Should You Lead With Your Home Based Business Opportunity Or Your Company Product?

With any home based business you have two options on how you can approach someone about your home based business opportunity. Some people like to approach with the business first and some people like to approach with their company’s product or service.
There is no right or wrong way to build your home based business. Both of these strategies have their pros and cons. I want to give you some thoughts on each strategy and give you an idea of which one you would like to use.

Leading With Your Home Based Business Opportunity.

With any home based business you want to always find a way to invite someone to take a look at your business. Which ever method you use you always want to invite someone and not just overwhelm with information if they didn’t ask to take a look.
Leading with your opportunity is a great way to get started making money right away with your business. This is a short term approach to getting you paid in your particular company. The great thing about this strategy is that you can use your product or service as a backup if someone does not want to join your home based business. Let’s say you approached someone about your opportunity and they weren’t interested. This is a great time to offer them to try your product or service. Tell them this is a chance for them to see how great the product or service is without making a commitment to joining your business. If it’s someone you know personally tell them that they would be doing you a great favor by trying it out and tell them why your started your home based business. People are more willing to do you a favor if it’s going to help you out in a big way. I have no problem asking someone to try out my service because I make it clear to them how much it would mean to me. Let’s say they try out your product or service and like it you can always approach them again about the business because they know the product or service does work. Even if they don’t join your business you now have a loyal customer who will tell others about the product or service and recommend it to someone they know!

Leading With Your Product Or Service.

Leading with your home based business product or service is another way to approach someone about your business. Tell someone you know about how great the product or service and how much of difference it has made in your life. People love testimonials and if the product or service has changed your life in some way tell them about it! Ask them a favor like I mentioned before and how much it would mean to you if they did so. Because down the road they may ask you for a favor. Leading with your product or service is a long term investment in your business so to speak. It takes longer because they are trying out the products or service and this takes time. The great thing about this approach is that if you have a superior product or service and they love it you can then tell them that they can make money just for referring others to use the product or service! They are a walking testimonial because they know it works, it’s worked for them and they will have no problem approaching others about how great it is! I’ve seen this approach work wonders and people who are passionate about a product or service will do wonders in your home based business.

You have to remember that your home based business is your business. Build your business however you want to! If you want people to try out your products first then go for it! This is why your started your home business in the first place was to be your own boss. Always remember that you always want to make it duplicateable for your team to use. Start having fun with your business and approach the business how you want to. I just wanted to give you a few ideas on how to approach someone about your home based business. Hope this answers your questions about using one of these strategies for your own particular company. Please keep yourself posted I have many great articles to come to help you with your home based business!

Home Based Business Opportunity Seekers – Does Your Business Meet These 7 Requirements?

What?

You mean my home based business has to meet seven requirements in order to be successful?

Sorry, but, YES.

Any home business that doesn’t meet the following seven requirements is much less likely to succeed. You’ll see why when you read them.

1. Your home based business must be profitable enough to pay you the “salary” you want, with enough left over to reinvest in the business. If you want to earn a good full-time income of say $50,000 per year or more, make sure your business is capable of providing that level of profit. If all you want is an extra $500 or $1,000 per month, that is fine too. But, you still must have some extra profits to reinvest so your business keeps going, and hopefully growing. If you don’t reinvest some of your profits in your business, it may just surprise you by drying up and blowing away. Pooof!

2. Your business must seem easier to you than most other ways of earning money. Though no business is really easy, your business should almost feel like it isn’t work. That only happens if you love what you do in your business. You love the topic your business focusses on. You love the products involved. You love the market you are providing products to. And, you love the people who are your prospects and customers. If you have a passion for your business and you love it, then your business, and all the so-called work involved, will seem easy to you. When it seems easy, you will almost certainly be more successful.

3. Your home business must provide real products or services that have real value to your prospects and customers. I’m sorry, but multi-level marketing schemes that focus more on the “opportunity” than on the products, don’t seem real to me. Neither do envelope stuffing schemes, get-rich-quick scams, and so on, and so on. Do make sure your products offer real value and help people solve their problems, meet a need, or satisfy a strong desire. Price your products fairly according to the value they provide. Be honest in all your dealings with your prospects, customers, and suppliers.

4. Your business has to enable you to, or at least allow you to, live the lifestyle you desire. If you are working 16 hours a day at your business every day without a break, if you can’t get away for a vacation without your business drying up, if you have no time for your spouse and kids, is that any way to live? No, decide up front what kind of lifestyle you want. Then, make sure your home business fits with that lifestyle. Otherwise, your business won’t be successful long-term.

5. Your home based business needs to make use of the internet as a marketing channel. Yes, you can succeed in some businesses without a strong online internet presence. And, you definitely should also consider some non-internet “offline” marketing methods. But, in today’s business and marketing world, if you aren’t using the internet to market your business and your product, you will be much less successful than you could be. If you haven’t already done so, make sure you select a good domain name, obtain web hosting, create your website or blog, and do a good job of search engine optimization for your site, so it will more likely be found by the search engines like Google and Bing.

6. Your business and your products or services must be better in some way than those of your competitors. In other words, your business must be competitive. Think of it this way…if your prospects can get everything you offer from ten or twenty other companies, why should they buy from you? Your home business and the products you provide must enable you to create offers that are better than your competitor’s offers. Maybe you offer a better value. Maybe your products provide more information or perform better. Maybe your guarantee is better. Maybe your product is provided in a better and different form. Whatever the difference is, you will be competitive if your offer is virtually irresistable. It should make the prospect feel like he would be foolish not to buy your product. A better product and an irresistible offer will result in long-term success for your business.

7. Your home business should be set up so you can test your products and your marketing methods at very little expense and very little risk. A traditional business on main street, or a new factory, can cost hundreds of thousands of dollars or much more. Many such businesses fail within 5 years. All that money and time and effort down the drain. Make sure your home business is the kind of business that allows you to test a new product or a new marketing method quickly and at low cost. Then, throw away or stop using the things that don’t work. Invest more and more in the products and marketing methods that succeed and return a real profit to you.

The Home Based Business that meets all seven of these requirements will be successful.

As a side comment, the only business I have personally found that meets all seven requirements is the business of selling information products (like books, ebooks, courses, audios, videos) using the internet and email for marketing.

How To Discover Your PERFECT Home Based Business – The 1st Of 7 Keys – A Profitable Business

This is the first in a series of seven articles that tell you how to sift through all the home business opportunities you hear about every day, and find the PERFECT home based business for you.

Are you ready to start making some real money in your own home business without working 60 hours per week? Are you ready to stop throwing your money down the “home business opportunity rat hole”?

Read on and I’ll show you how to test every home based business opportunity to make sure it fits the definition of The PERFECT Home Business, before you invest your time and money. Then, focus on the one that fits the best, and make it a success.

Each letter in the word “P.E.R.F.E.C.T.” stands for one of the 7 keys to finding the perfect home based business. Each key is something your home based business opportunity MUST have in order for you to enjoy the financial freedom and lifestyle you want.

What makes an opportunity P.E.R.F.E.C.T.? The “P” in PERFECT stands for “Profitable”. If your business isn’t profitable, why do it? If it isn’t highly profitable, you won’t be able to earn enough to make it worth your time, or you won’t be able to grow your business by reinvesting your profits back into the business.

“Profitable” means:

• High gross profit margin (preferably greater than 65%) and net profits of 20% of sales or better before taxes.

If you sell something for $1.00 and it costs you $.50, your gross profit margin is 50%. That’s about the profit margin most retail stores get. You need to do better than that to survive and thrive in your home business.

All of your other expenses such as advertising, overhead, and so on, have to come out of your gross profit before you have any “net profit”. If you sell something for $1.00 and the costs of your product, including all of your other expenses, add up to $.90, you only have ten cents per dollar in net profit (that’s a 10% net profit).

So, for example, if you want to earn $50,000 per year from home with a 10% net profit, you would have to sell $500,000 worth of your product. Wow, that’s a lot of product. Wouldn’t it be better to only have to sell $250,000 worth of product, or even less, to earn your $50,000 income goal?

That’s why you need a business with at least 20% net profit. And, if you really could sell $500,000 worth of products, wouldn’t it be better to have 20% net profit and earn $100,000 per year on that $500,000 in sales? The PERFECT home based business may even enable you to earn up to 40%-60% or more (sometimes more than 90%) in net profit. Yes, really.

At 90% net profit you would only have to sell $55,556 worth of product to earn your $50,000 income. That’s my kind of home business!

• “Profitable” also means a net profit (your “salary”) before taxes of at least $50,000 per year. And $100,000 or more per year would be more like it (unless your goal is to supplement your income to the tune of $500 to $1,000 per month. But, would you turn down $50,000 per year if you didn’t have to work any harder than you did to earn $10,000 per year?).

Your goals may be different than mine and you may be satisfied with lower profits. But, I believe you need to set your goals high, yet at a reasonable level. Then, even if you fall a little short, you will still be very successful.

• Low overhead (less than 5% of sales). Overhead is all the “fixed expenses” of running your business such as computers, printers, other equipment, furniture, office supplies, and office space rental costs.

A home based business is ideal for keeping overhead low, but you still have to be careful to minimize the space needed, the cost for utilities, and the equipment needed to run your business. Don’t go hog wild buying an expensive desk and file cabinets with your first profits. Instead, reinvest those profits in your business and keep your overhead low. You’ll be glad you did.

• Low labor content for manufacturing, assembly, or shipment of the product(s).

You don’t want to spend all of your time assembling and shipping something you sell. Most of your time should be spent on marketing and growing your sales and profits. The PERFECT home business enables you to sell products that involve little or no labor cost to make them or ship them.

• A high average order. Believe it or not, it takes as much effort to sell a $5.00 product as it does to sell a $50.00 product or a $500.00 product, maybe even more effort. So, the PERFECT home based business offers products with a high perceived value and a price well above $20.00. The exception is when you want to sell a low priced product, or even give something away, just to get customers added to your e-mail list so you can sell them other more expensive items later.

• Low initial investment required (less than $1,000 preferred). I don’t know about you, but business opportunities that require $5,000, or $25,000, or more to start scare me a little, unless the return is well worth the risk. There aren’t too many people that even have that kind of money to invest in a business. Why not find the PERFECT home based business that only requires $1,000 or less to get started, perhaps even a few hundred dollars?

• Small inventory with rapid turnover, or no inventory required. Imagine your garage or basement stacked from floor to ceiling with products waiting for someone to buy them. Yuk! Much better to fill each order as it is received without having any inventory in your home, or at least a very small inventory. The PERFECT home based business will allow you to do that.

• Repeat or backend sales potential. One of the highest marketing costs is the cost of getting a new customer. If that customer buys your product over and over from you (repeat sales of a consumable product or a monthly membership fee, for example), or if the new customer buys other products from you later (backend sales), you can dramatically increase your sales and profit. This is a very important ingredient in the recipe for a successful home based business.