Running a home-based business

If you have been retrenched or sick of your present job, you may be inclined to think of starting your own business. It can be a tough but rewarding journey. And many may not have the big budget or financing needed to rent an office or hire staff.. So, probably the next best thing is to do it on your own and at home.

I've listed 7 pointers below to help us in our thinking process.. like a checklist..

1. Niche market. There're many businesses out there selling millions of goods or services. So, you must find your own niche to differentiate yourself from the rest. Otherwise, you will end up in the commodity section where people fight on price alone.. Apply market segmentation wisdom here.

2. Branding. Even if you are a small player, branding is still important. Whether you are selling your service or simply yourself, you need to brand it. Branding is not just a nice looking logo. It is everything about your business, practices, product/service, image & you! Even how your website looked reflect the intrinsic value of your brand.

3. Be creative. Be innovative. To stand out from the crowd, you have to be creative and innovative in all aspect of your business. Being small means you can be flexible in your offering to prospects. Use that to your advantage.

4. Have a plan - financials, milestones & targets. And follow thru while fine-tuning along the way. Even a one-man outfit still need a good plan. Set revenue & profit targets. Set milestones. Set review date. Do perform scenario planning - best, normal & worst case scenarios. Finally, the most important for startups is the cash-flow management. In it, you must learn to manage your receivables well. You may have booked your sales but if no real money flow to your bank you will not be able to sustain for long. Beginning stage, look at your plan on a weekly basis..

5. Quality Service. Customer-oriented. All said, at the end of the day, the question is whether you deliver value to your customers. And service is one of the most important factor you must consider! In whatever you do, be customer-oriented.

6. Internet & technology as a tool. Make full use of Internet & technology to make your business more effective & efficient. Do note that these are just tools, however. Just because everyone is on facebook and twitter you must have a presence there too. It all depends on your target market. Do consider your ROI (return on investment) in these areas. For example, if your target audience dont use the internet or google most of the time, it may not be wise to invest much time, effort & money on Google ads. Having said that, you must review the status quo periodically as consumer behavior changes over time.

7. Do not mix work and play. Even though you are at home, do separate working and family times. At best, separate your work area as well. Discipline is called for at the highest level here. And try to keep in touch with the world out there! Sometimes you may be too closed up that you loose touch with the rest of the world. Call your ex-colleagues & friends out for coffee and catch up with them. Know what's going on other parts of the business world.