There are literally thousands of home based business ideas that consumers can consider as a hobby or even as a full-fledged business opportunity. The real question is how do you go about deciding which one will be profitable and which one will meet your personal needs for fulfillment and satisfaction. We will explore some of the criteria associated with this important decision and help you get started with your assessment in this article.
There are at least three main areas that all new entrepreneurs should consider as part of their assessment of home based business ideas. These are business viability and profitability; compatibility with your personality and needs and opportunities for long term growth both as an individual as well as for the business opportunity.
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Viability and profitability is a key criterion, since no matter how much you might enjoy the business, if you cannot make sufficient money to pay the company bills and yourself, then you probably should consider another business. Many entrepreneurs will leap into something before they have at least completed a basic business profitability assessment. This analysis should include as a minimum the following attributes: study term should be at least 2 years, market potential, sales forecast, cost of sales, cost of purchase of product or manufacture of the product, all operations expenses, capital requirements for equipment and buildings, salaries, taxes, benefits, cash flow, profit and loss and finally funds that you may need to borrow to get started. While this seems like a significant amount of work, it can pay off by avoiding investment of time and resources into a business that never had a chance in the first place of being successful.
Next, entrepreneurs should make a very personal assessment of themselves to assess if they have what it takes to get a home-based business started. Long hours, dedication and perseverance are often needed, as well as dealing with many startup related issues. Talk to other people in similar situations to compare notes and understand if you can deal with the rigors of starting a successful home base business.
Finally, everyone needs to feel successful, they need to feel that they accomplished something and they need to receive positive feedback from whatever they do. Although it is always difficult to make this assessment, it is important to assess your home based business idea from the perspective of whether you will obtain the kind of long term personal growth in terms of challenge, learning, and reward. Can the company grow over time into an entity that you will gain these rewards from in addition to the monetary reward?
Each of these areas takes some sole searching and you may not reach an answer quickly. However, it is important that you complete these assessments in order to make the correct business decisions as well as personal decisions when you are assessing new home business ideas.