If you have not yet read my previous post on the 7 mistakes most people make in a home based business, please do so. It will give you some insight into this series that I’m starting and I would love your feedback on your favorite book that has helped you with your mindset, marketing, etc.
So, they say that a smart person learns from their mistakes but a brilliant person learns from the mistakes of others. I hope that you’ll choose to be part of the second group of people because in this series of posts, I’m going to share with you the mistakes I’ve made in my journey to be a mompreneur.
And not choosing the right business model for my home based business, was one of the biggest mistakes that cost me financially and in lots of lost time.
I have begun to look at my journey as a mompreneur as it relates to dating. Looking back at my boyfriends of years past, I realize that it’s often you come to know by experience what you don’t want before you know what you do want. It was that way with my home based businesses as well.
Home Based Business Mistake #1: Not Choosing the Right Business Model
The first mistake that kills most home based business ventures is not choosing the right business model. I dove into this mistake several times! The problem is that if the business model doesn’t fit your ideal vision of what your home based business will give you and it doesn’t fit into your life the way you need it to, you will get burned out and frustrated, and you’ll have trouble making a success of it.
Four Common Home Based Business Models and their Pros and Cons:
1. Service Home Based Business: Bridal Consultant, Day Care, Hair Dresser, Tutor, Accountant, Personal Trainer,etc.
- Pros: It doesn’t require a ton of start-up expenses and you can turn what you know into dough. Ability to develop great relationships.
- Cons: You usually have to trade your time for money in a service type of home based business. You can usually only work with a certain number of people at a time: one-to-one, or one-to-few. You are often working around your client’s schedules.
2. Craft Home Based Business: Jewelry maker, Seamstress, Artist, Candle/Soap Maker, etc.
- Pros: Great for creative people who love working with their hands
- Cons: Challenging to be able to charge enough to make it worth your time unless you have a name developed for yourself. Often turns something you enjoy into something you dislike. Again, trading time for money. Often working isolated at home alone.
3. Direct Sales or Network Marketing Home Based Business: Arbonne, Mary Kay, USANA, Pampered Chef, Gold Canyon Candles, Send Out Cards, etc.
- Pros: Low start up cost, ability to create time and financial leverage, ability to create residual income, great for people who need training and support, ability to grow into entrepreneur. Builds great relationships, environment of personal development, easy to work one to many.
- Cons: Not all companies and teams will offer the support and training you need. Many think it’s a get rich quick plan and underestimate the work it requires. There are some significant differences between companies that are direct sales based and companies that are network marketing based, as far as the leverage you can create.
4. Internet Home Based Business: Online Retail Sales, Affiliate Marketing, Blogging, Information Marketing, Virtual Assistant, etc.
- Pros: Some internet home based business can create time and financial leverage. Easy to work one to many. Most will allow you to work from any location and at any time. Most have a low start-up cost if you already have a computer and internet connection.
- Cons: Often working alone, can be easy to waste time and get sidetracked because there are so many options available, technical challenges to overcome, many think it’s a get rich quick scenario and underestimate the amount of work involved. Again, there are some significant differences in the type of online business you can build.
How do you avoid the mistakes I made in choosing the right model for your home based business?
Think about the great qualities you have and the things you are great at. Here are a few things to get you started, but you’ll likely come up with your own list.
- What are your strengths?
- What do you enjoy?
- What comes easily to you?
- What home based business ideas have you had or dreamed about over the years?
When you narrow your list down to a few home based business options, put them to the test:
- Is it simple, does it work, and can you do it?
- Is there a market for what you are going to do? Who will you help?
- Are there other people who are successful in this type of home based business?
- Can you do it in a way that you stand out from the competition?
- Will it fit your personality?
- How will your business fit into your life? Kids? Schedule? Travel?
- What things could possibly get in the way of you doing your business?
- Does this type of home based business have the income potential you desire?
Think about the things you want in your home based business:
- Is this something you want to do for a long time?
- What is your vision for your business–how will it make an impact on the lives of others?
- Will it leave you feeling fulfilled and inspired?
I really encourage you to take a careful look at the business model you choose for your home based business before investing your time and money into it.
I have chosen to combine the network marketing and internet marketing options into one business and I’m really enjoying the benefits of both. If you have not started a home based business and you are looking to, I highly recommend you take a look at a network marketing business for starters. It offers you the ability to jump into a successful business model that will allow you to create a residual income through the sales of consumable products, and the time and financial leverage through building a team. And make sure you’re joining a solid company and a great team with a leader who you believe can help you be successful.
If you are ready to explore a home based business to see if it’s a fit for you, please send me an email. I look forward to getting to know you to see how I may help, either with a business fit, some clever marketing ideas, or a recommendation to one of the other fantastic home based business owners in my network.
If you’re already building a home based business and you have some mistakes or business models you would like to add to my list, please do so in the comments below. And please tweet and share this post on Facebook to help others discover the right home based business model for them!