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Running a Successful Home-based business |
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Small Business - Big Impact
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Home-based businesses are the fastest growing part of the business community - over 60% of all Australian businesses are based at home.
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One household in 8 has a business in it.
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The myth is that home-based businesses are mickey mouse businesses - ‘pretenders’, ‘business intenders’ or ‘tyre kickers’.
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Not true: over 50% of home-based businesses are over 5 years old; and 70% of operators work 35hrs per week or more.
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Home-based businesses employ on average 2 full time and 2 part-time people.
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How to Succeed
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- Pick the right type of business
- Many home-based businesses are in construction and trades, business, personal and professional services
- A successful home-based business will have no need for high exposure and high overheads - there will usually be little or no direct selling, and instead of being volume-based, a successful home-based business will usually have a smaller number of higher-value customers
- Successful home-based businesses will capitalise on the low overheads and look for opportunities for high growth
- Think big, think business systems
- Many home-based business operators start out by ‘falling into business’ by accident
- To succeed, aim to grow the business beyond yourself and build in the systems to do that from the beginning
- Don’t overwork - 24% of home-based business operators work over 50 hrs per week. This is not a ‘lifestyle choice!’
- Hire and develop staff - aim to reproduce yourself so that you can retire!
- Balance home and work
- Most people in home-based business love the independence, flexibility and potential lifestyle benefits
- But most home-based business operators find it hard getting out of work mode, rather than hard getting into work mode
- Working 50hrs or more working per week is not a lifestyle
- Set clear limits - and stick to them!
- Overcome the negative stereotypes of being based at home
- Use technology - such as multiple phone numbers, combined phone and fax, email forwarding and a big web presence
- But be honest about being a home-based business, and be proud!
- Do fantastic marketing
- Network like you really mean it
- Know your customers inside out
- Pre-empt their needs, and then exceed them
- Don’t compete on price - make a healthy margin on excellent service
- Overcome loneliness and isolation
- Two of the most important underlying barriers to growth of home-based business
- Mix with other business operators as much as you can afford, network, watch and learn
- Don’t lose perspective. Spend half a day each week looking at your business - remember to work on it as well as in it
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Useful Australian Resources
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Backyarders and Front-Runners
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Research on home-based businesses in the Australian Capital Region and the Sunshine Coast prepared by SES & CREEDA (1999, 79pp). Available online from http://www.industry.gov.au - follow links to small business then publications.
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Commonwealth Government Business Entry Point - www.business.gov.au
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The Commonwealth Government’s ‘business friendly’ web portal is a large site with a great section for home-based businesses. The home-based business section includes useful links to online State and Territory home-based business-relevant material, and to 24 councils with home-based business information on their websites (including practical information like allowable criteria for operating a home-based business and Development Application forms should they be required).
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City of Casey, Victoria - www.homebusinessmanual.com.au
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This home-based business website, developed by the City of Casey in conjunction with South East Development and the Micro Business Network has a twin focus - to help people who want to start a home-based business and to help those who already run their own business.
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NSW Department of State and Regional Development - www.smallbiz.nsw.gov.au
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A large and comprehensive website on thinking about, starting and growing a small business. Special sections on home-based business, including a step by step planning and development kit accessible at ww.smallbiz.nsw.gov.au/homebiz/default.htm
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Home truths: Handy Hints for Women in Home Based Business
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Western Australia Small Business Development Corporation (2000, 64p)
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A comprehensive book designed specifically for women thinking of starting a home-based business. The book covers a wide range of important issues in a lively magazine style format. Issues include: checking the viability of your business idea; setting up a home office; balancing ‘home’ and ‘work activities; developing a sense of professionalism about your home-based business; basic business planning and accounting; and includes a list of useful contacts and references. For a quick look go to www.sbdc.com.au and follow the links to Women in Business and then Home Based Business.
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Network Notes - www.mbn.com.au
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Newsletter for Micro Business Network
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Micro Business Network (incorporating Home Based Business Australia) is a small business which aims to help other small businesses grow through facilitating networking, lobbying government and corporate sectors, maintaining an internet site for members to market their products, providing a mentors program, and offering members better deals through alliance with some financial, accounting and management organisations.
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Micro and Home Business Association - www.mhba.org.au
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Formerly the Home-Based Business Association of the Australian Capital Region, this grass roots association provides support, business directory, workshops and seminars for micro and home-based businesses.
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