Posts Tagged ‘Home’

Home Business Success: You Have to Play Big to Win Big !

If you had the opportunity to start a home based business for less than $100, and after 2 years your checks would start to approach $2k a month after you’d brought around 2,000 people into your organization; or you could start a business with something just over $1,000 in startup costs, but within a few months of starting you would start receiving checks in the area of $100k with just over 20 people on your team, which home based business would you choose to get started in…?

This was the scenario I found myself looking at during a recent phone call I had with a prospect. At one point in the conversation, this person began telling me with a certain sense of pride how they had been with their company for a couple of years and were now beginning to see their monthly checks reaching the $2,000 level each month. Happy for them, I asked how many people they had in their organization. I was surprised when they told me they had just over 2,000 people in their group. I knew from what they told me that they were action oriented, persistent, and committed, all desirable qualities and traits that I look for in people who work with me.

As our discussion continued, they expressed how they were happy with their business and proud of how they had persevered and grown their organization so large. Soon after this they explained that they had only called out of curiosity to “see what else was out there”. However, they simply continued telling me how happy they were where they were at, and with the income they were making, and that they really didn’t have a desire to do anything else.

It was easy to see that they were actually hoping to impress me with their “success” and were hoping to recruit me into their organization using what is called the “reverse marketing” technique. Instead, I simply wished them continued success and suggested that they keep my information handy and to go ahead and call me in the future if they ever found themselves in a situation where they wanted to do something that might be more rewarding, both in terms of products and in the amount of income they could receive from their efforts.

After we hung up, I found myself wondering how they would have felt had they had found out that in a different business they would have made over $100k in a month with just over 20 people in their organization for the same effort they were already putting out, or that an income of $175k a month was possible with less than 30 people in their organization.

For individuals like this, the slightly higher startup costs involved would stop them from even getting started, but it would also keep them from receiving the much more substantial rewards as well. The common thinking that somehow a lot of people all playing small will some how produce a big win simply doesn’t work. In the home based business arena, as in any area of life, you have to play big if you want to win big and enjoy success on a level that others only dream about.

How To Calculate Home Based Biz ROI (Return on Investment)

ROI (Return on Investment) is probably the most important calculation one needs to make to ensure the long-term viability of their business. It is not enough to build in a profit margin on the product or service being offered. One must track with proficiency the amount of dollars being invested into attracting sales and how much ROI those dollars put back into the business. If the investment meets too little return, a product line is doomed to fail in the long-term.

THE BASIC ROI PERCENTAGE CALCULATION

Many experts seem to agree, that calculating an accurate return on investment (ROI) is not an easy thing to do.

I do not intend to give you a thorough analysis of the ROI calculation process. Calculating an accurate ROI is hard to do, but explaining the full scope of ROI calculations in less than 1000 words is far more difficult.

As such, this article is only intended to introduce you to the basic concepts behind ROI calculations. Here is a very basic equation for calculating the ROI:

ROI = [(Payback - Investment)/Investment)]*100

Your payback is actually the total amount of money earned from your investment in your company. Investment relates to the amount of resources put into generating the given payback.

You should run ROI calculations on both monthly and yearly timelines.

IMPROPER CALCULATIONS BY MANY SMALL BUSINESS OWNERS

The actual amount of investment into a business is often misunderstood by the business owner. As a result, true ROI calculations for most small businesses are skewed.

Most small business owners make their mistake in this most necessary calculation, because they do not properly value their own time. Please note that when I previously defined investment, I stated that it relates to the amount of resources put into generating the payback.

Indeed, resources includes cash money. But, it also includes human resources or time.

If most small business owners would value their hours at the minimum wage, and calculate their time into the investment equation, they would soon realize that their small business is running in the red!

Some small business owners will finally run ROI calculations including the human resources, and suddenly realize that they could make more money working a job. If the small business owner has been running their business for a really long time, struggling to make ends meet, they might see this calculation and close their doors once and for all.

PLEASE DO NOT LET ME DISCOURAGE YOU

I do not share this revelation with you so that you will close your business down. Quite to the contrary. I share this with you so that you can see the big picture and start running your business in a way that will actually generate a real profit for you and your business.

If you are within the first two years or five years of the start of your business, then running in the red should not be thought of as a bad thing. However, if you are ten years into your business and earning less than minimum wage from your business, there is a serious problem afoot that needs to be addressed

immediately.

STARTING OUT

When you are just beginning your own business, you have plenty of time on your hands. This is the reason why most small business owners do not properly count their time in the ROI equation. They just look at cash expenditures and incoming monies, and they are satisfied with that calculation.

It is often said that people generate the kind of results that they believe they can achieve or the kind that they want to achieve. Seeing the goal is the first step to achieving the goal. Expectations will always bring results equal to the expectation.

Having been down the business startup path before myself, I too understand the desire to calculate ROI without consideration to the time invested in the enterprise.

However, I also understand the importance of placing a value on my time and working that into my final numbers.

In the beginning, I ran two types of ROI calculations: all resources exempting my time, AND all resources including my time.

Of course, I actually set a higher expectation for my own income level. First, I had decided on ten dollars an hour for my time. Later, I adjusted that amount upward.

Starting out, even though I ran two versions of my ROI

calculations, I relied first on my resource excluding my own time. Once I had achieved this goal, then I refocused my attention to reaching the ROI which took into account my own time.

Now, that time has passed, I can go back and look at my yearly ROI and see that I have earned enough cash to pay for those early days of famine.

THE SECRET OF TURNING ROI CALCULATIONS INTO SUCCESS

Every step in your business startup is a calculated guess as to what you believe you can achieve.

Measuring your results is essential to making your business profitable. ROI measurements are imperative to measuring and understanding the results you are achieving with your new or existing business.

Take into account all factors relating to the profitability of your business and do not smudge on the facts to make it seem more profitable than it really is. It is important to approach your business and your business results with absolute honesty. Be honest with yourself and face the facts of your task.

An honest examination of your business at regular intervals will help you get on and stay on track to keep the doors of your business open. You will thank yourself later.

New Approach for Rating Home Biz Opportunities.

Type “home biz opportunity” into Google’s search engine and you will get about 10 Million entries. Also, there were 409,212 searches using the search term “home-based business.” This new approach to rating “home biz opportunities” is based on 11 objective major criteria and 7 minor criteria. There are no web sites that only rate home biz opps, only those that review some opps only to point you to their specific opportunity.

Each major attribute can earn 7 points, and each of the 7 minor attributes can earn 3 points each. Ratings will be: Excellent, Good, Average, Poor, and Scam. Excellent requires a score of 90 or above, Good requires a score of 70 or above, Average requires a score of 50 or above, Poor requires a score of 30 or above, and Scams get no score at all. The score totals mentioned above are for all 11 major attributes and the 7 minor attributes. The perfect home business opportunity would score a 98 using these criteria. However, there are no perfect home business opportunities, no matter what the promotion brochures say for a specific opportunity.

Some of the many questions or considerations involved in rating a home business are-

How big is this market?
What is the industry trend?
Is the industry expanding?
What is the nature of the product or service?
Is the product consumable?
How is the product delivered to the customer?
Is there a proven business system?
Is there a good support system?
Is the company well respected?
Will you be ahead of or behind the trends?
Are you early or late in the product and industry cycle?
Do the products provide value for the cost to the end user?
Does the company have any exclusivity or patents?
Regarding the competition, who are you marketing against?
Are there good profit margins?
What is the payment or commission scheme?
What are the sales methods involved?
Is the company “On the Net” and are they E-Commerce enabled?
What level of administration is required?
Is training available from your up line?
How great is the potential to make money in this business?
Do you know someone with experience in this business?
Do you have to do all the work or can you earn overrides?
What is your gut feeling?
Will the company train you?
How soon will my investment come back to me as profit?
Can I work this business at my own pace?
How long has the company been in business?

As you can see from just the limited set of questions above, there are a lot of things to consider before you decide to invest your time and/or money in any home business opportunity.

THE NEW OBJECTIVE APPROACH

This system used to rate home biz opps is based on 11 primary considerations and 7 minor considerations. They are-

Primary
1. Product or service
2. Product price and market competition
3. Company
4. Proven business system
5. Available support system
6. Available training and resources
7. Compensation system
8. Profitability
9. Costs involved – both startup and recurring costs
10.Will I have full control over my business
11.Can I work this business at my own pace

Minor
1. How is the product delivered to the customer
2. Does the product/service have an automated delivery capability
3. Is the company “On the Net” and E-Commerce enabled
4. Are you supplied with business tools to make your live easier
5. What level of administration is required
6. Consider whether you will be ahead of or behind the trends
7. How great is the potential to make money in this business

Using these objective factors will save those looking for home biz opps a lot of time and many dollars that would otherwise be wasted.

New Approach for Rating Home Biz Opportunities..;-)

Type “home biz opportunity” into Google’s search engine and you will get about 10 Million entries. Also, there were 409,212 searches using the search term “home-based business.” This new approach to rating “home biz opportunities” is based on 11 objective major criteria and 7 minor criteria. There are no web sites that only rate home biz opps, only those that review some opps only to point you to their specific opportunity.

Each major attribute can earn 7 points, and each of the 7 minor attributes can earn 3 points each. Ratings will be: Excellent, Good, Average, Poor, and Scam. Excellent requires a score of 90 or above, Good requires a score of 70 or above, Average requires a score of 50 or above, Poor requires a score of 30 or above, and Scams get no score at all. The score totals mentioned above are for all 11 major attributes and the 7 minor attributes. The perfect home business opportunity would score a 98 using these criteria. However, there are no perfect home business opportunities, no matter what the promotion brochures say for a specific opportunity.

Some of the many questions or considerations involved in rating a home business are-

How big is this market?
What is the industry trend?
Is the industry expanding?
What is the nature of the product or service?
Is the product consumable?
How is the product delivered to the customer?
Is there a proven business system?
Is there a good support system?
Is the company well respected?
Will you be ahead of or behind the trends?
Are you early or late in the product and industry cycle?
Do the products provide value for the cost to the end user?
Does the company have any exclusivity or patents?
Regarding the competition, who are you marketing against?
Are there good profit margins?
What is the payment or commission scheme?
What are the sales methods involved?
Is the company “On the Net” and are they E-Commerce enabled?
What level of administration is required?
Is training available from your up line?
How great is the potential to make money in this business?
Do you know someone with experience in this business?
Do you have to do all the work or can you earn overrides?
What is your gut feeling?
Will the company train you?
How soon will my investment come back to me as profit?
Can I work this business at my own pace?
How long has the company been in business?

As you can see from just the limited set of questions above, there are a lot of things to consider before you decide to invest your time and/or money in any home business opportunity.

THE NEW OBJECTIVE APPROACH

This system used to rate home biz opps is based on 11 primary considerations and 7 minor considerations. They are-

Primary
1. Product or service
2. Product price and market competition
3. Company
4. Proven business system
5. Available support system
6. Available training and resources
7. Compensation system
8. Profitability
9. Costs involved – both startup and recurring costs
10.Will I have full control over my business
11.Can I work this business at my own pace

Minor
1. How is the product delivered to the customer
2. Does the product/service have an automated delivery capability
3. Is the company “On the Net” and E-Commerce enabled
4. Are you supplied with business tools to make your live easier
5. What level of administration is required
6. Consider whether you will be ahead of or behind the trends
7. How great is the potential to make money in this business

Using these objective factors will save those looking for home biz opps a lot of time and many dollars that would otherwise be wasted.

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New Approach for Rating Home Biz Opportunities

Type “home biz opportunity” into Google’s search engine and you will get about 10 Million entries. Also, there were 409,212 searches using the search term “home-based business.” This new approach to rating “home biz opportunities” is based on 11 objective major criteria and 7 minor criteria. There are no web sites that only rate home biz opps, only those that review some opps only to point you to their specific opportunity.

Each major attribute can earn 7 points, and each of the 7 minor attributes can earn 3 points each. Ratings will be: Excellent, Good, Average, Poor, and Scam. Excellent requires a score of 90 or above, Good requires a score of 70 or above, Average requires a score of 50 or above, Poor requires a score of 30 or above, and Scams get no score at all. The score totals mentioned above are for all 11 major attributes and the 7 minor attributes. The perfect home business opportunity would score a 98 using these criteria. However, there are no perfect home business opportunities, no matter what the promotion brochures say for a specific opportunity.

Some of the many questions or considerations involved in rating a home business are-

How big is this market?
What is the industry trend?
Is the industry expanding?
What is the nature of the product or service?
Is the product consumable?
How is the product delivered to the customer?
Is there a proven business system?
Is there a good support system?
Is the company well respected?
Will you be ahead of or behind the trends?
Are you early or late in the product and industry cycle?
Do the products provide value for the cost to the end user?
Does the company have any exclusivity or patents?
Regarding the competition, who are you marketing against?
Are there good profit margins?
What is the payment or commission scheme?
What are the sales methods involved?
Is the company “On the Net” and are they E-Commerce enabled?
What level of administration is required?
Is training available from your up line?
How great is the potential to make money in this business?
Do you know someone with experience in this business?
Do you have to do all the work or can you earn overrides?
What is your gut feeling?
Will the company train you?
How soon will my investment come back to me as profit?
Can I work this business at my own pace?
How long has the company been in business?

As you can see from just the limited set of questions above, there are a lot of things to consider before you decide to invest your time and/or money in any home business opportunity.

THE NEW OBJECTIVE APPROACH

This system used to rate home biz opps is based on 11 primary considerations and 7 minor considerations. They are-

Primary
1. Product or service
2. Product price and market competition
3. Company
4. Proven business system
5. Available support system
6. Available training and resources
7. Compensation system
8. Profitability
9. Costs involved – both startup and recurring costs
10.Will I have full control over my business
11.Can I work this business at my own pace

Minor
1. How is the product delivered to the customer
2. Does the product/service have an automated delivery capability
3. Is the company “On the Net” and E-Commerce enabled
4. Are you supplied with business tools to make your live easier
5. What level of administration is required
6. Consider whether you will be ahead of or behind the trends
7. How great is the potential to make money in this business

Using these objective factors will save those looking for home biz opps a lot of time and many dollars that would otherwise be wasted.

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