When you make the choice to start a home business, you will need to try to figure out which type of business is right for you. The best way to do that is to be very honest about your resources, temperament and abilities. It can be a difficult choice because so much is at stake, but it’s good to give it some thought and consideration before investing a lot of time and money into a business idea that is wrong for you.
Create a Dream Board
What type of life do you want to live? Get some old magazines, or get out the crayons and pencils and draw what you see your future as. If you prefer technology, use PowerPoint to create a dream slide show instead of a dream board. The point is to get down on paper how you want your life to be when your business is successful.
Determine How Much Money That Life Takes
How much do you have to make a year to enjoy the lifestyle from your dream board? What type of income will this require? Is it realistic, possible? If it’s realistic, set a deadline for yourself on how long you’ll take to get to that goal. Use that number to help you determine what type of business you will need to start.
Make a List of the Type of People You Want to Work With
Who do you want to surround yourself with all day long? Who do you want to work with? Who do you want to work for? If you can narrow down the audience that you can create products for, or services for, then you are on the right path. Are there enough of these people to create a profit? If there are only a couple hundred, how many of them can you attract? Be realistic and understand that you need a large under-served audience for whom to create.
Make a List of the Products or Services the Audience Needs
Now that you know who you want to work with and be around, make a list of the type of services or products that this audience might need. Can any of these be the start of your dream board life? If you have a smaller audience, you need to create a higher priced item. For example, if you want to earn $100K a year, how many products do you have to sell to create that income? Mark everything up by 100 percent to take into account the cost of marketing and doing business.
Write Down Your Resources
Resources include people you have access to, connections you’ve made in the past, family, friends, your skillset, their skillset, the money in your bank account, and the equipment you already have or that you can get access too. Do you have enough and can you get enough to do what you have determined is right?
Write a Business Plan
Finally, take the time to create a business plan. This will give you time to sit with the business idea, in your mind and heart, to ensure it matches your values and ideas. It’s not a waste of time to create a business plan even if you don’t ultimately start that business.
Remember to be honest with what you’re capable of doing. If you don’t like making cold calls, don’t pick a business that requires it. If you hate to speak in public, don’t pick public speaking as your business idea. The closer you can match the business idea with what you love to do, the more likely you are to be successful.