United States alone there are some 16 million businesses of which nearly 12 million are operated as sole proprietorships which suggests the willingness in people to take risks.
Urge to excel
More often than not people who begin with small businesses become successful millionaires by taking small risks and graduate to bigger risks as time goes by. This is a gradual climb and one learns it as the business grows with an appetite to succeed and excel. In other words, greater the appetite to struggle and grow, greater would be your motivation and appetite to take bigger risks.
Reasons to grow
There are numerous reasons which could be attributed to a person taking up risks in entrepreneurship. It could range from a strong urge to create something ingenuous, doing something one believes in to earning money in a big way. All these factors could serve as motivation which eventually leads to a person taking risks in his business. For example, the greater is the urge in a person to become rich, greater would his efforts be concerted in that direction and in the process greater would be his chances to take risks. Apart from this the need could come from the urge to being a boss and handling different roles of a business ranging from financial, executive to PR and marketing
Realistic risks
Being motivated to take risks alone does not matter. In fact, at times it may prove to be fatal. What matters is taking calculated risks after evaluating the situation carefully. Experience, facts, shrewd planning and some amount of foresight of the outcome could be a few factors which should go into measuring the risk.
Thus, motivation to take risks matters to a great extent and as Napoleon Bonaparte said, “Victory belongs to the most persevering”. Thus you should be driven by the motivation to succeed which would eventually reflect in the risks you take to scale greater heights. The challenge is deciding which risk to take. If you’re working for a larger company, you’re liable to be their “shining star”, one of their few employees that could easily climb the corporate ladder. Some risks an entrepreneur might take are for example, hiring an employee whom you can only afford if sales increase as you plan.
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Be your own Boss
Posted by admin on November 4, 2009 - (0)
What makes home based small business a lucrative and interesting deal? Numerous factors and characteristics of the business prevail, primary among them being in charge of what’s happening around. This is one of the key aspects which an individual is bereft of in large corporations where he /she is just a mere link in the long chain of individuals.
So, did you ever feel the urge to go against the decision of your boss or differed from the thinking of your management or had your own opinion and ideas regarding things? If you felt the burning desire to put into practice your thoughts and ideas, then small business is the deal. There are numerous advantages such as you will come across such as:
1. Taking decisions
In a small home based business, the onus is completely on your decisions which in other words implies- ‘You are the boss around’. This privilege or luxury is something one is denied in the corporate world, where he / she is to abide by the decisions of his seniors and management. Decision making could pertain to different aspects ranging from financial, like arrangement of funds to executive spheres like hiring employees for the business.
2. Taking onus and responsibility
Ever decision you take would have a direct bearing on the health of your business. This is very different from how things work in large firms where there is a safety net to absorb the shocks and repercussions. So, being the boss means taking onus of what happens around.
3. Planning
Being the boss means leading from the front. This means playing a vital role in the management of the firm and taking stock of situation. This indirectly implies, a lot of mental effort to be put into the conduct and management of the business, varying from decisions on monetary aspects to marketing. You would need to think on different spheres and adjust to the dynamics of the situation.
It’s relatively easy when things are going your way but gets challenging when things get adverse. It is then, facing uphill targets and challenges that you would get to realize the ‘joy’ of entrepreneurship. And in fact, it is then that your thoughts and ideas will really make a difference.
Planning, an extension of your thoughts and ideas is crucial when you are the boss. Planning in a way means building on the ingenuous ideas and requires a great deal of careful ‘measured’ planning to make them succeed.
4. Master of your destiny
Finally, it’s going to bed with a feeling of satisfaction, after making a difference and impression. Most of all, it’s the contentment of having made your ideas work by taking a lead and being the boss of things around. That is something not everyone in this world gets! So, entrepreneurship makes you the boss of your business, things around you and eventually your destiny.
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Home based business fundamentals
Posted by admin on November 4, 2009 - (0)
The home based business provides cost effectiveness and the flexibility it endows on the individual to sort his schedules as per his / her domestic engagements.
Few of the fundamentals required in this regard are:
1. Evaluation of your home office model
But just as any important decision requires careful evaluation, so does setting up a business from home. It is important to take a fair measure of the resources available and required such as capital to set up the business. Also required is to find a strong reason to start the business which could range from financially becoming sound to appeasing creative needs. Another element prior to beginning a business pertains to availability of necessary skill set and understanding of the concerned markets and industry.
2. Analysis of the home business plan
Once a measure has been taken and a business is zeroed on, you need to evaluate this idea further. Who are the competitors and which is the segment that the business seeks to cater are a few questions that you need to ask as a part of the analysis of the idea. Care should be taken to ensure that it serves your other goals such as meeting domestic engagements, lifestyle etc.
3. Financial aspects
Depending on the financial resources at your disposal, you need to come up with a well thought business plan. If say for instance, you are financing the business by your funds, then the amount required to get started with, balance and juggling with the funds would be some aspects that would need to be worked under this.
4. Giving it a form
A business venture could be of many types, ranging from sole proprietorship, partnership to a corporation. All three types are viable depending on the availability of resources and funds. Although incorporation can be a tricky and challenging proposition, nevertheless it is indeed worth the money!
Another key aspect in setting up the small business is to get the proper small business licenses and permits. Depending upon the nature and size of the small business, you may have to deal with the concerned city, county, or state regulations. Legal aspects regarding the setting up of a home small business and insurance matters could be the other aspects that need to be addressed simultaneously to safeguard the small business against any risks.
5. Mobilizing funds
Most home-based small businesses begin with private financing from credit cards, personal loans, help from family, etc. To be in the safe side and also as a thumb rule, you should also have at least six months’ worth of your family’s budget in the bank, in addition to your start-up costs to safeguard your interests against the ups and down of the small business.
6. Arranging the infrastructure
Depending on the nature of your small business you may decide upon infrastructure required such as a premises for stock, computer / network facility and other such essentials which come in handy during the operation of the small business
7. A Large Heart
And last of all, a large heart to learn from the slips and errors which come by as the small business moves along, for that is the essence of entrepreneurship!
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