How To
Create A Successful Small Town Home Based Business
By Tom Egelhoff
 One of the best differences
between large cities and small towns is the feeling you get while
driving around a small town. Tree lined streets, laughing children
in the yards and white picket fences.
As I make those drives I often look at the homes and wonder
what's happening behind those cottage doors.
Perhaps it's someone sewing a one of a kind design, maybe
it's a beautiful doll created in regal finery, or raw wood taking
shape as fine furniture or a sculpture at the artists hand.
It's the home based business. The human spirit expressing
itself. Not that large cities don't have home based businesses
too but they just seem to fit more comfortably in a serene small
town setting.
Perhaps millions of small home based businesses are started
each year. Most will fail or at best meet the Internal Revenue
Services definition of a hobby not a business.
So what makes one business successful while others fail? That's
the focus of this weeks article. Here are the tactics I believe
a small business must embrace to be successful.
Are you
serious?
You may have already heard this from some of your so-called
friends. "You?...In your own business?" "ARE YOU
SERIOUS?" For ways to combat this attitude see: Small
Business Failure:(Three Reasons Why Your Business Will Fail And
How To Avoid Them)
In order to be successful in any business that's the question
you must ask yourself. If you aren't serious and ready to make
the commitment you have a hobby. It really doesn't matter if
you do it or not.
People who are serious about their business dream are passionate
about it. They simply will not be denied. They will get up over
and over and over again after being knocked down.
Don't pick
just anything
I used to subscribe to a magazine called "New Opportunities".
It was a few articles and many pages of advertising about various
business start-ups. I'm sure you've seen these types of ads.
"Earn Big Money In Upholstery", or "Start Your
Own Vending Machine Business".
I'm sure most of these are perfectly legitimate business opportunities
but where is the passion from above. If you "buy into"
their business methods without a wholehearted desire for success;
convinced that this is the ideal business for you then I can
confidently predict failure.
The secret of real business success is being passionate about
your business idea. Find something you enjoy doing and find a
way to make money doing it. I have a passion for marketing and
found a way to bring that passion to life. I started a marketing
company that deals with small businesses in small towns.
Here are some ways to find your ideal business.
- If you have a favorite hobby or pastime can you make it pay?
In Montana, where I live, many hunters have become "outfitters."
These are people who guide others on hunting or fishing trips.
Doing what they love but also being paid to do it as a business.
- Have you learned or developed a skill from your day job that
you could translate into a home based business. Many automobile
mechanics start this way. They go through the apprenticeship
at the expense of the car dealer and then open their own shop.
- For years Joe Carbo sold a book called, "The Lazy Man's
Way To Riches." It was nothing more than a simple philosophy...Find
a need and fill it. Find a problem that people don't want to
deal with and do it for them. Don't want to cook tonight? There's
a restaurant on every corner who will be glad to do it for you.
Planing your wedding getting out of hand? A wedding planner will
be happy to help you out.
- If you already have a computer or some other type of equipment
or technology can you develop a business from that?
Remember, most people can't do what you can do.
Define who you are and what you do
When I decided to write my first book it was a very intimidating
experience. I would look at my bookcases filled with over a hundred
books on marketing and advertising by some of the most respected
names in the profession. How could I ever hope to compete with
such immortals of the marketing world? Who was I?...a nobody.
What finally convinced me to under take the project was that
the information was more valuable than the messenger. There were
not, and to my knowledge still aren't, any books that directly
address the advertising and marketing challenges of the small
town business owner. Once I realized this my passion was ignited
and nothing could stop me from writing the book.
So a nice commercial but what does it mean to you? If you
are a landscaper, what sets you apart from other landscapers?
Do you specialize in large properties? Small properties? Special
flowers, grasses or shrubs? Who would you rather have work on
your automobile breaks. A guy making $6.00/hr or a guy making
$25/hr? We all like expertise. If we like it well enough and
can afford it we buy it. What sets you apart?
Charge what you are worth
One of the biggest mistakes home based business owners make
is not placing real value on their talents and/or products. When
I started doing computer design work back in the mid 1980's hardly
anyone was doing it.
With the computer and clip art doing most of the work I felt
guilty charging for it at all. It was so easy I thought that
anyone could do it. Of course I came to my senses and found that
they couldn't. It was easy for me because I had spent many hours
in front of a computer screen learning the programs and composition.
Here's an easy formula to help you determine your selling
price for your goods and services.
Direct Costs+Overhead+Profit=Your
Selling Price
Direct costs are items like materials you may need
to do your job. If you are a carpenter it might be tools, wood,
etc.
Overhead is are normally expenses not directly related
to the production of the product. Insurance, rent, electric and
so on.
Profit is a realistic amount that you would like to
have after all other expenses have been met.
In addition to the above formula you will also need to know
how to do a break-even analysis. This will show you the amount
of product you must sell before your home-based business will
begin to pay for itself.
For a formula on how to do a break-even analysis. See: How To Do A Break-Even Analysis
For more on how to grow your business to the break even level:
See: How To Grow Your Small
Or
Home-Based Business To The Break-Even Level
Make your business legal and professional
If you think you can save some money by putting off certain
startup costs...thinks again. If you are going to have a business
then have one. Here is a short list of some of the things a legitimate
business has.
- A business license - why wait until the city finds out about
you (and they will in a small town) and threatens to shut you
down. Also before getting your license make sure your home is
zoned for the type of business you want to do.
- Open a separate bank account - the IRS will be very reluctant
to recognize you as a business without one. Also it's much easier
to figure your deductions.
- Get a separate phone line. If you are away from home making
business calls then consider a cell phone. You can use voice
mail after hours. Again the IRS will not let you deduct phone
charges without a separate business line.
- Get as good a quality business card as you can afford. And
Use Them. Everyone you meet should have your business card. A
business card goes in every local bill you pay every time you
pay it. Everyone within walking distance of your home should
have your business card. Politicians go door to door to sell
themselves why can't you?
If you skimp on these things customers will wonder if you
also skimp on your service and dependability. Do you?
The Last
Word on Successful Small Town Home-Based Businesses
Business success is based on the trust and confidence that
customers place in you. That trust and confidence is generated
by your passion for your business and your professionalism.
How you feel about your business says a lot about who you
are. So does your professionalism. If you are a true professional...act
like it. And the business will come your way.
(Return
To Small Town Marketing.Com Main Menu)
Listen
to a radio interview with Tom and Entrepreneur Magazine - Click
Here!
This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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