A Work At Home Business Career – How Long Before You Make Money?
The first part of this article will touch on the how long you can expect to see any profits when you are starting your own home business as a work home career. It will give you some ideas on how long you will expect to wait.
With the exception of some not for profit organizations most people go into business in order to produce revenue (income) and profit. Unfortunately, when it comes to a home business many people forget this important point.
In a traditional business, whether a small high street shop, or a large franchise store like McDonald’s, business owners know to watch their numbers. A business must make a profit in order to survive and, if it doesn’t, adjustments must be made accordingly.
One of the reasons for the high failure rate in small businesses, home businesses, and MLM (network marketing), is because due to the low entry costs and requirements people often don’t treat them like, “real businesses.”
How To Make Money Online
Two things commonly happen:
1) Many people have the attitude that since they didn’t have to invest much to begin with they really don’t have to be too concerned about whether they make money or not, or how soon. Of course, that often ends up being a self-fulfilling prophecy.
It’s not just that way with a business, but with many things in life. If you come to own something that cost a great deal or required a lot of effort to acquire you tend to appreciate it more than something of lesser perceived value.
When you consider that network marketing has made some people just as much if not more money than many other traditional kinds of businesses, with incomes of as much as $1 million a month or more being achieved, treating a MLM as if it isn’t a serious or real business is a huge mistake!
2) Because the entry cost can be so low people overlook the cost of not making money, and also have a tendency not to pay attention to how much their other expenses associated with their business (such as trips, conventions, and/or buying extra products or services over and above what you really need) add up over time.
For example, let’s say that you spend $200 to sign up for a new business. Not a lot of money at all.
Weeks go by, and then months, maybe even years, and you still aren’t making any money. Perhaps you don’t think much of it because, you think to yourself, “I only spent $200 to get started in this business anyway.”
Best Small Business Start – Starting Your Own Business
But what are the true costs? What is the best small business start when you’re first starting your own business online? Let’s say that in addition to your startup cost you have also been spending $150 each and every month on buying your company’s products and services. (Perfectly ok if you enjoy and use all of the products you buy; not ok if you are buying more than you need simply to qualify for a certain level with your company!) And let’s also assume that you are spending $50 a month on meetings, conventions, or seminars (many people spend much more).
So, even though you really haven’t paid much attention because you only invested $200 to begin with, if your business hasn’t yet started making you money then you are really spending AND LOSING money in this hypothetical example. And, here again, in reality many people often end up spending much, much more.
Going back to the example at the beginning of this article about a traditional business, like a McDonald’s. Those kinds of businesses often have much higher costs associated with them, such as a store lease or mortgage, equipment leases, payroll, etc. It isn’t uncommon for a traditional business to have to operate for months or years before making a profit.
In contrast – though networking marketing is NOT designed necessarily to make you a very large amount of money overnight. You can however be able to generate an ever increasing residual income for yourself over time, and starting in relatively short order.
Creating A Business Plan
Everyone approaches a new home business differently. Some people prefer to roll their sleeves up and dig right in, expecting to start making money almost immediately. While others prefer to first spend time learning more about their new business, and/or obtaining any available training. So it’s acceptable, if you choose, to take a few weeks or even a month to “prepare” for your new business.
You should also be taking this time to create the basics of a business plan with achievable short term goals. However, especially if its your goal to start making money right away because you do not have a 9 to 5 job, its entirely realistic to start earning viable amounts of money within as little as 30 days.
Certainly within 90 days you will want to start seeing some kind of payoff in return for your efforts. And no more than 6 months should go by without positively starting to see income coming in. In fact, ideally, you should try whenever possible to not only earn enough money to cover your original startup costs, but you absolutely should be making a profit (in other words, extra money) within this time.
If after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously re-evaluate!
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1) Always remember to track ALL of your directly related business expenses, including how much you spend on leads, products and services, meetings, trips and conventions, training, etc. You must add these expenses to your original startup costs.
2) Subtract how much money you’ve earned from the number above (your total expenses) and this will tell you how much money you’ve made (profit), or how much money you’ve lost and/or are losing.
3) To repeat: If after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously re-evaluate!
Don’t continue down the same path if you are only spending more money than you are making, and not making any profit in return.
Remember, except for a not for profit endeavor, the purpose of being in business is to make money. And in order to make money you have to actually make more money than you spend.
How Long Will Your Home Biz Company Be Around?
This part of the article is describing what your expectations should be on how long you can make your home business a success. It will give you some ideas on how long you can expect your business to last depending on your drive and motivation.
Often someone will ask me if I’ve heard of a certain company, or if I know how long they’ve been around. But the most interesting question that I am sometimes asked is, “how long do you think they ‘will’ be around?”
That last one is not only an interesting question, but it’s one that really no one can possibly have an answer to.
Quite recently two of the World’s largest corporations, General Motors Corporation, and Ford Motor Company, had their credit ratings downgraded to junk bond status by the industry’s credit and investment rating services such as Standard & Poor’s and Fitch Ratings. And of course many people will remember Chrysler Corporation’s brush with near bankruptcy way back in the 1980s.
Certainly many corporate giants in numerous industries have faced tough times, including Kmart, Sears, and most of the major airlines.
Excel Communications became one of the most successful companies in the home business industry, and in American business history. Unfortunately they later ended up in bankruptcy due to corporate greed and mismanagement.
Despite examples like those above it is certainly not all doom and gloom. In fact, with the exception of Excel and some of the airlines, such as TWA, every one of the companies mentioned above is still in business.
How To Start In Online Business
I started with the examples above to illustrate that no company is immune from ups and downs, regardless of how large or how well established. But that certainly doesn’t mean that you can’t stack the odds in your favor when considering home business opportunities.
In fact, some of the criteria that you can use to make your evaluation are incredibly simple. But many people still choose to ignore good advice when it comes to making such decisions. (see the graphic below for the steps to follow).
However, not only can it be difficult to judge such things, but even those and many other factors aren’t as important as the test of time.
Simply choosing a company to join that has been around for a while (with “a while” being a minimum of 2 to 3 years and preferably 5 or more) will automatically stack the odds in your favor. This is opposed to people who choose to go with risky startups and pre-launches.
Most “new” businesses fail, and that’s a fact that is now so well documented that it might as well be cast in stone. And, again, we’re not just talking about the home business industry.
It’s a statistic that applies to businesses of almost every type. However, once a business is no longer, “new,” after it has proven that it can survive beyond those first critical months and years, its chances for continued success simply continue to increase over time.
There can be no assurance that even a company that has been around for a long time won’t experience bumps in the road, or even major problems. However history clearly shows that the longer the company has been in business, the longer they are likely to be able to continue to survive and be successful.
The Reality Of Online Business Success
Of course, there are some who enjoy the potential rewards, and substantially much higher risks, associated with new companies. However, in reality, most people who become involved with such companies only do so because they aren’t aware of the statistics regarding business success and failure.
Also many people become so wrapped up in the hype, emotion, and sometimes even greed (of promised skyrocketing profits due to being in on “the ground floor”). This is very often associated with new companies so they throw caution to the wind and jump in anyway.
You don’t have to become as knowledgeable as a business analyst to boost your chances of success tremendously simply by following the one simple rule of picking a company that has been around for a while.
Can you or anyone else guarantee that any particular company will be around 5, 10, or 20 years from now? Absolutely not… Can you stack the odds in your favor and make it much more likely that your company will still be around 5, 10, or 20 years from now simply by avoiding startups and new companies? Absolutely the answer is yes!
Ok getting near the end of my article and one more piece of information to impart. Now that you have a business up and running how are you going to achieve the longevity of those companies I’ve discussed previously? In other words…
How Do You Win At Home-Based Business?
Simple – Hit The Floor Running
Your bed’s warm and comfy and you no longer have a clock to punch or boss to answer to, so why not sleep just a few more minutes … but wait, you ARE the boss and have a business to run! If you don’t get out of bed and make things happen, who will? How would this behavior translate if you lived in the jungle? Read on and find out …
With no boss breathing down your neck or clock to punch, It can be so tempting to stay in bed one hour longer, to postpone picking up the phone and contacting that prospect, or to focus your time and energy on the easy and fun stuff and put the unpleasant stuff off until later.
One of the core competencies you need to succeed in a home-based business career is DISCIPLINE. You are now responsible for your success 24/7 and if you aren’t doing what is required to succeed, there won’t be someone to come along behind you and clean up your mess. You have to be consistent, you have to be committed, you must have 100% focus on achieving success. Lets face it – As in the offline corporate world. It’s do or die, eat or be eaten.
Home Business Plan
To truly succeed as a serious home-based business owner, you need to be strong-willed and self-disciplined. As I also mentioned previously, you also need a solid, thorough, written plan to keep you on track and in constant motion.
To ensure continuous momentum, you can plan your daily activities a month in advance, or even weekly. Some people prefer to dedicate each day of the week to a different task, for example:
Monday – marketing
Tuesday – business building
Wednesday – customer relations
… and so on.
Others prefer to perform a variety of tasks on any given day, for example:
Monday – marketing (morning), business building (afternoon)
Tuesday – customers relations (morning), industry research (afternoon)
The most important factor here though is to have a Plan and stick to it. See graphic below for some great tips.
No plan = no business and no business = no freedom.
So remember, hit the floor running each morning, keep ahead of those who are following behind and overtake those in front of you.
The choice is yours.
This has been rather a long read and if you have read down this far then I assume you really are interested in being your own boss and having your own home business. That’s great because now I am going to point you in the direction of an online program that will get you started. You can hit the ground running right away.
If you go to this site – www.Get-Started-With-Your-Own-Home-Business.com – there is all the information you need to get started.
I hope to see you on the inside and if you get in touch I will help you all I can.
Before you head over to that web page could you leave a comment below with your own thoughts on home business as a way to earn an income from the internet. I will reply as I always do simply because your opinion matters to me. I like to believe that I’m giving you the information you have been looking for.
To your success folks and best wishes.