Prior to Signing Up Into a Home Based Business, Find Out What it Really Takes to Do One

Okay, so you want to start a home based business and you’re doing it for the reasons below (not limited to the ones below):

  • Tired of the 9-to-6 rat race and the additional time of commuting associated with it.
  • You don’t want to leave the house to work a second job
  • Concerned about getting laid off, although you think that you have a stable corporate or government job.
  • Forced not to go to work to look after your small children because they need to be looked after
  • Need the extra money
  • Have worked another business, but failed because you and your partners didn’t work out, like what happened to me.
  • Fell for the hype, like myself, that you’re going to make a ton of money but nothing happened, so you’re looking to give it another shot because this is what you wanted to do.
  • Believed in the the product sells itself, like I did, when in the first place, it didn’t happen.  So you wanted to find a business that has a product that solves other people’s problems.

And I’m sure you have many reasons to start a home business, but this time, you’re more skeptical because most of these people promoting the opportunity are driven by hype.  As a result, many of them fell for it and lost money.

I’m sure that some of you were pushed into this type of business by someone else and when it didn’t work, it did you more harm.  It’s really awful to see that 95 percent of those who started a home business didn’t survive and they wind up quitting.  I know someone who was in a network marketing business for two years and didn’t even make a promotion.  That’s because people who bought into the product or opportunity canceled their subscription or quit the business.

Why is that?  Because whoever brought them into the business did not make their life better. 

As Tim Sales said, you’re not in the business to make your life better.  You’re in the business to make other people’s lives better.  You can work hard in your business and you still won’t make a dime.  That’s because you didn’t have a solution to their problems.  Try and sell the product or the opportunity because it’s HOT compared to marketing them because you will make their life better are two different things.  If I was being prospected in the opportunity or the product, I would go with the latter.

Many people say that business is a numbers game and it boils down to whether your bank account stays further in the black.  Unfortunately, it doesn’t work that way.  Anytime you start your own business whether it’s from home or at a mall strip, you better remember that your primary mission is to make other people’s lives better before you think about reeling in more sales.

When you’re in business, your primary goal is to help make other people’s life better before you think about reeling in more sales.

Another thing I want to mention is those who brought you into the business like one that has multi-level compensation plans are known as an upline.  These people usually mentor the newbie on how the business is done.  Not all uplines are bad, but there are some who will tell you to follow some system that would be duplicatable and I’ve seen it on almost all MLM companies.  Although i have nothing against duplication because they’ve been proven already in several businesses, such as McDonalds, WalMart, Hollywood Video, several supermarkets and drug stores.  Note that these companies are well established and have the big customer base.  However, you’re just getting started in business and you’ll have to come up with a way to market it if you’re going to compete with the big boys.

Dr. Charles King, professor of marketing at the University of Illinois at Chicago and network marketing expert, said that if you have a unique product that’s consumable, they come to you to get it.  If you don’t, you better have a retention strategy to keep your customers.

Even with what Dr. King said, he also mentioned that you have to have an expanding market.  If you don’t, there is obviously no demand for the product.  Try selling a product/service that’s not in demand or doesn’t work and you’ll be one frustrated distributor, even after your upline insisted that they do work.  As a result, frustrated distributors will jump ship because they had seen enough.

Ann Sieg has a way to explain this in “The 7 Great Lies Of Network Marketing” book in regards to these uplines.

Did your upline ever told you that your first goal is to make that first pin-level promotion?  How about telling you to purchase leads, work a duplicatable system, or go to a company’s annual convention?  It doesn’t surprise me that I hear this all the time, even from those who are already up in the company leadership. 

Well I got news for you.  It doesn’t always work that way.  Although a duplicatable system works with McDonald’s and WalMart, that is not necessarily true for a small business owner working with a network marketing company.  Why?  Because McDonald’s and WalMart are already established, making billions of dollars in income and they have the money to take down a small business owner.

Ever asked people for a favor to make a purchase so that you can make that first level promotion?  I know several people who were guilty of doing that and I was a member of that party as well.  Don’t get me wrong.  Not all uplines are like that.  I’m talking about the ones who have numbers in their agenda.  That makes them place your mindset on numbers instead of helping make people’s lives better, which is what you’re in business for in the first place. 

Let me share part of what Ann Sieg had to say about her e-book, “The 7 Great Lies Of Network Marketing”:

  1. Do they tell you that everyone is a prospect?  In one of the first MLM companies I joined, I was asked to bring in everybody and their cousin to some conference call.  One of my other uplines told me that anyone who has “widgets” is a prospect.  That didn’t go well for me.  Your best bet is to find an audience who’s in need of the product/service you’re offering or who needs a solution to their problems, such as achy knees, or looking for a compatible date.
  2. Do they tell you that you’re not selling.  Instead you’re sharing?  Anytime you’re starting a home business, you’re selling a product or service in  exchange for money or any negotiable instrument that is acceptable to both parties.  Don’t fall into that “you’re not in sales” trap because as long as you’re receiving money for your product/service, you’re in sales, period!
  3. I was told that anyone can do this business.  Really? You wait till they find out how much they have to pay every month to stay in business.  Those who have a job mindset want to be paid immediately.  If you have that type of mindset, you’re not going to want to be working for me because I’ll pay you minimum wage (borrowed from Rich Dad, Poor Dad) until you make that other person’s life better and if you don’t, you’ll be fired.  I for one, will not bring anyone on my team who doesn’t qualify to be part of the business.  If you have the mentality of making other people’s life better, you have a pretty good chance in starting your own business.  Otherwise, you’re better off getting a job.  I must warn you that when you work a job, you still must make your employer’s life better or you’ll be let go either through layoffs or firing.
  4. Your business will be built for you by your upline.  When Sam Walton father-in-law not lend him the money to start his first business, he would have to find other ways to build his business.  The point is, he built that business from the ground up and you know the rest of the story.  I heard about placing people underneath you, but if you’re going to grow your business, you must build a relationship between you and the person you enroll.  You must help make that other person’s life better and I’m going to repeat that over and over and over again.  You should always train people in your group to learn how to train their people.  I was in a event in Las Vegas for my company and one of the leaders in the company said that you should always recruit because every recruit you bring in is an additional stream of income.  Don’t ever expect anyone to build your business for you because you’re in the business of making other people’s lives better.  Network marketing is all about building relationships between you and the person you brought in.  If you keep growing your front line,
  5. How about your uplines telling you that the product sells itself?  Stay out of that mentality because you must make that other person’s life better.  Products don’t necessarily sell themselves.  Solutions to people’s problems do.
  6. You just don’t believe that this business or the associated products will work for you.  No matter how good your product or service is or your opportunity, the window of opportunity for your prospects may not be open.  If you try to pry their window open by putting the pressure on them to buy into it, you’ll wind up losing the relationship with your prospect.  What you should do instead is focus on making their life better.  Even after you showed your prospect the information on your products/services/opportunity and the prospect says no, you must accept their decision.  A good way to salvage that relationship is to refer them to someone else the product/services/opportunity to someone else whom they’re suitable to work with.  Remember, you must at least make an all out effort to salvage the relationship and you do that by making their life better, regardless of their decision.
  7. Your opportunity has a proven system – there’s not such thing as a proven system.  McDonald’s and WalMart has one of the most robust proven systems, but if what they have to offer doesn’t meet their needs, wants, or don’t wants that make their life better, they’re not going to buy into it.  Or the prospects windows of opportunity to buying is not open for them and no matter how great your system works, there’s still no guarantee that they’re going to buy because it won’t solve the problem that they have.  At one time, we wrote a paper for a systems analysis and design course.  The content is good, but we learned that what we wrote is too technical for the reader, so we got a lower grade.  No one cares how state of the art your solution will be, but if it doesn’t address the issue that concerns the audience, they won’t buy into the system.

My suggestion is, before you decide to do any business, whether it’s an online business from home or a networking business, make sure you educate yourself on what you’re getting into.  If you don’t, you’re up for a rude awakening when you learned that you lost money in your business because you didn’t observe the 7 lies that occurs in this type of business.

Be sure you download the free e-book “The 7 Greatest Lies Of Network Marketing” below and start educating yourself.  Please visit the website below and enter your first, last name, and your email and when you confirm your subscription, a link to download the free eBook will be on your confirmation email. 

Do not neglect to do this or you’ll simply be another statistic.

How Your Small Business Is Part of a Successful Retirement Plan

According to The Millionaire Next Door, “self-employed business owners are four times more likely to be millionaires than those who work for others” if their business is profitable and they’re frugal. Of millionaires who own businesses, 21% of their wealth is in their business. For non-millionaires business owners, I’d bet it’s a much larger percentage. With so much wealth tied up in your business, making sure that wealth is available when you retire, is part of a successful retirement. Because retirement means you aren’t working, you’ll either have to sell your business or get it to the point where it works without you. For most business owners, retirement means selling. Selling a business is best anticipated over several years. During this time you’ll be able to arrange the business and operations to maximize the return you get from your business.

Like any good marketer, to maximize return you have to know the needs of your buyer. There are two types of business buyers – investment and strategic. Investment buyers purchase based on the money generated by the business. For a strategic buyer, though, the business has to have something more than the money – customer base, special technology or capabilities, etc. For example, if a printing company wanted to grow into a new market, it could try selling directly to that market. But sales would be limited by experience and knowledge of the players and customer needs. If, instead, it bought another printer already serving the market, it would acquire a customer base, experienced sales force and reputation. The purchased business would be worth a lot to this buyer because, in addition to the money from the existing operations, it could grow its current business and cut costs from the purchased business. This buyer would be a strategic buyer.

Most small businesses are bought by investment buyers. Investment buyers look primarily at the money coming from the business to determine value. Cash flow is king for these buyers. Unlike public companies, small business owners want to reduce net income as low as possible to reduce taxes. They’ll typically increase discretionary business expenses. For example, the owner might take extra buying or marketing trips each year, or purchase a top tier insurance plan. Discretionary expenses and expenses that don’t require cash (e.g., depreciation) are added to the net profit to show the owner benefit over a three to five year period. Then, owner benefit is multiplied by between ½ and 5 (the most common being about 2.4) to arrive at the business value. The number used depends on a number of factors, including time in business, consistency of cash flow, competition and business location. To get the maximum price, you have to plan in advance. First, compete only on customer service and serve customers in a well defined niche. Your customers should be people you like, care about and who return again and again.

This will increase profitability, goodwill and consistency of cash flow Next, watch your recast profitability constantly. Analyze every decision based on profitability. If you invest into the business, make sure you know when you’ll receive cash flow from that investment. Be sure profit will grow. Keep the business clean – physically and financially. Buyers equate a clean business with a well run business, and vice-versa. Systematize the business. If the business requires you to run it, it will be much less valuable to all buyers. Finally, price the business reasonably. We don’t have a negotiation culture in the U.S. If something is seen as overpriced, most people won’t make offers. So, if your business is overpriced, you won’t receive many offers. Then, after you’ve been sitting without offers, you’ll get a below market offer which you’ll be more inclined to take. Planning now can increase the value of your business for your retirement plan.

4 Things About Choosing Internet Business vs Traditional Business As a Vehicle For Your Success!

1. Taking Charge of Your Financial Destiny, But How…

Many people today know that the only way out of this economic crisis for the individual is through taking financial charge of their life. You may be tired of being a pawn of everyone else but don’t kill your passion by adding an anchor to it like having your joy be your security or enslaving your passion to make the mortgage and the bills day in day out. Running a traditional business is a skill and passion all to itself and unless balancing accounts, inspiring your staff, planning your marketing and your monthly budgets and then making sure it all actually happens is your passion and your skill set, you are just not ready to go into a traditional business. Internet businesses could be another option for you.

Owning or renting a building, paying rates and employees etc like in a traditional business is really unnecessary burden to your dreams and it involves a massive investment of time and money in a whole bunch of areas that aren’t necessarily your dreams or skills. Nearly anything can now be sold on the internet in written, video or audio form. You may be great a baking cakes, don’t open a bakery; post your recipes in any format and the entire world can become your customer and you only do the job once! This will leave the rest of your day free to bake rather than having to bake for every single customer. You could be an awesome artist or builder so ask yourself ” How could I transfer what I do into written, audio or video form that others may benefit from and package it for the internet money”.

No rent, no wages, no insurance, no employees. Labor only once and what’s the risk? No one buys your product…a) This could happen after you’ve invested tens of thousands in machinery and plant and wages anyway and b) In a world market do you think you couldn’t find 100 or 1000 people who share your interest or could use your knowledge and c) there are many proven strategies for making massive internet affiliates and businesses work faster and easier with less cost and time than traditional business. More millionaires are made everyday on line while more than 80% fail just in their first year. So what I am suggesting is the skills and risks associated with traditional business versus online business is something to consider carefully. Either option is no magic bullet to your passions and skills into profit it does take some time commitment and money, no one will do it for you but if you are willing to go into traditional business then internet money is a breeze.

2. Lifestyle of Business

We go into business with a view that it will free us from “working for the man” or from the “golden handcuff” but which style of business is most conducive to a free lifestyle? Owning your own traditional business can certainly be like running a day care centre, but for adults instead of kids and you have to pay them. Traditional business owners especially in the early stages generally work harder longer hours than anyone else on their team, not quite the Richard Branson cruising around in Learjet’s life just yet. There is no more, if not less security in running your own traditional business than in a job. 80% of new businesses don’t survive the first year and the statistics get harsher each year thereafter.

When it comes to knock off time your brain quite often doesn’t know the meaning of the word relax. You’ll find this out at midnight when you’re still trying to work out your next move and how to pay the rent and the secretary. It is harder to get loans and credit in your own business than in it is for someone who works in a grocery store with regular far less hours than yours! Owning your own traditional business is no guarantee of a free lifestyle. Preparation, business experience and planning are the key, not just your passion and skill. There is a distinction to be made here, it’s all in the type of business you own or in the team that helps you and the proven plans you follow. The World Internet Summit could offer some great alternatives to follow. Owning your own business is certainly the only way to take control of your life and live your passions and enjoy real security, just be aware that turning your passion into a job isn’t your only solution. Owning and running and earning internet money is a very different picture! You already have a computer and can use a search engine and click a mouse.

You are already spending time on the net, so you have the time and skill you need to do this. If you’ve ever convinced someone to go to a party with you or someone has watched a movie on your recommendation, you have all the sales skills/ business skills you need. Right now you have all you need to make a huge online business, do you have everything you need right now to run a traditional business? Internet can be built with spare time while still in a regular job for security, this doesn’t happen with traditional business. Right here is the biggest difference the huge gap in the time and money and skill sets and resources between opening a traditional business and that you could start an internet business today. And when your internet business is up and running it will take even less time than starting and it can be run and maintained anytime of the day for as little or long as you like and it can be run from anywhere in the world that you can take a laptop. Now that’s what I consider control and freedom of lifestyle. Some choice….

3. Following Maps for Success

Following existing plans is simply a must for business success. So which plans are easier to find and follow traditional or internet? Finding a shop, hiring an accountant, putting up some signs and getting your cousin to help with some flyers and then working your tail off or 40 years is certainly a Plan, but is it a proven plan that will give you your outcomes of freedom and security to follow your dreams as well? Is it the only choice? Spending your spare time of an evening on the internet instead of watching TV. to build up websites that will generate passive income worldwide for the rest of your life is another plan perhaps. There are many rags to riches stories of entrepreneurs but there are, percentage wise a lot more rags to rags stories. That’s why the rare few that have forged a unique path are idolized.

The point is you don’t have to reinvent the wheel when staring to go into a business. In fact that is dumb place to start. Most of us are not Branson’s and Trumps or Tom Hua’s but we can hang onto their coat-tails. Our heroes forged paths for a reason, for others to use them and make their path smoother than the heroes had it. Which path will you follow? People have been running businesses on this planet for thousands of years and getting it wrong and right! Their experiences are available to you in libraries and on the internet. You must have an experienced trust worthy mentor. Whether that mentor is in person or in a tape or a book is irrelevant. But it must be someone who has the results you are seeking, not someone who just talks the talk, like a neighbor or someone your Aunties best friend once heard of. Who’s business model will you follow? Do they have the lifestyle you desire?

Biographies are a great resource to find the “how” of running businesses and the necessary attitudes. Franchises that are turnkey operations wonderful they eliminate many of the associated risks and lay down clear paths, but they require large up front money, still require time and labor, your still exposed to investment risks every week and it is still a shop that can only service so much business in your area. They still have ceilings and limitations. But the potential and costs to get involved in online affiliate programs wipes the board and is available to anyone like you today! Internet money can be a realistic and much safer choice. There are so many resources and summits at your finger tips with the internet just get to it and find them, as your doing right now it is easy to find effective online business models because so many people are doing it. More new millionaires are made online today and every year than in nearly every other business and investment strategy.

The online world is your market which means there are no ceilings to potential to earn as opposed to a shop front space. If you’re already reading this then you’ve already bought plant and equipment and have a place to run your business from and are already covering overheads. You are over half way there already. If you have ideas, talents or knowledge to share then you are nearly there! You may need to buy extra software or purchase training tools to get hold of and be able to action proven plans. As I said there are no magic bullets or magic wands, in life you get what you pay for! There are plenty of internet get rich free opportunities, but beware, do your homework! Look for testimonials, and quick responses from the providers, do they sound desperate, how many things are the offering you to buy on one page.

Does it look professional and are the products or backers ranked highly naturally? Are they truly global? Do they have professional graphics and sales letters? In short do they present themselves the way you’d like to present yourself? Do they have what you want? Have they made real internet money themselves? Once you look around you will find many inexpensive, low risk ways to model successful online business that can win your financial freedom where the same cannot be said of traditional businesses.

4. Lifestyle is the Outcome.

What is it you really want! Both for the business and for your life. Once you know your outcome choosing which business style will be easy. When most people think about getting into business they are thinking “I’ll do what I love, I’ll have no Boss, I’ll set my own hours I’ll have other people do all the boring stuff for me and in no time I’ll also be rich because I know I’ll be better at business than my current boss and he/she is loaded!” All of this can be had, and it can be had in either style of business, so in terms of outcome let me repeat make a distinction between doing what you love as your own boss and running a business. They are not necessarily the same outcome! If you love the idea of running a traditional business then great,, that’s your outcome.

If you want to do what you love doing but working out budgets and rents and wages and being an employer is not your thing then that is a different outcome and you need a different plan. Be clear, crystal clear on what you really envisage your traditional business and your life to be like. Write down every detail you can conceive of. (One of my mentors even suggested that I know how many spare roles of toilet paper I keep on hand) Everything you can think of, from stock to furnishings to adverts to hours, licenses insurance and resources (including people, like accountants and lawyers) needed etc This is fun to daydream about and create, it helps to visualize, get a real picture of what’s needed and what’s ahead. Have a qualified accountant look at it with you.

Go over it with your mentor or local council until the picture is complete. Don’t forget hobbies and family and friends time when creating your dream time plan and when your done look in the local telephone book find someone running a business like you envisage and see if they’ll spend some time with you so you can see if your plan is real. What you may find is that it can appear a lot more involved and intimidating than you thought or you may find it boring or exciting. If it’s not the last response (exciting) than traditional business is not for you. But maybe you still want to fire your boss and live your passions unburdened. Is it time to your self or with family, time to study or contribute to your church or charity and community? Write this down, write a picture of exactly what you want that lifestyle to look like. Maybe you are still after the lifestyle and security but don’t need the hassle of traditional business.

There are plenty of phenomenal internet money opportunities available today where with very little skill or time you can set up great passive income like from affiliate programs, butterfly marketing etc that you get into cheap and enjoy a lifestyle where your passion remains your passion unencumbered by having to have it provide security as well. I found so many great mentors, books and online programs for education and business skills I wish I’d read before 16 years of knocking myself out in traditional business. Whatever your outcome, whatever your choice, I hope this article has helped shorten or smooth your road and clarify your journey to living your dreams. For more ideas about businesses, resources and financial freedom to pursue your passion check out my link for further info.