by Karen Ellis

Created on: December 14, 2009   Last Updated: January 22, 2010

The freedom of running your own home-based business is an alluring way to make a living. If you have a go-getter type of personality and a burning desire, you may survive your new endeavor. However, it will take a lot more than those two attributes to create a flourishing home-based business. There are benefits, yet without the ability to grow your new business, eventually it will fail. There is a formula for creating a home-based business that will help you break through the odds.

 Passion and perseverance

Choose a business that stirs your passion and is a good fit. Without passion, you will eventually grow tired of this all-encompassing endeavor. If you love dogs, for example, consider the variety of home-based businesses available. Dog walking, dog sitting, dog hotel (or resort), pet treats (bakery), pet photography, dog clothing or obedience training are good examples. Consider skills you possess that will enhance your choice. Find a twist that makes your business unique.

Finances

Start small. One of the biggest mistakes new home-based business owners make, is borrowing money, cashing out their retirement or savings. Complete the “must-haves” as funds are available. If you have a job, start your business part time. When your business has grown enough to replaces your paycheck, consider going full time.

Homework

Get educated. Read books, take classes and go to seminars. Find a niche for your product. If your small town market is saturated with ten dog-walking services, switch to a gourmet dog treat bakery. You can sell on the Internet, to veterinary offices, pet boarders and at pet shows.

Branding

Brand your business, uniquely. Pick a unique name and logo that tells customers, clearly, what your business is in an unforgettable way. Include it on your packaging, business cards, vehicle and website. Branding doesn't stop at the visual. Make sure your product or service is special. Put your best foot forward in all that you do.

Plan

A business plan is important. Start your short-term plan, as suggested before, slow and easy. As you are successful, have a plan in place for the next steps (product or service) you will offer. In other words, start small, but plan big.

Taxes and legalities

A home-based business affords many tax breaks. You can deduct vehicle mileage, computer usage, home work space and product supplies. An accountant can advise you and prepare your income taxes. An attorney makes sure your business is set up properly.

Listen

Always have your ears open. The most important thing you can do is to listen to your customers. They will give you important clues as your next product or the next service needed. This free advice cannot be acquired in any other way.

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