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