Homemade Business An Effective Substitute For Emergency Fund
- Emergency Income
Every financial expert suggests that you have six months to a year worth of income saved in case of an emergency. In these economic times that’s extremely difficult and unrealistic. Starting a small side business that simply services your personal community may be an effective way to build an emergency component into your financial health as well as providing long-term financial benefits. In essence, what you are doing is replacing emergency funds for an emergency source of income. It helps in two ways; over time you can develop more than a year’s worth of savings and if you ever lose your job you will still have work that produces income.
Begin with a plan, what are your skills and passions? Talk to your partner about create time for a side business and is he/she willing to help in the business? Be realistic about balancing family and work time. If you don’t have much time to devote to the business, focus on being more specialized, or product oriented and requiring people to place orders ahead of time. As you establish your emergency savings through your business, you can then switch to college savings, or retirement savings, or paying down your mortgage. The advantages and flexibility are great!
Remember – find out what your community needs, then start the business by finding clients first before any investment, your initial income is to be used as investment in your business. Once, you paid off your investment then that’s considered profit, keep careful accounting of your business, and continue to build relationships. The concept of homemade business is to develop friends into clients and clients into friends. Your focus is to provide the best unique personalize service at a great value in an atmosphere of friendship.
Review my 23-business ideas list (or come up with your own) and establishing a business plan posts. Contact me if you need help and Good luck.
When door closes another opens!
John
Photo by zoomar
Step By Step Networking Plan – Establishing Your 100 Supporters
100 Supporters
Lately, I’ve been helping several friends start their businesses. While writing up their business plans I developed a step by step networking plan to establish their first 100 supporters:
1. On average each person is connected to about 100 friends, family, and close acquaintances. You will need to reach out to these people, let them know about your business and ask them if they need your services, then ask if they know anyone that may need your services, and would they make introductions to their personal network for your business. Once you connect with everyone you know, stay in contact with them either through Facebook, other social networking sites, email, or good old fashion phone calls. If you think about it, if an average person is connected to 100 people and each of them are connected to another 100 people, that’s a really good pool of prospects to establish your business.
2. Next, reach out to your neighbors, walk around the neighborhood, pass out flyers about your business and send out postcard about your business like realtors. Place a vinyl business sign on your car, let people know about your business, and start getting to know your neighbors and develop friendships. Every time you connect with someone, keep in touch with them on social networking sites, and/or mommy groups and/or any other social event/groups.
3. Continue to reach out to your community by providing free workshops, volunteering and joining organizations like a church, temple, community center and professional association. Continue to befriend people and stay in touch with them.
4. Reach out to your neighborhood businesses, offer to help promote each others businesses, you can offer to place a free ad on your flyers, or wear their business T-shirt during community events, and in return you place a contest poster or win a free offer for your services/business (drawing contest box by the register). Remember to stay connected with new people, you want to continue to add to your list of contacts, prospects, and ever-growing base of friends who will refer your services.
5. Ask your personal network and clients for testimonials, written, and/or even better a video that you can share online and have spread virally to expand your network.
You want to quickly establish your first 100 supporters, these are people who will share, promote, be excited about you and your business. This special group of people will tell everyone, word of mouth, online, and continue to sing your praises to their personal network and many others. In essence they are your walking billboards! Your goals is to develop clients into friends and friends into clients.
If you would like me to share more ideas specific to your business needs please contact me or just ask in the comment section. How’s the plan working for you? Does the plan work for your business? Do you have any suggestions?
When one door closes another opens!
John
Photo by shioshvili
Your Brand Is Your HomeMade Business
Home made businesses are initially supported by friends, family and neighbors. So, your reputation is your business brand. Once you establish your brand, your brand works for you 24/7.
Do people remember your name, the name of your business and what it provides, do they have a positive and memorable image of you and your business?
The foundation of your business is providing personalize, customize, great value and friendship. Your impression should be professional, friendly, trustworthy, organize, hard-working, effective, efficient, and a good friend. Does your network speak highly of you, your business and would they go out of their way to recommend you to others?
To establish your business you will need the support of your personal network and to grow your business you will have to improve your brand and expand your network. Here are some tips to do just that:
- Business cards with your photo on it and all your social networking information so people can get to know you before contacting you.
- Develop an introduction that gives you an opportunity to share your business card.
- Home made businesses are a people building relationship business. So, always be positive and present yourself in a positive light in person and online.
- Establish a professional standard for yourself, have a portfolio/menu of your services/products, use social media/networking, video, accessible technology, always return calls and emails. Remember these people are your friends. Continue your professional and personal development.
- Be in the know in your community and support community efforts. Connect with everyone in your community through social media/networking and in person. If you want business from a broad base of people, avoid hot issues.
- Get involve in community service, volunteering and supporting your community. Each person you connect with on average are connected to 100 friends and family. Use social networking to magnify your efforts.
- Ask for testimonials and/or letters of recommendations, written, video, in blogs, and other web-based forums.
Once you have completed the list and build a memorable brand, your brand will work for you positively 24/7. In the beginning your personal brand will be the foundation of your business and as you establish your brand business will start coming to you. Focus on building a strong, positive brand and developing relationships and success will come.
What did you think of these tips? What else have you done to establish your brand? How well did the tips work? Any suggestions? Please share.
When one door closes another opens!
John
Ps don’t forget to sign up for my newsletter.
How to start a Children Birthday Party Business – Starter Guide
I am getting a lot of request for more specific instructions for my homemade business ideas. This post is a condensed starter guide for how to start your own birthday party business. Please sign up for the newsletters for more helpful general business information and/or new business ideas. Some thoughts as you start, ask for support from your personal community, but make sure you provide true personal, customize service with great value. Minimize expenses, don’t spend money you haven’t earned yet or don’t have, and make sure the work you are doing is generating income. Any disappointments or mistakes are signs that you’re moving forward and getting closer to success (keep a mistake journal and write down what you’ve learned and the solutions).
Starter Guide
Top 4 reasons why people will hire a children birthday party coordinator:
1. Have more time to enjoy the party!
2. Staying home keeps it budget friendly!
3. Assures the party’s success!
4. Busy schedule!
Skills required to succeeding in this business:
- Be organized
- Detail oriented
- Love being with kids
- Flexible and adaptable
- Creative
- Good communicator
- Motivated
- Socialiable
Checklist:
- Call your municipality and ask what license or permit you need to start your business – consult a business attorney
- Accounting/bookkeeping process – consult a business accountant
- Begin with sole proprietorship
- Start as a cash/check only business
- Price and service list
- Guarantee policy
- Add a business message to your phone/answer machine
- Start a Facebook Fan Page
- Join a community discussion group to share your business
- Modify the guide steps to personalize your business based on good business reasons
Specific Essentials:
1. Call your municipality for permit/license requirements (in the beginning look upon your micro business like baby sitting or dog walking)
2. Seek free consultations with a business attorney and accountant
3. Check out your local competition
4. This is a deposit-required business – at least 40% deposit is required to book an appointment.
5. Set up a separate free checking account for your business. In the beginning, keep your business account in your name, business checking generally requires a minimum balance or have more fees.
6. It is crucial you keep good records and have an accounting process in place to keep track of all your financial transactions. Use an old fashion ledger or a simple accounting software or spreadsheet. (Your accountant will love you and you’ll be glad when it’s tax season)
7. Keep your service to an hour and include overtime charges. Make sure you are making at least fifty to one hundred dollars an hour for the party (not including prep and post work time) depending on where you are located in the country, and what your competitor’s charge.
8. Here’s the party flow (this is a very basic flow, please personalize/customize it):
- Booking and payment process completed – 40% to 50% deposit, booking date, full payment 72 hours before party.
- Serve food after the festivities (not included)
- Arrival waiting activity (waiting for all the kids to arrive)
- Gathering process or activity (something simple to get everyone’s attention, like handing out stickers, signing a birthday cap, and gathering on a rug).
- Craft activity, do a quick demonstration, throw in some friendly rules and start!
- Next, games and group activity (freeze dance, stacking/balancing relay race, etc.)
- Next, Goody bag game and/or hand out bags with their names (game to win a goody bag, make sure everyone wins one).
- Use a digital camera and take pictures – email them to your clients for free, and ask to use them as testimonials.
- I would use a quick activity to help client transition into serving food.
- Do a quick clean up and pack away your supplies/materials.
- Leave a feedback/comment card with your client and a thank you note.
*Remember most of your clients in the beginning are your friends or relatives, socialize a little before leaving, and as you gain more clients, you want to turn your clients into friends. Offer true personalize and customize service for a great deal!
**However, do not over stay, because time is money. If you start scheduling more parties in a day you don’t want to create the expectation you will hang out at the party.
9. Follow up and feedback:
- Start the process while you are still at the party, watch your client’s body language and listen to her comments.
- Offer free emailed photos.
- Leave a pre-written thank you card and fun business/post cards in all the goody bags
- Engage other parents they might be your next clients – maybe offer a 10% discount with the business/post cards in the goody bags.
- Invite you clients and prospects to be your friends on Facebook
- Be a good listener when getting feedback
- Wait awhile and think about the feedback, assess and make adjust to improve your service. If you don’t listen and don’t continue to make improvements to your business it will not grow!
10. Homemade business Marketing:
- Explore, research and create a mini profile of your best competitor.
- Do what your competitor’s do and add your personalized, customized touch and great value (competitive prices).
Call everyone you know, go online, seek out old friends and ask them for people who may need your services. Ask them to please make introductions. Not everyone will help you right away, but don’t be disappointed, keep it friendly, and you never know when they will come through for you. Also team up with friend(s) or relatives that have businesses to promote each other’s business. Ask local businesses where families gather and ask if you could leave a promotional win a free Birthday Party for your kid drawing box. Consider a pizzeria, ice cream shop, sub place, local dollar store and they may even want to team up with you.
If you have any questions, or suggestions please share. So do you think this business is right for you? Was there information that would help your type of business?
My next newsletter includes a seven-day step by step quick start plan for how to start children birthday party business.
When one door closes another opens!
John
Photo by suzaned
Find Work Before You Even Start Your Business
So which business idea is right for you?
Are you a person who love kids or been to a lot of children parties?
Are you a pet lover and good with animals?
Do you tinker with computers and consider yourself a computer geek?
Are you handy and good at making things?
Do you love crafts and consider yourself creative?
Are you musical? (new idea – traveling musical exercise coach for kids or adults )
Do you sew well?
Consider yourself a great deal finder?
Check out my post with 23 more ideas for homemade businesses
Once you’ve decided on a suggested idea(s) or you own. Start emailing, go on Facebook, MySpace and call everyone you know. Ask for their support and poll which service would bring you the most business. Plan out how much materials and supplies would cost you and start making appointments.
Check out my post on business plans
In the early stages of your business ask for as much feedback as possible. You want to assess you service/product, adjust prices, adjust time, are you providing a better service/product than your competitor, and make sure you are making enough money. Evaluate and make adjustment to improve your service/product before fully launching your new business.
Read my other post and if haven’t sign up for my newsletter do it now! Please don’t hesitate to contact me if you need help. Good luck!
When one door closes another opens!
John
Photo by glurch2891
The Home Made “Relationship” Business
The concept of Home Made Business is that initially business comes from your friends, family and immediate community. Your business will focus on providing personalize, custom services for a great value and based on friendships. Many in your personal community will want to help you get started and will refer their network of people to you. You build your business on that foundation and nurture those relationships. In these difficult times, we are more compassionate and called to help one other.
Meanwhile, you are networking with new people in your community and forging new relationships.
Here’s a review on how a conversation flows when engaging someone new.
Look for and/or initiate opportunities for interaction by respectfully, slightly entering a person’s conversational space (that’s a space where acquaintances talk without having to raise their voices about 4- 5 feet away), then step out of that space to make sure they are comfortable with your engagement. Say hello, comment on or ask a question about something in the surrounding and wait for a response. Try again, comment on or ask another question about a positive current event. If a conversation begins to form, then introduce yourself.
Begin with easy places to start conversations and building relationships
Go to a networking event, everyone wants to talk to everyone.
Get involved in community and charitable events.
Go online.
Invite and go to family and friends get togethers.
Register for courses and/or workshops.
Stay updated with family, friends and new contacts. Go onto social networking sites, reach out to everyone you know, distant family, old friends, co-workers, past clients and new contacts.
Get use to making small talk with everyone you encounter.
Get use to asking people what they do with sincerity and interest.
Be a listener and let others lead the conversation.
Always have your business card with all your social media contact information on it and get use to giving it out.
Join every club, networking group in your field and other interest you may have.
Develop and nurture contacts.
Go out and talk to people, this is not a skill that you can develop on your own. Practice engaging others, in time it will become natural and comfortable. Be authentic! (In the beginning practice with close relatives and friends)
*If you are looking for work, visit small businesses in your field and offer to do consulting work for them. It’s a great way to network and pump up your resume – this can also be a home made business.
Your home made business will thrive if you begin to master these skills. You will have more business from family, friends, and more business from your community.
Good luck. When one door closes another opens!
John
PS - My next post will be a step by step how to start one of the ideas. If you want it to be a particular business idea please let me know. I’ll post the idea that’s requested most.
Photo by niallkennedy
Follow This Business Plan For Success
A business plan gives you a road map to your destination. It provides direction and focus to enable success.
Integrate one of the home made business suggestions or create your own.
Here’s a simplified business plan, modify it however you wish. But, make sure you have answers to all the questions.
What is the legal form of ownership? Start with a Sole Proprietorship.
Who’s your accountant? Consult a business accountant.
What are the required licenses/permits? Call the state and your local town.
What is your service or product? Pick one of the 23 ideas or create your own.
What need does your business fill for customers? Don’t re-invent the wheel. Find a necessary market. Focus on great value, personalize and customer service.
In the beginning your clients will be your family, friends and immediate community. Start networking (use technology) and through word of mouth.
How will you finance your business? Figure how much you need. Ask for deposits for businesses that require deposits.
Define you and your business:
Why are you starting this business? Is this something to generate income while you look for a job or is it for extra income. You are using a relationship based, better service/product, great value that is not offered in the market place.
What you do and how you do it? You provide great personalize service, great value and develop friendships.
How does your business make money? Write out your prices/fees and calculate how many clients you need to generate your desired income.
Why is your business important? It must provide a need and/or improvement in the market place.
What is your marketing plan? You using a relationship based plan to establish your business. Rely on friends, family, immediate community, and networking. Use technology and testimonials.
What is your accounting/bookkeeping plan? Use software or a simple spreadsheet and keep data well organized.
What do you bring that makes the business special and better? Your friendship, trustworthiness, personalize service, great value and creativity.
What is your mission statement? Write it out and make it your mantra.
For example, Googles mission statement is “Organize the world’s information and make it universally accessible and useful.”
What is your plan for customer service? Do whatever you can to make the client happy! Stay connected (use social media like Facebook to make the process easy) to encourage repeat business, testimonials and referrals.
Who’s your target customer? At first anyone in your immediate community that needs your service/product.
Develop a customer profile and build relationship with them.
Description of your services/products:
Define all your services/products – Write it out, make a brochure and menu.
Define and explain your pricing for services/products – Write it out, make a brochure and menu.
Define and explain how your services/products are competitive – focus on creativity, personal customer service, great value (competitive pricing) and developing a relationship with your clients.
Define the process of doing business – for example, taking orders, follow up, generate materials, and customer service. Write out every step in the process of doing business. Write out how you will address problems.
Marketing’s 4 P’s:
Pricing – be competitive, offer specials, and repeat discounts.
Promotion – offer contest, drawings, and sponsorships.
Products/services – What you can offer that your competitors can’t is personalize, creative, and great value every time.
Place – Depending on the business, you can offer your place, at their place, or find them a place.
Once you start generating income. Based on what you are making. Write out your goal for the next six months.
If you have any question please contact me. I look forward to your success stories!
When one door closes another opens!
John
Photo by enGraVe
Action Plan If You Lose Your Job
When I loss my job and business a year ago. The only thing running through my mind was all these scary questions. Here’s an action plan to answer some of those questions:
- Talk to your family and close friends that can help you stay positive and offer you help.
- File for unemployment.
- Look into social services for help with your family’s health insurance, food stamps and job training.
- Look at your fixed expenses, cut corners, cut out extra expenses and lower your standard of living.
- Go on line and look at reputable job sites. Don’t look for easy money – there aren’t any!
- Talk to people, credit card companies, finances companies you owe money to and make arrangement to reduce you payments.
- Make sure you retain your insurance. Especially now when you and your family are vulnerable.
- Use technology and your network of family and friends to help you in your job search.
- Polish your resume, take on side jobs to keep your job skills current, volunteer, and in these difficult times many charities are looking for people to help. Helping others is great for your resume!
- The side jobs and/or starting an at home business can provide income, but also show your future employer that you have a keep going, and positive work attitude. These efforts will keep you skills strong and add new skills to your resume.
- Contact small businesses that work in your industry and offer your services as an consultant to their clients. Of course the small businesses will get a cut of your fee. The idea is to keep working and stay current.
- Stay positive, make a work search schedule and keep working. Remember when one door closes another opens!
Good luck! What did you think of the action plan? Did I leave anything out you thought I should have included? Have you try some of these suggestions? Do you have any suggestions that can help others?
When one door closes another opens!
John
Photo by David M*
Quick Steps To Setting Up Your Business
Here’s your quick steps:
Think about these two questions as you start your business-
Legal Liability – How do I protect myself from any failure or fault caused by my business resulting in damages? As your business grows this is something you should consult an attorney about.
Tax consideration – How do I structure my business so I can take full advantage of the tax laws? Consult your accountant.
- Establish your goals for the first thirty days. For example: How much money you need to generate?
- Check if there is licensing or codes that may apply to your business.
- Consult a good business accountant. How do you pay taxes?
- You may want to start your business as a Sole Proprietorship. If you have the funds to establish the business structure you want go ahead.
- Know your competition.
- Create a simple business plan for the next 6 months. Set a few goals at a time, decide how to market yourself, plan customer service, and measure your return on investment.
- Open a business checking account. Keep your personal and business funds separate.
- Review your business plan, watch and learn from your competition, and revise your plan as necessary.
For most of you, you will be starting with a sole proprietorship business structure - it is the easiest, cheapest and fastest way to start a business. However, you must check to see if there are any legal formalities that may apply. With a sole proprietorship you alone make all the decisions and are responsible for everything.
When one door closes another opens!
John
Photo credit anadelmann
23 MORE Ideas For Home Made Businesses
- Home birthday party coordinator – come up with a menu of themes, crafts, games, activities and goody bags.
- Birthday party face painter/activity provider – come up with a menu of services as a party entertainer.
- Home chef – come up with dishes for busy families, people with special diets, people who need catering for special occasions, creative food themes, and consider providing clean up.
- Custom Dessert caterer – come up with a menu of specialize deserts for all types of special occasion and have strategies in place to generate repeat business.
- Home stager/organizer – help realtor(s) stage client houses for sale, provide storage facilities, provide simple handy work, and provide organizing services.
- Baby/Child room artist – come up with a menu of simple, but unique mural/design ideas for rooms and consider custom decorated children furniture/products.
- Home Maintenance/window cleaning/snow/leaf removal services – come up with small around the house services that help busy families, schedule repeat services and /or seasonal services.
- Easy & Simple pet grooming business – come up with a menu of pet services, like washing, nail clipping, simple cuts, basic animal training and offer schedule repeat service.
- Simple sewing and mending services – come up with a menu of sewing and mending services for clothing, curtains, sheets, covering, and specialty custom products.
- Family Album creator/designer services – come up with a menu of personalize, custom family albums, help families organize their pictures, help families create a story book and use technology to make it look professional.
- Healthy lifestyle and diet motivator – look up some basic healthy diets and exercise programs where you help others reach a healthy lifestyle, provide daily personalized coaching, and provide positive feedback.
- Personalize Jewelry designer – come up with unique and trendy custom jewelry for special occasions, for special moments, adult and kid jewelry making workshops.
- House photo/video-grapher – create a portfolio and provide a menu of packages for realtors and/or home sellers, and provide a way for people to view these images online.
- Your town computer geek – provide a menu of budget friendly services, join affiliate programs, provide ask the geek site and offer small business technology help.
- Educational activities tutor – provide a menu of educational and fun activities for children and their families. Help them get over math phobia and improve in other subjects.
- Family/small business virtual assistant – provide a menu of services like keeping dates, making simple phone calls, even some shopping services, and other personalize services.
- Online editor – provide a menu of editing services, for students, small businesses and have strategies in place to generate repeat business.
- Product shopper and finder – do you know anyone who is looking for the best value for a specific item, and is too busy?
- Hand calligraphy and other language calligraphy services – do you have great penmanship?
- Daily Facials – everyone need skin maintenance and pampering.
- Online tutor – were you a teacher, bookkeeper, or engineer who’s a stay home parent or unemployed? Kids need homework help. You can provide tutoring online to multiple students at the same time.
- Door to door sales specialist – sale cars, vacuums, any product that provides large commissions.
- General contracting and service referer – do people need to find a dentist, plumber, auto mechanic or good handyman? You can earn a fee from professionals who need business and help people find good help.
When one door closes another opens!
John
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