There are basically two types of home based businesses, service
and product. Each is quite different when it comes to operating
the business and handling customers. Understanding these
differences and organizing your business to match the type is
essential to your success. Let's examine some of the differences
in the two types.
The Service home business involves providing a service to a
customer rather than a physical product. These businesses can
usually get started for a small investment without a great deal
of room. This service can range from consulting to suggest a
problem solution to actual handling of the customer's product
ordering. Total commitment to the customer is essential. A home
based service business lives or dies on this commitment. The
customer looks to you for help and must trust your solution;
therefore trust is the first important step. The second most
important attribute in the service business is expertise. You
would not go to a dentist to fix a broken foot. Your dentist may
be trustworthy but feet are not his area of expertise. Go with
what your area of expertise happens to be. Everyone is good at
something, your expertise may be from previous jobs or a certain
hobby you are passionate about. Never underestimate your own
talents.
A product based home business involves selling an actual
physical product to the customer. The product is the central
point to the customer. Generally the customer has a need or
desire for a specific type product. An example could be a car.
Everyone needs one but sometimes they desire a different one
from what they have. This need and desire exists for the
customer and it is your responsibility to meet that need. So
unlike the service business, the product brings the customer to
you. This is when the trust factor kicks in. Most people buy
from those they trust. Your product may be similar or even the
same as many others on the market. The trust factor and fair
price can win the customer. After the sale customer service will
insure continued loyalty and many referrals for other product
sales. With a product business there are two options – selling
your own product or selling someone else's product. These two
options are different, as well.
When you sell your own product you have to keep inventory of
the product. You have to have the product manufactured either in
your own business or off-site. Along with this manufacturing,
your business will handle all the legal issues with the product.
Customer support comes along with all your other
responsibilities. However, you are in complete control over
every aspect of the business. You ship, handle issues and sell.
It is a big thing to take on, but if you have a good product it
can mean huge profits.
The second type of product is someone else's. You usually do
not keep an inventory or manufacture the product. The legal
aspects and product support are not your responsibility either.
Shipping and overall fulfillment are handled by someone else.
The main drawback however, you share the profits with the
product owner. This can be a split or commission percentage.
This means less profit for each sale.
It becomes obvious that there are many decisions to make before
going into a home based business. How do you decide which is the
best choice for you? That usually involves thinking about what
you are going to sell. If you already know then you know what
type of home business is best for you. However, if you do not
know then you will have to go out and start brainstorming. See
what options are available and figure out what you want to do.
Your own Home Based business is tremendously rewarding. It also
can earn a nice profit for you and your family. The pride in
creating your own business and making it successful cannot be
equaled. Don't go into it blindly, learn as much as possible
about the business you are planning to run. Good luck and make a
huge profit.
C. Ken Davis: Has had many successful at home
businesses. He is now enjoying success with on-line businesses
and offers information, resources and help at: www.atointernetprofit.com.
