Were you aware that 60% of small businesses in Australia do not survive beyond their first year? This statistic can be quite disheartening for individuals looking to start their own business, especially if they hope to work from the comfort of their own home.
Does this imply that your business idea is destined to fail? Not at all! There are actions you can take to significantly improve your likelihood of success. By dedicating some time and conducting thorough research, you can be prepared to start off strong. Let’s begin at square one…
The bright idea
To start, it is important to have an idea. Business opportunities are often categorized into four groups.
Providing a current product or service in a market that already exists.
Bringing a current product or service to a different market.
Launching a new product or service in a market that already has established competition.
Launching a new product or service in a previously untapped market.
At this point, there are no boundaries except for what you can dream of. Ideas can arise from various sources, such as turning a hobby into a career, improving upon bad service experiences, or pursuing a talent for personal gain.
Once you have found something that interests you, it is important to evaluate the market and see what options are available.
Passing the test
You have come up with a fantastic idea and are excited to move forward with it. Now, it is time to test it out. For example, let’s say you are passionate about living a healthy lifestyle and want to sell a variety of products that encourage healthy living through a DIY approach.
Inquire with others: Is there a demand for items that encourage a healthy lifestyle? What kinds of products are on the market? Who are your potential competitors, and what do they provide? Do you possess the required abilities to manage this type of business, and if so, what skills are needed? Where would you set up your business?
After answering those questions, you should have a solid understanding of the potential appearance of your business.
After finding some products, you conduct additional research on Vitality 4 Life’s range of lifestyle products. With your background as a dietician and personal experience, you feel equipped to work from home and have more time for your family. While there is already a market for these products, there is also potential for growth. It is now time to delve deeper into this opportunity.
To be or not to be?
It’s time to focus on the details. You don’t want to rush into something and realize later that the budget is not feasible.
To begin, take a seat and determine if you require hiring employees, which entails paying salaries.
If you decide to rent a space, you will need to have the financial means to pay the rent, and the location must be appropriate for your business and target audience (which requires thoughtful consideration of who your target market is). Additionally, you must determine the expected demand for your product or service.
Alright… you’ve determined that there is a sufficient demand for high-quality juicers, sprouters, water filters, and other premium accessories to pursue a distributorship as a home-based business. It is now time to consider and make some marketing choices.
Look at me! Look at me!
Advertising can be expensive, so it is important to ensure that your advertising budget is used effectively. This requires conducting more in-depth market research, focusing on individual interactions. Identify your customer demographics in order to target your marketing efforts towards the appropriate audience.
Create a brief questionnaire and stand outside a few nearby gyms. Make sure to include a combination of open-ended questions and closed-ended questions. Sliding scales may also be helpful.
In our health accessories business, a valuable inquiry could be ‘What led you to discover this gym? Was it through radio, television, newspapers, word of mouth, etc.?’ Asking this question will provide insight into the types of media that are most effective in reaching our target audience.
Decide on a name for your business, create business cards, purchase inventory, and prepare to start conducting business!
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Measure it, manage it!
One of my teachers emphasized that in business, you must be able to measure something in order to effectively manage it.
In order to effectively plan for the future, it is essential to understand and accurately forecast your total sales. This can be achieved by multiplying the number of customers by the average sale amount and the frequency of customer visits per year. By consistently revisiting and applying this equation to your business, you will be better equipped to successfully manage it.
Monitor your profits closely and, above all, make sure to keep track of your cash flow – the actual money you have available in your bank account. Factor in invoice payment periods (such as 14 days or 30 days) when creating your financial plan.
The marketplace operates independently, and it is impossible to anticipate every situation. Consider your concept carefully, ensure that there is a demand for your product or service, conduct thorough research, promote your business efficiently, closely monitor your financial accounts, and prioritize cash flow.
While it may not be flawless, by following these straightforward steps, you will be far ahead of numerous other new small businesses. If you have come across a promising home-based business opportunity or have your own product or service to promote, you are already on the right track.
