I'm starting
a home business next month. I have a maximum of
$3,000 in start-up capital. Where should I invest
it?
JD: Spend $1,000 on
a PC with a printer, online access, and small
business software. Then, spend a few hundred bucks
on expert assistance and advice. Beyond that,
a good Website and Web host will be necessary.
KD: First, study the market you will be accessing.
There are different methods and types of business.
What is it going to take for you to be successful?
Get mentoring, go to the small business workshops
offered by the Small Business Association (SBA),
and get the fundamentals down for structuring
your business. Marketing and inventory are the
two largest items for a business. See what it
takes monetarily to start off. Get in a partnership
with a large-scale printer if your company has
no marketing tools, or create your own at home
with all of the software and hardware that is
available.
TF: You should invest in the company in which
you are starting your business. Be sure to start
at the level that is appropriate for your commitment
level to the business. What I mean here is that
if the company allows you options in getting started,
go for the big one. Position yourself for profit
from the beginning. Invest in a good cordless
phone with a headset. Make your list of warm-market
contacts, and purchase some additional leads.
Put the extra $1,500 to $2,000 back in the bank.
You may need it in your second month.
TH: Spend $500 a month for six months on leads
with e-mail addresses, call them, and drive them
to your site.
YS: Spend at least $250 to $500 on education.
I’d buy the best advertising and marketing
books around to study. And then if there was anyone
in the business who had a home study program,
I would purchase it. If not, I would try to buy
an hour or two of an appropriate expert's time—not
someone who is just consulting, but someone actually
doing it. What you do next depends on what business
you're going into. I would suggest selling information
products. If you can identify a hungry market
willing to pay for a solution to their problems,
you’re all set. Just create that solution.
You may need to spend a little on hiring a freelancer
from www.elance.com or something like that. Then
with the remainder, I’d invest in marketing.
HS: Invest in a legitimate, sound networking company
where timing for the product or service is ideal.
How should someone set up his/her home
office to maximize its effectiveness?
JD: Make sure it is
in a quiet place. I remodeled my basement so I
could get some peace and quiet. That has worked
out well. You need to minimize distractions.
KD: Set up an exclusive place, which is used only
for business, so one gets the percentage for tax
deductions. A filing cabinet is a must for keeping
records. You'll need a book shelf for materials
and books used and a functional desk, especially
with the world of computers these days.
TF: It should not be cluttered and should have
everything you need within an arm’s reach
(i.e. your telephone, computer, phone scripts,
lead lists, important phone numbers, goals, etc.).
TH: Get a comfortable chair, a nice phone, and
a computer.
YS: Personally, I like my desk close to a window.
I prefer to be able to look outside and not feel
trapped like a rat.
HS: You should have a dedicated fax line and a
business phone with three-way calling, call waiting,
and caller ID. You'll need a computer and a copy
machine. The office should be a quiet, separate
room that gives you privacy and a chance to focus
away from the family.
What are the advantages of earning a lot
of money. What are some disadvantages?
JD: My biggest thrill
is being able to spend more time with my family
instead of working long hours to pay the bills.
As far as disadvantages, there are very few. The
tax payments are big. I pay more in taxes every
year than I used to take home, but that comes
with the territory. It’s a fair trade off.
KD: Being able to do whatever I want, when I want,
and choosing my schedule anywhere I will be. Disadvantages:
folks make up stuff about who I am as a person.
TF: Interesting question. My wife would be more
equipped to answer this question, but I’ll
do my best. The obvious advantages are more simply
having the money to do what you want, when you
want. If I want to buy something, I can. It’s
great to not have to say, "We can’t
afford it." The disadvantage of making lots
of money is the possibility of spending too much.
It is possible to get a little crazy in the spending
category when you’re making $20,000 per month.
Most people have lifestyle changes that adapt
to their newer incomes. We just have to be careful
not to overextend ourselves.
TH: The biggest advantage is not having to worry
about money. I am convinced that the biggest disadvantage
is that you only attain money as your ability
to handle problems increases. So, if you have
money, you also have a lot of “problems and
emergencies” to handle all the time.
YS: Mostly it gives you freedom and piece of mind.
It’s an incredible feeling to wake up and
know that it doesn’t matter if I do anything
or not. The orders off our Website will still
continue to pour in, and the money will still
be deposited in my account. It gives you freedom
of choice. I don’t have to work for money,
which means I can choose the projects and people
I want to work with.
HS: It gives you freedom of choice and the ability
to control your destiny. It eliminates pressure
and makes you a better, more effective recruiter.
What was the motivating factor that drove
you to start your own business?
JD: I was tired of
the rat race, and also tired of barely making
ends meet. It reared its ugly head every month
when I mailed my bills. That became stressful
enough for me to finally do something.
KD: Freedom to create what I do and when I do
it and to travel globally. I am independent, and
even when I had jobs as a teen and when I first
entered corporate America, I got pretty creative
about what I did and excelled. So, I was given
a certain amount of freedom in those jobs I held.
I like being able to get up and walk down to my
office.
TF: I loath people telling me what I can and cannot
do.
TH: Attending a top-ten university and seeing
my older peers graduate to $30,000-a-year jobs.
HS: The alternative of working for someone else
as an employee was never an option.
The most underrated activity in business is…
JD: Marketing and advertising.
KD: Prioritizing the time and the commitment it
truly takes to build a long-term business. Really
getting clear that it takes a while to build a
self-sustaining, income-generating business. It
takes sales to build a business. Sales = Income
= Business Profitability
TH: Staying organized.
YS: Constantly marketing, not just when you feel
like it or business is slow.
HS: Showing up.
