Home Based Businesses

In this discussion, we are going to focus on issues pertaining to how to start a home-based business. Many of the most successful businesses were actually started it in someone’s home. We’re all familiar with the many fables and legends of individual starting multi-billion dollar enterprises in their basements and garages and certainly you can develop a highly successful business that is based from home. Of course, only a small and almost infinitely small fraction of the use of home-based businesses will become as successful as the next Microsoft were Facebook, however, you can develop a secondary income for yourself to the development of a home based business. In fact, over time, your home-based business may become your full-time job. When you are starting a home-based business, the most important thing to do is to first determine what type of business at you ultimately seeking to start. Many people, with the advent of the Internet, have taken the starting small e-commerce businesses were small blogs are able to generate a modest amount of income on a monthly basis. As such, we fully recommend that you harness the power the Internet when you are starting your home-based business. However, not all home-based businesses need to be based on the Internet or have a nationwide presence. For instance, if you are very good with numbers and have a strong background in bookkeeping, then it is very common for you to open up a part-time bookkeeping practice that is based solely out of your home.

One of the downsides to opening a home-based business that operates with local clients if they can come off as unprofessional that you simply work out of your home as it pertains to the services that you render. As such, you may want to work directly with the client at their location or providing services such as bookkeeping or other personal services that do not necessarily need to be rendered within your home. Over time, you may want to be to able to afford a small office space that will allow you to give your business and more professional look as it pertains to working with local clients.

It should be noted, on a side discussion, as it pertains to financing a small business it is somewhat typical. The small business administration typically does not allow for loans made to home-based businesses. This is primarily due to the fact that one of the reasons why the small business administration was created was so that traditional businesses could be launched and individuals would hire other people within their small business facilities. As such, you may be an excellent candidate for a SBA loan however you are going to need to move into a traditional facility before you’re able to receive this type of financing. However, there are a number of other types of financing methodologies available to you. This may include using some of your own savings, using some income from your 401(k) or IRA accounts, taking out a personal loan, using credit cards, or working with a potential investor that can provide you with the financing that you need in order to launch a business. Of course, there is no proper way to ever play in the business, there are a million ways to skin a cat, and as such you may want to tap some unconventional means as it pertains to obtain financing for your home-based business. As it pertains to using credit cards or personal loans in order to finance your home-based business, this can be a very expensive endeavor. Most personal loans are unsecured by any type of tangible property more tangible asset typically has a substantially higher interest rates in the back associated with a secured loan. In most cases, your interest rate can vary anywhere from 9% to 20% per year depending on your overall credit score. As such, it is absolutely imperative for use loan financing in order to start your home-based business recommend that you very carefully to all potential financing options for using personal loans or credit cards. In time, there are other types of lending facilities that you can use as it pertains to receiving the financing that you may need on the ongoing basis.

After you determine which type of home-based business one a start, it is time to start the preparation of your business plan. Here, you’re going to want to create a blueprint of how you intend to provide your services or products the general public, how you will integrate certain procedures and protocols into your day-to-day activities relating your to your home-based business, developing a well focused financial model that has a profit and loss statement, cash flow analysis, balance sheet, pregame analysis, business reaches page, and general assumptions page that will be used in conjunction with your company, and a detailed overview of how you intend to market your business.

As we discussed before, you can use the power of the Internet to market your business, even on a local level areas many home-based businesses are now also turning to popular social networking websites such as Facebook, Flickr, tumbler, and other popular portals in order to get the word out among people they know. You have a number of contacts within your local area that have a specific need for a specific type of service then you may be able to reach out to them directly by being able to directly contact them via e-mail and through the affirmation social networks. In fact, we strongly recommend that you create a Facebook page and work-related social networking page that showcases your home-based business in exactly the services that you provide as it relates to your company. If you are engaging in e-commerce operations, then it is extremely important for you to invest heavily in promoting your business through social networking media, search engine optimization, and pay per click marketing. In time, you’ll find a number of people are able to find your e-commerce platform very quickly and that your infant every turn over rate will be extremely high. Although this is somewhat of a general article pertaining to how to start a home-based business, you are, again, engaged in the business of selling products on an e-commerce basis than we strongly recommend that you also use very popular third-party selling platforms such as eBay and Amazon so that you are able to, again, had a very brisk inventory turnover as it relates to your overall operations. In the following, that at the onset of your home-based business operations, you are typically able to sell more of your e-commerce-based merchandise through Amazon and eBay versus through a proprietary e-commerce site. Additionally, as it relates to e-commerce, these websites often charge minimal fees as it pertains to showcasing the products that you have for sale to the general public. As such, if you are selling products that you are either acquiring or producing on your own that you may want to check out this type of third-party sales platform in order to further your sales as time progresses. Of the utmost importance that you developed a very strong marketing plan especially to if you are engaged in e-commerce selling activities.

Relating to our discussion as it relates to financing ongoing business operations, once you have established your business then you may want to consider the possibility of taking credit cards. If you are heavily engaged in e-commerce, you can usually secure a line of credit based on your amount of money that is coming in through the credit card receivables that you receive. For instance, if you operate an e-commerce website that generates $10,000 a month in revenue then you can typically obtain a credit line equal to approximately $10,000-$20,000 depending on the specific lender. This is commonly known as merchant financing and it can be a very good way for you to manage your cash flow on a month-to-month basis as you plan on starting a home-based business. However, unlike in SBA loan that were conventional business loan, merchant financing based on credit card receivables is typically very expensive. As such, it is strongly recommended that you use this type of marketing sparingly as it does cost a significant amount of money. Typically, work in financing is approximately the same interest rate costs associated with a personal loan or credit card.

Also, you’re going to want to think about whether or not you shooting for your business or create a limited liability company to manage your business operations. If you do decide to incorporate create a limited liability company then you will have the ability to create a bank account in the company’s name, and don’t conduct business under the company’s name, and have that company almost act as a third-party as he progressed business operations. Additionally, there are many tax benefits associated with incorporating as you will be able to more effectively receive and deduct certain expenses for your home-based business. On a side note, and home-based business should ever be started for tax savings purposes. In fact, the IRS has cracked down substantially on individual entrepreneurs have created a home-based business solely with the intent to write off a substantial amount of their ongoing living expenses were ongoing business expenses. As such, you need to ensure that you are operating this as a legitimate part time business it is simply based out of your home. When you’re starting a home-based business, we strongly recommend that you have a certified public accountant or tax attorney work with you so that you can properly plan out how certain normal expenses within your home will be deducted if you were Corporation or your limited liability company. Of course, you do not necessarily need to start a corporation or limited liability company in order to larger business operations. At the onset of operations, you can decide to work as a sole proprietor which means that ultimately everything that you do as you conduct business is through you as an individual and not as appropriate. However, with this comes the risk of unlimited liability if something should happen or if you are sued. For instance, many business experts often recommend that a individual business does incorporate into the fact that it should something go wrong be litigating party can typically only go after the assets that are held by the corporation. However, if you were acting as the sole provider, any leading party can come after all of your personal assets including your home, vehicles, retirement accounts, and other issues and assets that you may have been held by your person. As such, you should make a determination as to whether or not you will be engaging in any type of activity or selling any product that ultimately could have some potential for you don’t wind up in court for one reason or another. Again, we always recommend these speakers with attorneys for all of the advice as it pertains to these matters.

This business can be a fun activity and certainly can provide you with a very good source of secondary income for the ability to eventually turn your home-based business into a full-time job. Again, in summation, you need to always ensure that you are starting a home-based business for the right reasons. The wrong reasons, as we discussed throughout this article, include simply starting a home-based business with the intent of paid tax deductions. The best reasons for starting a home-based business are typically because you want to have a business that provides you with ancillary income that this is your passion and that you want to create a full-time business out of it in the future.

The other thing that we always discuss, and recommend, you keep a very reasonable and levelheaded and reasonable as he progressed through starting your home-based business.

The advantages of starting a home based business outweigh the time and small expense involved in setting up a viable business. For the long term, the overhead costs for starting a business in your home are very low. The government provides several tax incentives for individuals who have businesses set up in their home. There are some strict rules and regulations that must be met to qualify for the home-based business deduction but once confirmed, the tax refunds for having a home based business are very lucrative.

In addition to the tax advantages, home based business owners have no daily transportation expenses. home based business owner has unlimited flexibility in balancing work and family commitments. Using technology for communication and business processes makes working from home a sensible and practical solution to the high price of gasoline, commuting time and costs of buying new clothes.

Home-based businesses play a crucial role in the free enterprise system. These entrepreneurs contribute to the overall economy as well as the financial viability of their families. The ultimate dream of a home based business is to provide financial independence for the owner, their family and the community at large..

Some of the most widely recognized software retailers and cosmetic companies had their beginning in a garage. Companies like Apple Computer, Hewlett Packard, Dell, Microsoft, Lotus and even the cosmetic giant, Mary Kay, were initially started as home based business enterprises.

But, like any other type of business, a home-based business requires initial preparation, start-up capital, registration and ongoing marketing. Home based business are traditionally set up as a sole proprietorship. The home based business owner has to be an expert in all phases of the business. At some time in the business start up process, the home based business owner must know the details of the operational, strategic, legal, financial and marketing concerns.

The following checklist covers the essential points to help you stay focused so that you can set up your own home-based business.

Plan to Succeed

Every business needs to create a comprehensive business plan. The business plan will focus your efforts from selecting a product to sell all the way to the actual marketing of the product. This plan will cause ideas to generate and perhaps new methods of distribution for your business.

The basic business plan contains a, executive summary, mission statement, marketing plans and profits that you want to achieve. The business plan is the blueprint that will guide you to your desired results. It is of utmost importance to prepare a draft of your business plan. The business plan will keep you on focused on your goals. If you intend to seek any type of funding for your business, it is imperative that a business plan is part of the start-up process.

Selecting the Business Structure

The selection of your long term goals for your business will determine which structure you chose for your business. The choices include:

o Sole Proprietorship
o Partnership
o Corporation

There are several different types of Corporation structures that you can choose. There are specific tax implications for each of the choices listed. Deciding on the business structure for your home based business enterprise is perhaps one of the most critical decisions you will make.

You can search online to find out the specific requirements for each of the business structures listed. Your decision will have far-reaching consequences and will depend on important factors like capital, ability to do business in specific locations and the type of your business you are starting.

To register or not to register?

It is important for all legitimate business to register their business name. For tax and other proprietary purposes you should secure all necessary business licenses. Registering your business protects the name of your business. It is also important to become aware of the compliance requirements in your area. Local zoning regulations should be acquired to assure you that the business does not contravene local zoning laws.

Insurance for Your Business?

It is just smart to purchase insurance for your new business if you need to acquire financing. Business insurance is a prerequisite of lending institutions in case you plan to borrow money for your startup operations For online businesses that do not sell physical products, having insurance is a choice.

Purchase Equipments

Remember to keep all of your receipts when you purchase any office equipments or supplies. Your new computer, fax, printer, cell phone stationary supplies, and business cards are necessary business tools and are all tax deductible for your new business.

Time Management

Home-based entrepreneurs also require better time management skills than a corporate employee. Home based business owners must learn how to leverage their time and money. It is easy to get off track when your office is located in your garage, a den or the basement. Decide how much time you will devote to your business each day and stick to your time schedule.

Automate as much of your business as possible so that you are always available to your customers. Schedule each phase of your business day and set up systems that will automatically reply to inquiries. Automation of your menial tasks is a critical element in your overall time management strategy.

Web Site

Businesses are longer restricted to brick and mortar locations. There are no limits to the number of customers that home based business owners can acquire. The home based business owner can no longer limit themselves to doing business in their local community. The Internet allows global business interaction from anywhere in the world. Having one website may not be sufficient to accomplish the level of success that a home based business owner requires.

Home-based businesses compensate for their lack of a physical presence with a virtual presence in the World Wide Web. This presence may take the shape of several websites on several domains.

Organization & Automation

To conduct business in a professional and efficient way, it is important to organize everyday tasks into simple automated processes. Your home office should include everything you need to complete a transaction. It is easier to stay on top of daily tasks when the work-space is well organized. It is so much easier to complete the daily grunt work when these menial tasks are automated.

Inventory and Supplies

For home based business owners who sell physical products, it is important that these products are kept in a specified location. If you use your garage to keep stock you need to know the exact dimensions of your garage that is designated for this purpose. The best way to handle stock is to have the company send and maintain the bulk of your inventory. This eliminates a time lag for your customers. If you sell digital products, this process is handled automatically.

Open the Door and Let Business Begin

You are now ready to open the virtual doors of your home based business to the global community. You have completed all the steps to insure that your business will be successful. You have a product, a website that allows you into the global marketplace.

Many home based business owners fail to realize when they start out at first that they need to have the right attitude to building their own home based business. They spend time amassing the right online tools and start building their website and when they are done, they sit there and gripe to their uplines about why out of the few people that signed up with them only one upgraded. It is submitted that what these people lack is the right mental attitude to owning their own home based business. This article therefore highlights three mental characteristics of successful home based business owners.

1. Tenacity

Some people have very low appetites for risk and as a result love to hear a failure story and always rub their hands with glee when they find another business venture gone awry. But what did the business owner that failed time and time again have to say to such naysayers? He just dug his heels in and spent his energy and efforts on his next business project. Once you are satisfied that what you are doing can make you money, focus all your energies on that one thing and do not give up on your home based business. Remember not everyone can have this tenacity and success in home based business ventures are based on persistence.

Ray Croc the founder of Macdonalds started out with a mere burger and buns stand at one corner of the street. The entry barrier of that business venture is very low and as Warren Buffet says, this means that many people can compete with you and business competition is tough. Did he throw in the towel at that time merely because he felt that doing business with burgers was tough? No he persisted and revamped the entire burger stand concept and came out with his own business model that was revolutionary. Only persisting and innovating at something that you strongly believe in can results start coming in your home based business.

2. Reasonable expectations

Any home based business owner will tell you that it boils down to reasonable expectations. You get signups and some of them will upgrade. You must understand this. Some people do understand delayed gratification and then ironically they stop promoting their home based business and start managing their downlines. A home based business is a direct sales business you must remember that so you should always have reasonable expectations that the number of signups and sales is proportionate to the amount of internet promotion that you do.

John was a internet home based business owner but was dismayed at his dismal results with his business. Mary on the other hand did not worry about her results and spent her time on weekends writing articles and submitting them, tweaking her pay per click costs and finding some time to do some search engine optimization on her home based business website. At the end of three months, while both had upgraded in their respective internet home based business, John had nothing to show for it but gripe about how the system did not work. Mary on the other hand was getting signups for her internet home based business daily and spent time qualifying them and working with them. Needless to say Mary made more money online with the internet home based business.

3. Take responsibility for your business

Some people fail to realized that they are their own marketing department, customer service and everything rolled into one when they start their own home based business. The significance of this is that they gripe about the payment plans, the products and focus their energies on everything but the promotion of their business. On the other hand if you look at those people who are actively promoting their home based business ideas, they are focused on promoting their website business and generating more sales. The trick is to take full responsibility of your home based business and focus on things that directly affect the number of sales of your business.

John was looking at his internet home based business and saw five things he could do with his business. But he had to make a decision since there are only so many hours in a day for him to spend. He looked through his cash flow statement for the month and realized that one of the five things he could do directly impacted the sales of his home based business. He focused on that and spent the most amount of time on it and internet home business success was his.

In conclusion, we have covered three elements that are present in any successful home based business owner. Take massive action today by writing down a plan of action and write clearly what you hope to achieve out of this and your internet home based business sales will start increasing slow but surely. Remember any business be it a home based business or a traditional business takes time. Work hard at the sales aspect of it and you will find that your income will rise.

Sure, sure, sure-virtually everyone calls their home-based-business ‘PERFECT’–right? So with zillions of opportunities offered everyday–which one is telling the truth and which one is the right one for you? Listed below are 13 of the most comprehensive tips and tools that will significantly benefit you in your search to find the ‘perfect’ home-based business–wherein you can make the most educated decision of your life and future.

1) The ‘perfect’ home-based business should have been in business a minimum of 5 years and should have little or no debt.

2) The ‘perfect’ home-based business would sell to the world rather than a single neighborhood or even a single city or state.

(3) The ‘perfect’ home-based business would offer a product that people either need or desire–almost regardless of price.

(4) The ‘perfect’ home-based business would sell a product which cannot be easily substituted or copied. This means that the product is an original or at least it is something that can’t be copyrighted or patented.

(5) The ‘perfect’ home-based business has minimal labor requirements (the fewer personnel–the better). Today’s example of this is the much-talked about “virtual corporation.” The virtual corporation may consist of an office with three executives, where literally all manufacturing and services are farmed out to other companies. In the ‘perfect’ home-based business-you’re the boss.

(6) The ‘perfect’ home-based business enjoys low overhead. It does not need an expensive location–it does not need large amounts of electricity, advertising, legal advice, high-priced employees, large inventory, etc. In the ‘perfect’ business there is no overhead as everything is done from your home.

(7) The ‘perfect’ home-based business does not require big cash outlays or major investments in equipment. In other words, it does not tie up your capital. One of the major reasons for new-business failure is under-capitalization.

(8) The ‘perfect’ home-based business enjoys cash billings. In other words–it does not tie up your capital with lengthy or complex credit terms. In this ‘perfect’ home-based business, the company does your billing for you by accepting credit cards or debiting checking accounts.

(9) The ‘perfect’ home-based business is relatively free of all kinds of government and industry regulations and structures. If you now own your own business, you most definitely know what I mean with this one.

(10) The ‘perfect’ home-based business is portable or easily moveable. This means that you can take your business (and yourself) anywhere you want-virtually anywhere in the world.

(11) Here’s a crucial one that’s often overlooked. The ‘perfect’ home-based business satisfies your intellectual and often emotional needs. There is nothing like being fascinated and incredibility satisfied with what you’re doing. When that happens–you’re not working–you’re having fun.

(12) The ‘perfect’ home-based business leaves you with free time. In other words, it doesn’t require your labor and attention 12, 16 or 18 hours a day. In this business you can work as few or as many hours as you choose. You decide when you want to work and how many hours you want to invest in your future.

(13) Super-important: The ‘perfect’ home-based business is one in which your income is not limited by your personal output. (Lawyers and doctors have this problem). In the ‘perfect’ home-based business you can sell 10,000 customers as easily as you sell to one. (Publishing is an example). And, with the ‘perfect’ home-based business, there is no ceiling on how much you can earn.

What makes this ‘perfect’ home-based business so unique is this: It’s like a 3-legged stool wherein you need all three legs to keep you from falling over.

1) There’s never any inventory to maintain as the company houses the product-ships your customer’s order right to their door-and bills the customer for you.

2) The business provides you with a tried-and-true product that everyone wants and needs-and, what is most important of all is that it’s renewable-meaning that your customers will virtually order this product for themselves and their families for the rest of their lives.

3) And the last leg of the stool is YOU. You are the only variable in this ‘perfect’ home-based business. Unlike a conventional business wherein it doesn’t matter how hard you work-you are still paid the same rate of pay. In this–your ‘perfect’ business–YOU are paid according to your own efforts.

That’s it. Using the list will help you cut through a lot of nonsense and hypocrisy and wishes and dreams regarding what you are looking for in life and in your work. How many people do you know that work at the ‘perfect’ home-based business? As for YOU–it’s definitely helpful knowing what you’re looking for and dealing with. As a friend once put it, “I can’t lay an egg and I can’t cook, but I know what a great omelet looks like and tastes like.”

We found this PERFECT business 17 years ago and have never looked back. Well–not unless it was another entrepreneur trying to recruit us into their home-based business. In all these years–no one has yet to come close to this 40+ year-old–pro-environmental–debt-free–7 BILLION dollar business that offers an incredible ‘benefit package’ that rivals most of the Fortune 500 Companies.

If you have read this article this far–you undoubtedly have been looking at other home-based businesses. If you are really serious about starting the PERFECT home-based business then do your homework first. Research is everything. Also–and prime to this business–your start up fee is only $50. As you are evaluating our 13 prerequisites to a guaranteed successful business–do consider that this small fee will align you with this 7 billion dollar–distributor friendly business that doesn’t sell–but shares information. That’s right! You aren’t selling–but only sharing information to the potential customer who can then make their own educated decision.

RECAP

• You don’t need to spend a lot of money.
• You don’t have fixed overhead and labor costs.
• You don’t face any financial risk.
• Build a small profitable business using name-brand products and a tried and proven system.
• Build a customer base and develop a distributor network by sharing the system with others.
• Receive a percentage of the sales volume of the other businesses.
• Receive effective support for you, your customers and your team.

It’s really that simple!

Having said that–we hope that we have offered you more than enough information to make an educated decision in starting what we have come to know as the most Perfect Home-Based Business in the World.

DO YOUR OWN HOMEWORK! Just because we shared some hard-to-believe information-don’t take our word for it–do your own research. For countless other valuable information–please contact the website below.

(A Husband’s Viewpoint) – 25 years ago Donna Madora Mitchell was in and out of a wheel-chair for nearly 10 years with a disease with no name and sleeping scarcely an hour a night. In chronic pain–and no help from doctors–Donna read an ocean of books looking for a cure. Woefully we were exceedingly financially embarrassed–but Donna never lost faith. Although never finding a cure, her time was not wasted. In these old books, journals, pharmacopeias and more, Donna discovered a wealth of information about our foremothers and forefathers. Incredibly – knowing nothing about how to start a business – with an $8 investment in a pound of cinnamon sticks – from scratch – she founded Lavender Lane – a world-wide mail-order business. Physically, Donna could do little except use her creative imagination and ability to write. Unbelievably – with willing helpers – 3 years later – Donna broke a million dollars in sales. As to her illness – advertisement after countless advertisement crossed her desk promising cures for what was eventually diagnosed as Fibromyalgia. Donna spent thousands of dollars – but to no avail. 10 years later she was introduced to ‘a new concept in nutrition’ which turned out to be a compendium of the most nutritional raw fruits and vegetable powders in the world in a capsule. Skeptical as we were – out of desperation – Donna gave in. Not wishing to share a testimony that was Donna’s alone – within 3 months she was learning to walk again. Having said that, Donna went on to travel and teach and share everything she knew about aromatherapy and nutrition. Her greatest love however–is creating the written-word. Her story is unbelievable – but she isn’t.

There’s a lot that’s changed recently with online marketing. Most people now go straight to Google to search for something they want. The phone book is out and Google, or search traffic is in. If you are a small business owner you can benefit from the internet as a source of business. What’s even better is that you can tap into this resource for free if you have a physical business.

Google Places

Google Places lets you advertise your local business for free in the search results. When someone searches for a local business in your area, your results will come up first for many searches. This is a simple cost effective strategy you should definitely be employing in your business. With Google Places, you list your local business and Google will send you a confirmation postcard with a Google verification code on it. Once you have verified your listing with this code, Google knows you actually reside at this address, or run a business from it.

Google Places works wonders for small business owners who work from a certain location. If you’re not on it you are definitely missing out on business. Plus, your competitors could be using it which means they could be taking your potential customers. To use Google Places just do a quick search for it on Google and it will take you through the setting up process.

Bing Places

Bing also offer this same listing on their own search engine. It’s just like Google Places so not much to add here really. Simply fill out your details on the online platform and verify your listing when you receive a code in the post. When you create your listing you will have to list your business within a certain category, or two. Look through the existing categories and find the one or ones which are the best fit for your business. This is the same as Google Places. By listing in more than one category, if the platform allows, you can benefit from a number of searches within your local area.

Other Listings For Free

Yell and Yahoo also offer free listings for businesses too. Also do a ‘Google search’ for local directories and free listings and you will find a range of sites which offer free business listings in your area. In some cases even the extra links back to your website can make a difference to your ranking, even if the link itself doesn’t bring you more business.

Blogging

You may well not have the time or inclination to start a blog. However, in some business areas blogging is a good way to increase your business reach online in a fairly cost effective way. Depending on your business, and whether it opens itself to a blog, you can get some good results by targeting some keywords in your business niche, or simply writing compelling content and sharing on social media.

Keyword Research

You can use Google’s free keyword planner to search for terms which are already getting hits on the search engine. By finding long tail keywords in your business niche and writing good content for them, you stand more chance of being listed on the search engine. If you can find untapped keywords which bring in customers to your business, you can write articles which will bring in customers for free for years to come for free.

Paid Advertising

After you have exhausted the free methods of advertising, you can start looking at paid advertising methods. Many business owners try and fail with paid advertising. This is why it is worth learning properly the do’s and don’ts of paid advertising.
Pay per click advertising can make a massive impact on your business. But you should also be very careful. Make sure you start out with a small budget and get properly educated on how to create adverts and which keywords to choose. In particular look at the different types of keyword matches. Get this wrong and you can easily burn through your budget and list your advert for entirely the wrong audience.
However, paid advertising is remarkably scalable. Once you have a campaign which works you can easily increase your budget and you are in a position to pay for new customers.

Return On Investment

When I started with pay per click I didn’t understand return on investment. I ‘dipped my toe in’ and dabbled very tentatively. If I didn’t see an immediate profit, I stopped altogether. This is a mistake. Initially there is a lot of testing and measuring to do with paid advertising. After a while you get an advert which successfully brings you customers. However, knowing the return on investment from successful doing this is a game changer. If your customer goes on to purchase again and again, how much are they worth to your business over a year, or 10 years? Knowing this is a huge key to having the confidence to put money into an advertising campaign. Even if you lose money in the short term, your new customers will bring you new business over the long term. Learn the average spend from each customer over a year and then 10 years. Then decide what each customer is worth in terms of advertising. Does this change your view on what you can afford?

Paid Advertising Methods

There are various paid advertising methods available to use for small businesses online. Start with one method and become good at that before moving on to the next. Facebook advertising lets you target potential customers down to their interests, location and other variables. Pay per click advertising lets you target intent driven adverts. With pay per click you start with the keyword your visitor is looking for online. Once you have tested and measured an advertising method and you have a profitable model, you can leave it running and scale it easily. Then move on to the next one.

Even if you only use a couple of the methods suggested in this article, you can dramatically improve your business with only a small amount of effort. Once you have learned all these methods, you will know how to scale up your business and increase your profits. You can then invest in other forms of advertising, testing and measuring as you go. Whether these are on the internet or offline, using the same strategy (which lets you measure the response of a customer) means you can gradually improve all your advertising methods over the long term, increase profits and grow your business.