5 Tips for Starting a Home Business

5 TIPS for Home-Based Business Entrepreneurs

Have you ever heard that only a small part (5%) of 'all' Home-Based Business entrepreneurs achieve success?

Do an online research on your favorite Search Engine and you will understand what I mean.

In this article I'm going to show you the KEY to Home-Based Business entrepreneurs success; you'll find out what makes an entrepreneur succesful in the home-based business field.

Below are 5 TIPS for Home-Based Business Entrepreneurs:

1. It's their mindset that brings success

Serious entrepreneurs have 'programmed' their mind to succeed no matter what. They don't lack focus on their home-based business and let nobody stop their plans in achieving what they want.

They know what they want and they have the DESIRE to succeed. If you don't know exactly what you want when it comes your home-based business, think about it again and re-consider your plans, what you want to achieve, a get-rick-quick or a profitable, long term business.

2. It's their start-up plan that brings success

Smart entrepreneurs know that it takes time to set-up and grow a profitable home-based business. They plan to succeed. They have a start-up plan that might fail but they never give up and start again with a better plan.

Serious entrepreneurs know that it takes discipline and time to build a strong and solid home-based business, which delivers ongoing income through many years to come.

3. It's their initial RESEARCH that brings success

Smart and serious entrepreneurs know the importance of market research. They know that in order, for a home-based business to succeed, they have to research their target market (their potential customers) and study their competitors.

Research your target market and study your competitors in order to have a long-term, profitable home-based business.

Know what your customers want and give it to them. Keep an eye on your competitors, study their offer(s) and make sure you come up with a better deal than them.

4. It's their marketing strategy that brings success

Study each successful entrepreneur in your marketing field and you'll notice how they market online / offline.

Each of them have their own 'unique' marketing strategy but they use the same basic principles.

Don't re-invent the wheel. Use the main marketing concepts that are proven to work but try to improve and adjust them to your own situation. Make them work for your home-based business. Make your offer better and unique than your competitiors if you want to WIN in this business, or simply quit (I know that's no what you really want!)

5. It's their investment that brings success

Smart entrepreneurs know that the KEY is to work SMART, not hard. If you don't have the required skills to develop a NEW marketing tactic for your home-based business why not hire a consultant who knows his stuff?

If you have 'enough' money why not invest in someone who can help you grow your home-based business and give me something to work at too?

What is more valuable to you, your time or your money?

A serious entrepreneur is ready to invest (both time and money). He knows that he will build a long-term successful business for him and the one he loves (friends, family, children, etc.)

The final (or first?) STEP you need to take in order to succeed is to act (take ACTION!). Yes, put into practice what I have told you above (the 5 TIPS for Home-Based Business Entrepreneurs) and you'll succeed, no matter what. Trust me!

10 Essential Tips for Entrepreneurs

10 Essential Tips for Starting Entrepreneurs - Ignore these at your Peril!

1. Do What You LOVE: If you've chosen your business because you read that this niche was the next hot one, or because your favorite uncle (or your best friend) thinks you'd be well-suited for this business, you may as well pack up now and save yourself some time and money. If you don't love what you do, it will show...potential customers will know it and will go elsewhere. Is it possible to be successful anyway? Sure -- but it won't be easy and it won't be fun...and isn't that why you want to be in business for yourself anyway?

Instead, choose what you love. You'll know what that is when you find yourself being incredibly productive, forgetting the time passing by, and not being able to wait to get up in the morning to do more! At Solo-E we call that being juiced...but whether you call it being in the flow, or the zone, or whatever, FIND IT!

2. WRITE DOWN Your Business Plan: As a small or solo business owner, you still need a business plan. Even if you aren't getting a loan! Would you invest thousands of dollars of your own money buying stock in a company that didn't have a written prospectus? (I hope not!) Then why would you spend thousands of dollars AND hours of your precious time on a business that doesn't have a written plan?

Write your plan, get it critiqued by professionals, and most important, BE READY TO CHANGE IT. This may seem counterintuitive...why bother writing it down if it's just going to change? Because writing it down makes it more clear...and helps you get to the next stage of learning and planning and revising. It's critical--67% of businesses that failed had no written business plan. Want to play the odds?

3. Multiply Your Expected Startup Costs by Two--or Maybe Three: When I started my business, an honors MBA grad with 15 years of solid business experience behind me, I figured I was smart enough to estimate my startup costs accurately. I knew all the things I needed and made conservative estimates and I was still WRONG! That's right, I was still off by a factor of almost three. Don't make this mistake! One of the biggest reasons small businesses fail is because of lack of capital. Give yourself the best possible start by saving or acquiring sufficient startup funds NOW. Before you start!

4. Make Your Market Niche as Small as Possible: Again, this is counterintuitive--shouldn't you try to appeal to as many people as possible? The paradox is that the more you try to appeal to EVERYONE, the less you will appeal to ANYONE. Let's say you are selling your house...would you rather list it with the agent who operates in 14 counties, sells both commercial and residential real estate, and sells everything from cottages to estates? Or would you pick the agent who specializes in your community, selling only houses in a well-defined price range that she knows extremely well? Ruthlessly define your niche, make it as small as possible, and stay true to it. You'll thank me later!

5. Do Marketing Your Way: The temptation is to choose all the marketing methods that the competition uses. To stay with tried-and-true marketing channels. To place advertisements that you know nothing about creating, or make cold calls that give you heartburn. Why? Because (all together now) "that's how it's always been done."

It's difficult to stand out among your competitors when you are doing the same kind of marketing! So instead, look to your strengths. What do you like to do? What are you good at? Then choose three marketing methods that play to those strengths. If you need ideas, check out 136 Ways to Market Your Solo Business, another article at www.Solo-E.com.

6. Remember the Most Important Ingredient in Your Business--YOU: Business-owner: know thyself. Spend some time learning about who you are and how you are unique. Then let that uniqueness shine through in your marketing, in how you run your business, in everything you do. Don't hide your quirks--celebrate them!

Customers go to small and solo businesses primarily because they are looking for a personalized experience. They want a relationship with you as the owner of your business. If you try to come off as who you think they want, they'll smell right through that and not come back. Be who you are, and trust that who YOU are is going to be attractive to the right people.

7. Build Your Business by Building Relationships: Being a small or solo business owner isn't about sitting in the corner alone. Actually it can be--and that isolation is what drives many out of business and back into a "job". Build relationships to survive! Start with your colleagues--others you know who are at the same stage of business as you, or are farther along and willing to mentor you.

Next, build relationships with potential customers. Ask them what they want! Then create products and services based on their input and come back and show them what you have done. Get feedback, tweak, and maybe make your first sale. Stay in touch with your customers even after they leave you.

Last but not least, build relationships with your competitors. You might be able to do this right at the beginning, simply by asking them for their advice. Surprisingly, many ARE willing to share their secrets if you just ask. Later on, build cross-referral relationships, co-marketing alliances, and other relationships that are win-win for you, your competitors, and your customers.

8. Don't Accept a Customer Just For the Money: This is probably the hardest advice for new business owners to apply. Especially when there is a job, a project, a potential client, just outside your niche, that could keep your business solvent for the next six months. Don't do it! Taking on a client outside your niche inevitably results in frustration for you, dissatisfaction on the part of the client, and in the end, usually costs you more than you make. Ask any successful business owner and they'll tell you this is true!

9.. Don't Do Everything Yourself: It's so tempting to fall into the self-deception that "it's cheaper for me to do it myself." IT"S NOT! If you aren't good at something, for instance bookkeeping, it will probably take you 2-3 times as long--time you could be spending doing things that are essential for you to be doing personally, like writing your business plan or deciding your marketing strategy. Put sufficient capital into your business upfront so you CAN hire help right from the start. Your business will get off to a quicker start because you aren't distracted by time-consuming tasks that drain your energy.

10. Assemble Your Support Team: Start with the people who will help you do the things you aren't good at. Some examples: bookkeeper, marketing writer, web designer. Then add the people who give you professional business advice: a lawyer, an accountant, a business coach. Finally, include the people who support you personally: your family, friends, and colleagues.

Don't forget to be part of other's support teams, too. Share your expertise at Solo-E, start a networking group where business owners support each other, share a referral with a colleague. Solo Entrepreneurs supporting other Solo Entrepreneurs is what will make us all successful!

Business Plans for a New Business

Need a Business Plan

Ok... so you've finally reached that stage in the development of your home business to get started. You've done the research, you have a game plan and you're ready to go except for one small detail... you need money. Whether it comes from a loan or from investors it doesn't matter but you need a good dose of seed money to put all your hard work and planning into action. However, regardless of who hears your money pitch before they give you a dime they will want see your business plan.

Business Plan - What Is It?

A good way to think of a business plan is that's it's a document that provide answers to the type of questions anyone who may provide financing would like to know about your home business. You will not get outside funding without one, because the people giving you the funding will insist on one because it helps them to know that you've thought through what you're proposing to do. A business plan says to them... "I've considered this from every angle, and here's what I've come up with".

Business Plan - What Does It Include?

What is your product or service? This is the first question every business plan should answer. You must explain in the clear, concise language what in the world you plan to produce or what service you plan to provide. You will also want to include why you've chosen this particular product or service.

Who are Your Customers? After you've explained your product or service, the next step is to identify who you plan to sell your product or service too and why. The demographics (age, sex, language, country, state or city, income, etc.) You need to clearly identify your customers in order to properly target your advertising, packaging, pricing, et.

What Makes You Different? You need to identify the "primary factors" that will make your business different than other businesses you'll be competing with. What niche are you filling that they are not or what do you plan to do to fill a particular void in the market that you've identified?

What are Your Expenses? Your start-up expenses include any equipment that you need before you can get up-and-running, while your day-to-day expenses are staff costs and supplies.

Need a Business Plan

Avoid Christmas Debt

WHY IS DEBT A PROBLEM AT CHRISTMAS?

Christmas puts a great strain on the family budget. There is enormous pressure on everyone to spend a lot on presents and entertaining. It is particularly difficult if you have children who want the latest and most expensive toy because they have seen it on the television and "everyone else has got one ".

National Debtline experiences a huge increase in the number of calls it receives in January, February and March when people start to feel the effects of having missed payments on essential bills to fund the festive season. This factsheet outlines some of the pitfalls of Christmas and how to avoid them.

Visit www.RemoveDebt.org for more advice

PLANNING AHEAD

• Draw up a personal budget to work out how much you have to pay out on all your essentials and make sure you have these covered. Our self help information pack "Dealing with your debts" shows how to do this.
• Make sure all your priority bills are being paid, e.g. mortgage/rent, gas, electricity, water, council tax and housekeeping.
• If you can decide how much you can afford to spend at Christmas in advance and stick to it, you are less likely to skip payments on essential bills which will need catching up with in the New Year.
• Try and spread payments for presents over as long a time as possible, so lump sums don't have to be paid all at once.
• Try to avoid expensive credit offers in shops, no matter how tempting they may seem.

Visit www.RemoveDebt.org for more advice

Care with Credit Card Charges

Many credit card firms have increased their interest rates in the last three months. Interest rates are the charges we have to pay for failing to meet the minimum monthly payment on credit cards.

The list of UK credit card companies that have increased some of their charges includes not only American Express and Barclaycard, but also most of the UK's biggest banks, such as the Halifax, HSBC, NatWest and Lloyds TSB, plus a host of other major card issuers.

In March, the Competition Commission imposed rules to stop store card customers being overcharged. Most of the country's debt mountain is due to the accumulation of mortgage borrowing which has risen sharply, in line with house prices.

The British Bankers Association reported recently that borrowing on credit cards had fallen for the fourth month in a row, the first time there has been such a decline. It attributed this partly to borrowers being more cautious. But it might also be due to the continuing switch of spending from credit cards to debit cards.

Saving for your Childrens Education

Savings bonds are an effective way to save for children's college costs

Parents preparing for a newborn have to make many preparations for their new arrival. They need to get the crib and nursery ready, make sure they have plenty of clothes and diapers on hand, and some forward-thinking parents are even setting up a college funding plan for their newborn.

While this may seem extreme, the fact is that it is never too early to start thinking about a child's educational future. College costs have consistently climbed in the last 10 years, and there is little reason to expect the trend will level off in the near future. In fact, economists estimate that collegiate expenses will climb at a rate of five percent annually; meaning that by the year 2022, a year at a private college, including tuition, room and board could cost $69,940.

As startling as this figure is, the earlier parents start saving for these costs, the easier affording college will be.

One reliable way to save money for a child's education is through an Education and Savings Bond. These bonds, called series EE and I Bonds, not only allow parents to earn interest on their investment, but enables qualifying parents to exclude the interest income from their taxes when the bond is redeemed.

To make the most of this program, parents must fulfill several criteria:

Parent's Eligibility: The parent must be 24 years or older, and the bond must be in the name of either or both of the parents, not in the child's name. (However, the child can be named as a beneficiary.) If the qualifying parent is married, they must file a joint tax return.

Eligible Institutions: Most post-secondary institutions such as colleges, universities and vocational schools must meet certain federal assistance standards. (As a general rule, institutions that qualify for the guaranteed student loan program will also qualify for the bond program.)

Qualified expenses: Only expenses such as tuition and lab fees are eligible under the program. Books, room and board and other living expenses do not qualify.

For parents starting a college education fund for their children, Education and Savings Bonds could be an effective way to start.

Prioritising Debts - Who First?

Often the most challenging place to start whenyou get some spare money and need to pay some creditors.

In general use this 7 point rule to repay your debts in the following order:

1. Debts owed to people that will hurt you, as obvious as this may sound.
2. High interest rate debts. These will usually be 'rolling credit' debts, such as credit and store cards.
3. Personal loans from finance companies, perhaps for a car, for example.
4. Personal loans from banks and high street lenders.
5. Second mortgages. Though these are secured, they are often at high rates of interest.
6. Loans from friends and family members.
7. Your mortgage.

What Credit Score Really Means.

Credit score can affect everything from whether you qualify for a mortgage to whether an employer hires you, but have you ever made a plan to consciously improve your score? If not, it can be costing you dearly.

"When it comes to mortgages, auto lending and credit cards, the higher your score, the lower the interest rate you're going to pay," says Barry Paperno, manager of customer service for credit-scoring company Fair Isaac, which created the widely used FICO credit score. So the time and effort it takes to improve your credit score could save you hundreds of thousands of dollars over the course of your lifetime.

Loans and scores

For most people, a mortgage loan is where they'll reap the greatest rewards from an improved credit score.

"For the past two or three years, mortgages have been the lowest in 30 or 40 years, but that doesn't apply to everybody," says Janette E. Jones, mortgage consultant for American Home Mortgage in Bethesda, Md. "That applies to people who have excellent credit. Someone who has excellent credit can actually get a fixed-rate loan for 5.5%. However, for people who have less-than-excellent credit -- and I would say that's anything below 650 (on the FICO scale of 300 to 850) -- they're looking at an interest rate that's 1% higher, at the bare minimum."

Paul Clitheroe - Part 3

Here is part 3 : Managing your Money

Paul Clitheroe - Part 2

Part 2 : Managing Debt.

Paul Clitheroe - Part 1

Renowned Financial Adviser Paul Clitheroe gives you advices on how to build your personal finance.

This is only a short clip but i'll post some more to build the series

Free Debt Advice

If you live in the UK and have credit problems check out this not-for profit website that links you to the guys that can help.

Consolidation Loans Explained

Beware of 'Informal debt consolidation'

The are several organisations that advertise in the National newspapers that pose as "specialists" advising that if you owe over around £8,000 or more, they "can reduce your debts without the need to borrow". Theses "specialists" will offer services and assistance; but beware! Most of these "specialists" are intermediaries with no relevant qualifications and their advice could prove costly and inadequate.

Particular care should be taken when considering any propositions which promote 'debt consolidation' or ' debtor-creditor arrangements ', sometimes with consultancy agreements stipulating fees which people are expected to guarantee.

The UK Insolvency Helpline's panel of professional advisers are qualified, regulated and accountable. The average person can rely on our advice when considering personal obligations under the 1986 Insolvency Act and any restructuring of businesses. A "specialist" solely registered under the Consumer Credit Act as a Debt Counsellor need not be qualified, and is not registered or accountable under the relevant insolvency legislation. If in doubt please contact us for advice.

Intruder Alarm Systems & Lower Insurance

Its a known fact that if you invest in a certified intruder alarm system your insurance company will offer you a reduced insurance premium.  Whilst it means paying money up front you'll save in the long term. Often discounts upto 15% can be negotiated with your insurance broker.

Get a range of quotes before you install and first speak to your insurers to see if they demand a specific brand or level of security.

Searching your local business directory for a home security quotation is the best place to start.

Debt for Private Education

The UK Observer newspaper reports parents are going into massive debt to ensure their children have a good education.

This is a difficult quandry, for debt is the cancer of the modern world, though educating our children is often seen as the sweet cure to future maladies.  If there is one thing worth enduring debt for, its giving your children a good start in life.

Ensure the school you want to send them is actually as good as it claims, many just play of their historic results, as oppose to recent stats.

Also check other costs if you go this route: uniform, books, trips... these are often big hidden costs at private schools....

Parents who have not got their first choice of state school for their children or are worried that their local schools are just not up to scratch often feel they have little choice but to send their children to private schools - even if that means pushing themselves to the limit financially. The news that more and more parents are getting into debt to pay school fees is a sign of the lengths some families will go to for their children's education.

http://observer.guardian.co.uk/cash/story/0,,1874113,00.html

Credit Card Fees

April 2006 The Office of Fair Trading (OFT) made a recommendation that credit card companies reduce their credit card penalty fees to a maximum of 12 pounds. This is now filtering through to the High Street (excuse the pun)

After wrangling and reluctance most UK credit card companies agreed to reduce their penalty fees albeit sometimes in graduated fashion.

The OFT announced last week that all credit card suppliers now have indeed agreed to fully reduce their credit card default fees, the majority by at least a half. This is good news for all.

Consumers are still faced with credit card penalty fees for late payments and unauthorised overdrafts. Even though the fees have been reduced to a maximum of £12, this is still a considerable amount to be charged.

So you still need to try and avoid these pitfalls by following simple rules and guidelines outlined by your specific CC company. Nothing is a replacement or a solution for responsible spending.

Help to Pay a Mortgage

Many people I know are having problems with their mortgage payements.  Its a growing problem and one thats far from going away.

I always tell them there are many ways to get help to pay a mortgage, which dont mean more debt or fear of retribution !

Firstly the best place to start is the mortgage lender themselves, any insurance policies you may have and the Department for Work & Pensions (DWP) can also give you advice on your rights.

Mortgage lenders often offer types of 'Rescue Scheme' whereby they buy back your home or part of it. As a result of this you become a tenant or part tenant.  This is often the best solution if you cant see strong improvements in your financial incomes. It is worth asking your mortgage lender if they operate this scheme, especially if you want to remain in the property and have very little or no money to offer.

Always always check that for the first port of call you have claimed under any mortgage protection insurance you may have. If you do not understand your terms and conditions of insurance get some good advice from an accountant or bank advisor

You may be able to claim extra benefits from the Department for Work & Pensions (DWP) to improve and raise your current income levels if it is thought to be low. These can include Working Tax Credit, Income Support top-up etc; depending on your situation you may qualify for disability benefits based on personal circumstances for yourself, partner or children.

Contact the DWP or Welfare Rights for advice.

For short term fixes, a very good option is to take in a 'lodger' or a 'tenant' may be a possible short/long term solution, however if you are claiming any state benefits then you would need to check how this may affect your entitlement to your existing benefit either by contacting the DWP or your local advice service.

Most importantly, dont panic, and dont leave it until the bailiffs arrive !

Dealing With Debt - The Smart Way

Dealing With Debt - Debt Problems

Credit is assuming a larger role in the life of the average person. Living beyond your means was once considered sinful; now it is a common way to spend anticipated future earnings. This can be good or bad, depending on the individual situation. Certainly, credit is a good idea for the high priced capital items, such as cars, or household appliances; because of the length of time it would take to save and buy such items, buying on credit is a sensible way to be able to enjoy the goods now, and pay later.

Assessing Your Financial Situation - Debt Problems

In this fast moving world, we sometimes lose track of certain parts of our lives. Personal finances are often complicated; with increasing pressure on time available, many people let this aspect of their lives slide. In fact, it is probably one of the most neglected areas. It is too easy to adopt an attitude of "spend, spend, spend…" until the money runs out. However, this policy eventually turns sour, and something needs to be done. As stressed earlier, the sooner you recognise that there is a problem, the better. The next step is to do something about it....

Come back as we delve deeper into debt problems in this bi-weekly advice blog

Unfair British Inheritance Tax

According to a recent study British people think inheritance tax (IHT) is unfair. Three-quarters of those surveyed said the tax was unfair, while just 8% thought it was fair. The tax is paid at 40% on the value of estates beyond the £285,000 threshold and the government is predicted to raise £3.6bn this year from IHT.

One in 10 people estimate the value of their estate, including their property and other assets such as savings and investments, jewellery and cars, at between £300,000 and £500,000. This puts them firmly above the threshold, according to insurer Friends Provident.

Almost a quarter of the 3,200 people surveyed believed their wealth could be between £100,000 and £300,000, potentially leaving their estate open to tax. Tax experts Grant Thornton predict that 3.6m estates will have to pay IHT by 2009.

People continue to be confused by inheritance tax rules, with only 39% aware that the current threshold is £285,000 and just over a quarter aware that estates over this value will be taxed at 40%.

Similarly, 39% of people know that gifts or transfers to family and friends made at least seven years before the benefactor dies will not be liable for tax. But only 28% realise that people can give up to £3,000 each year tax-free. A small minority, 6%, have started moving their assets onto their nearest and dearest.

Holiday Currency

Courtesy of www.qck.com


It is "well worth" changing leftover foreign currency back into sterling following a trip abroad, according to Kevin McAdam, head of travel services at the Post Office.

New research by the Post Office indicates that 33 million holidaymakers hoard leftover spending money at home, rather than visiting a currency exchange bureau on their return.

Figures also show that despite the Post Office indicating the "quick and easy" way in which money can be exchanged, one in five people still hold onto £50 or more in foreign notes.

More money is being brought back than ever too, with Britons returning with an average sum of £27.78 – 63 per cent more than in 2004, the Post Office suggests.

"It's easy to stash your leftover foreign notes and coins in a drawer when you get home from your travels and forget about it," said Mr McAdam.

"But with one in five of us claiming to bring back £50 or more, it's shocking to discover that so much money is being wasted."

"It's quick and easy to change your currency back and well worth it considering how much people are now bringing home. The best buy-back deals can be found at independent high-street providers offering zero per cent commission," he added.

A report last month by the Post Office showed that Britons prefer to use money when they are abroad, rather than credit cards.

Supermarket Car Insurance

Sainsbury's Bank is offering motorists the opportunity to assess their car finance costs by providing a new free guide. The bank states that the annual cost of running a car, including petrol, car insurance and road tax, has increased by around 7.2 per cent.

Offering drivers an insight into ways they could reduce car finance costs, the guide shows that a number of savings could be made.  Taking into account running costs, as well as interest paid on personal loans taken out for vehicle purchases, the average annual cost of motoring is £2,202, the banks indicates.

Richard Clark, car insurance manager at Sainsbury's Bank, says: "The cost of motoring has been rising steadily but you can keep this in check." "For example, shopping around for car insurance and your fuel could make a real difference to your motoring bill at the end of the year." "However, it is not only the costs associated with running a car that motorists need to tackle but also the price they pay for them," he adds.

Mr Clark also indicates that the UK could save a collective £512 million by haggling over the cost of a car in the first place. Alliance & Leicester revealed yesterday that nearly half of all people who borrow money to buy a car could be getting a better deal.

Loan Sharks

If you want to remove debt, there are some people to be very wary of.  LOAN SHARKS

You may be dealing with a loan shark if:

* the salesman is pestering you or is particularly pushy
* the interest rate is significantly higher than other loan lenders
* the company is reluctant to show you the loan terms and conditions
* you are asked to tie yourself into a long-term contract

If you are in doubt as to a lender's credentials, it's a good idea to check this out. You can find out whether a financial services firm is regulated on the Financial Services Authority (FSA) website.

Or visit this remove debt help site that i found for a good source of registered companies that can help.