Hi Every year, thousands of people start new home based businesses. Some fail. Others succeed on an epic scale. For example, Steve Jobs started Apple in his parent’s garage. Amazon and Google both started as home based businesses. J.K. Rowling wrote the first Harry Potter book in a small flat. Granted, not everyone who wants to start a home based business aspires to be a billionaire. Yet, how do you know what is the best home based business to start?
Well, it depends. I recommend that you think of DELL. As you might be aware, Dell Computers was also started a home based business. Well, maybe a dorm based business might be a better description. So, what do I meant when I say, “Think DELL?” DELL is a tool that will help you evaluate a home based business idea. DELL is an acronym that stands for four, simplified categories of things to consider: Demand, Earning, Like and Legal.
Use DELL to Determine Best Home Based Business To Start
How big of a demand will there be for the the product or service that you are thinking of selling? No demand = no sales. Low demand = low sales. Obviously, it is very hard to keep a business operating if the sales are inadequate.
When considering demand, you also need to seriously consider why potential customers purchase would purchase from your rather than an existing business. Would you be filling an existing gap in the market?
For example, once upon a time, there was a big need for people that could repair covered wagons. The rough roads and fields caused the wagon wheels to become loose and/or break. (At least that is what I have seen in the movies). From what I read, the cart and covered wagon mechanics, the wheelwrights, “as vital in their time as auto mechanics are for us today.” However in today’s world, there is not the need for a wheel wright in every major town.
At the same time, people still use horse drawn carriages for tours of historic areas, weddings and parades. Some horse enthusiasts also enjoy driving their horses. Thus, there is still a small demand for a people that maintain and fix wagons and carriages.
The key take away here is that you need to understand the demand. You need to understand who your target customers are going to be and how frequently they will purchase from you.
What is the earning potential for your product or service? Consider how much your competitors are charging for a similar product or service. What will you be able to charge? Will the likely earnings be enough to satisfy your needs? If not, set the idea aside but don’t completely forget about it.
You never know if circumstances will change and it becomes feasible when you are not expecting it. As an example, I had egg laying hens for three years. I never gave any serious thought to selling the eggs because I didn’t think that I could earn enough money to make it worth while. So, I just gave them away. Yet, people kept offering to buy my eggs. I discovered that the demand for “farm” fresh eggs is higher than I anticipated. So, I am currently revisiting whether or not I should sell fresh eggs.
In the cases of Apple, Google, Amazon, Harry Potter and Dell Computers, there was and there is a huge demand for those products and services. Even though they started out as home based businesses, the founders became very wealthy people.
On the other hand, someone that chooses to open a pet sitting business will not have as large a pool of potential customers. That person’s earnings will be limited. Yet, the level of profit from the business could be perfectly suited for that owner’s desired lifestyle. That is why you need to seriously consider how much you need to earn.
Honestly, do you like this field? If you like it a lot or love it, I recommend you choose something else or just keep your JOB. The more you like the business concept and the challenges that it will provide, the greater the probability that you will do what it takes to make the business a successful venture. The more passionate you are about the business concept, the easier it will be to ignore the people that do not believe in your dream. Additionally, you will be less likely you to quit when the going gets tough. On some days, things will get tough. Anyone that tells you otherwise, is trying to sell you a fairy tale.
1. Will you be able to start and run the business for a while without robbing a bank? I think it would be really hard to operate a home based business while you are sitting in a prison cell.
2. Make certain that you can legally operate the type of business that you are thinking of starting from your residence. State, counties, towns, home owners associations and/or landlords may have restrictions that will affect what type of business you are allowed to have. For example, if you are in Texas – a marijuana business is not going to be allowed. Yet in Colorado, a marijuana businesses could be allowed if you comply with all of the rules.
In all probability, you would not have any problems running an online internet marketing business or online sales business from your home. However, zoning restrictions may not allow you to run a mechanic shop from your garage. Zoning restrictions may not a stream of customers and employees to frequent your home business. There may be ordinances regulating signage. You need to check on this BEFORE you start your business unless you want to invite unnecessary trouble into your life.
3. Additionally, you will need to determine if there are any federal, state or licenses or permits required to legally operate the business that you are thinking of. If you have already been working in the field, you may be aware of the requirements. However, if you are venturing into a new area, you will most likely need to do some research. In Colorado, for instance, the Department of Regulatory Affairs regulates 236 businesses and professions. The Department of Public Health regulates the food industry, nursing homes, marijuana industry and others. The Secretary of State regulates public notaries.
Take the time to do the research into license and permit requirements. At the same time, be on the look out for provisions or exemptions that may related to super small businesses or farms.
The best home based business to start varies from person to person. When evaluating a home based business idea, think about DELL.
- Demand: Is there a demand for the product or service
- Earning: Will you be able to earn enough profit to meet your need?
- Like: Do you like or love the business?
- Legal? Can you start it without robbing a bank? Are you legally allowed to run the business from your home? Does the goverment require any other licenses or permits?
Your answers to these questions will help you to determine the best home based business for you.
Upcoming May 2017 Articles
In the upcoming days, I will add links to the following articles as I get them completed.
The plans are:
1. Most Profitable Home Businesses
2. Least Expensive Home Businesses to Start
3. Ideas for Online Home Business
4. Home Business Ideas for Animal Lovers
5. Home Business Ideas for Stay at Home Moms or Dads
6. Home Business Ideas for Retirees
7. Home Based Business Ideas for People that Love to Travel
8. Home Business Ideas for Creatives
9. Home Business Ideas for Gardners
Are there any other ideas that you would like me to add to my list?
About the author:
Sondra loves to help potential small business owners turn their dreams into reality by providing encouragement and a realistic analysis of the situation. In order to do so, she draws upon 20 years of diverse experience that has included titles such internal auditor, special projects auditor, CPA, business coordinator, finance coordinator, real estate broker, small business owner, farmer and online entrepreneur. By the way, Sondra thinks that hogs, as in the kind that go oink oink, are cute.
Colonial Williamsburg: History.org