| So, you want to start a home based business? | | | | the products you sell. They are shipped |
| According to the U.S. census, there are over | | | | directly from the fulfillment center to your |
| 700,000 businesses in the United States with | | | | customer. The advantage is obvious. Your |
| no employees, so you're definitely not alone. | | | | inventory carrying costs are reduced or |
| The best part is that about 20,000 of those | | | | eliminated completely. You need not have a |
| businesses had gross receipts of over | | | | staff to package and ship your inventory |
| $1,000,000! That is over a million dollars | | | | either. The disadvantage to using a drop |
| for a single person, working out of their | | | | shipper is that you usually pay a little bit |
| home. Obviously not every person starting a | | | | more, 3% - 5% on average, than you would if |
| business is going to make anywhere near that | | | | you used a traditional wholesaler. Many |
| kind of money. You need to have several | | | | traditional wholesalers have fulfillment |
| things to even have a prayer of getting a | | | | departments specifically for e-commerce |
| solid, profitable business going. The type of | | | | businesses. You'll have no minimum orders, |
| home based business you are looking for is | | | | but possibly a small set up fee, usually less |
| one that can pay you a very handsome profit, | | | | than $100.00. Beware of the many, many fake |
| year after year, and allow you to take enough | | | | wholesalers on the Internet. A real |
| time off to enjoy the fruits of your | | | | wholesaler will typically be used by many |
| labor.So, how do you get such a business | | | | online and bricks n' mortar businesses. They |
| started? First, you need a plan, a real, | | | | will buy directly from the manufacturer or |
| solid business plan. The plan should | | | | importer of the products. They will not |
| encompass everything pertaining to your | | | | charge you a membership fee or a larger fee |
| business;- What type(s) of products or | | | | to get better pricing. They make their money |
| services you are selling- Who your target | | | | from selling you products, not from marketing |
| market is- How you will market your chosen | | | | you a price list.You could sell information |
| products and/or services- A complete | | | | products. There are four ways to obtain |
| financial plan including: your sources of | | | | information products for your |
| financing, expected expenses, initial revenue | | | | business:- Create the products |
| projections (realistic ones)- What resources | | | | yourself- Contract a third party to create |
| you need to begin your business such as: | | | | them for you- Purchase resale rights to an |
| office equipment, finances, vendors, a | | | | existing products- Sell other's products as |
| website, etc.- Where you expect to be in one | | | | an affiliateInformation products are |
| year and three yearsA business plan is | | | | delivered as hard copies of books or other |
| essential for a number of reasons. First, it | | | | recorded media such as tapes or CD ROMs, or |
| causes you to think through your business | | | | they are downloaded directly to your |
| carefully. You can make sure you have covered | | | | customer's computer. The download method |
| all your bases and that no details have been | | | | works very well because you are paid |
| missed. Next, it will be a necessity in the | | | | instantly when the product is downloaded if |
| event you need to seek financing. Investors | | | | you are selling your own products. If you |
| will want to see a well thought out business | | | | are selling as an affiliate, you'll typically |
| plan.The first decision you need to make when | | | | be paid bi-weekly or monthly. In either case, |
| starting your home based business is: what | | | | you need carry no inventory. You can sell the |
| will you be selling? There are many options. | | | | same product over and over again, creating a |
| Do you have much needed expertise in a | | | | nice revenue stream. Many successful home |
| certain industry? If so, you could start a | | | | based businesses use this approach.Another |
| lucrative consulting business. Consultants in | | | | very popular home based business is selling |
| certain industries make $100 - $200/hr. Some | | | | other businesses products as an affiliate. |
| are paid as a percentage of the money they | | | | This approach has many advantages. You carry |
| save the client. That can be extremely | | | | no inventory. You are not selling the |
| profitable. I've personally seen consultants | | | | products yourself, but being paid a |
| save businesses over a million dollars a | | | | commission for sales to customers referred by |
| month! If you had a fee structure such that | | | | you. You don't have to deal with many of the |
| you only received 5% of the savings, you | | | | headaches and expenses of traditional |
| would get a $600,000 annual paycheck! That is | | | | businesses; returns, customer service and |
| an abnormal, but by no means an isolated | | | | inventory. There are many affiliates making |
| example.You could start an online store. It | | | | substantial profits every month using |
| is much easier to begin an online store than | | | | affiliate marketing. The disadvantage is that |
| a bricks n' mortar operation, however you | | | | due to low barriers to entry and low risk, |
| still have a lot of work to do. You'll need | | | | there is substantial competition. You have to |
| to, as with every business, evaluate your | | | | differentiate your business to be |
| target market. Who are you selling to? What | | | | successful.There are many ways you can join |
| types of products will you be selling to your | | | | the exciting and profitable world of home |
| target market? You have distribution and | | | | based business. You'll free yourself from the |
| fulfillment decisions to make as well. Will | | | | problems of the traditional job market and |
| you be using a drop shipper, or will you be | | | | enjoy a whole new life. Make the leap!Steve |
| stocking products yourself?Most small | | | | writes about a multitude of business and |
| internet businesses, except for those that | | | | finance topics. He has been a principal in |
| are selling products they produce or source | | | | several businesses both online and bricks n' |
| locally, use drop shippers. The advantage to | | | | mortar, including one that grossed over $1.5 |
| a drop shipper is you never touch or stock | | | | million a year. |