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It’s easy to start a home business, right? Pick a name, buy a website domain, register your business, make sure you’ve got cohesive social media branding, and you’re good to go, surely? It’s not quite that simple anymore.
A home business, while more accessible than any other business type, still needs a push to become profitable. You’re still going to need to invest in marketing, customer service, and making sure you deliver the best product possible. And even after all that time and effort, you might only just be breaking even!
So what does it take to make sure your home business turns a profit and you can live off of a good income for yourself? It’s all in what you target, how you market, and what your goals are for the future. Let’s go through all of the relevant points below.
Through Actionable Goals
What do you want for your business? Whatever your goals, they need to be realistic and actionable. If they’re not, you’re just going to waste all of your resources trying to achieve them! They can’t be vague either – you need to know what it is you want and how you’re planning to get it.
Actionable goals are set from the beginning and they’re also regularly changed. This will allow you to reflect the reality of your working situation. For example, if you’ve recently had a change in circumstances and can’t work the same hours anymore, it’s unlikely you’re going to be able to achieve a sales goal you’ve set for the end of the year.
You need to change this to give yourself more time, and to factor in what’s going on in your life. If you don’t, you’re just going to miss the goal and end up feeling like a failure, which will then demotivate you and make it harder to find the energy for your business plans altogether.
Through Networking
Networking isn’t just about impressing other business owners or potential investors – although doing that can help your business become profitable in the long run. Secure funding from the right person and you’ll have less debt, more products to sell, and more cash to put into marketing, etc.
Aside from that, networking is also about treating these people as potential clients, especially if you’re selling a service that’s both B2C and B2B. It’s why attending networking shows and conferences is still a great idea in 2024. The more you show your face and get to know people, the more those people are going to remember you, pass on your details, and even talk to potential customers for you.
Networking does a lot for a business’ profile, even if you’re worried you’re too small of a company and don’t belong in the same room. Get in there anyway, and be friendly and warm to those you come across – you never know the kind of relationship you could strike up!
Through Repeat Custom
Repeat custom is something all businesses are after, no matter how big or small or whether they’re home based or not. If a customer comes back to shop or order again, you can rest assured that they like what you deliver and you can make routine profit off of them.
Repeat customers also tend to be the best word of mouth advocates for your business, as they may bring family and friends to you, and be more likely to shout you out on social media. User generated content is an absolute win for the modern brand!
Do your best to encourage repeat custom. Loyalty programs go a long way, but so does appreciation for your regular customers; an exclusive discount goes a long way, as does giving them a longer time to pay the invoice you’ve sent them!
Of course, you want to be sure you can rely on a customer like this, so make sure you save these perks for the people who have shown up time and time again. This is a valuable facet of customer service, but it should be reserved for the few.
Through Local Marketing
Local marketing can do a lot for a home business. When you have marketing materials to distribute throughout the neighborhood and town around you, you can target customers right on your doorstep. This is a great strategy, as you get to work with these people on a one to one basis, and impress them through personalized customer service.
The first step to local marketing? Invest in quality printing and get your business’ name and logo down on shiny, eye-catching paper. This way, everything someone needs to know about you can be seen in one place, and then simply dropped through their door, or left at other local businesses for them to pick up.
The more you impress people in the local area, the more those same people are going to come to you. Word of mouth marketing is one of the best promotions you can secure, and that only occurs when you deliver an exceptional experience to people who can share their tale easily – a.k.a., locals!
Through Social Media Success
Social media offers something to the home business that’s hard to find elsewhere: exposure on the mass scale. Any post of yours could go viral at any moment, especially if you track trending tags, topics, and audios to make use of. A well targeted video could bring a lot more followers, and many more orders, your way.
However, you shouldn’t count on viral marketing to make your home business a success. Rather, this can happen, and should come as a great benefit to you, but primarily you want to focus on maintaining a steady stream of social media content.
Just like with blogging, the more consistent you are, the easier it’ll be to build an audience that’s willing to engage and interact with you. And that’s better than any follower count number that looks shiny on the surface! If you can generate income, even with a low number, your business is soon going to show pure profit.
Through Financial Planning
Long term financial planning is crucial to the home business, to make sure you don’t take on too much debt and/or you’re not eternally in the red and always paying out more than you actually make.
A home business has a few advantages when it comes to staying in the green. Firstly, there are few overheads involved; your home already has its bill paid out of your personal account. If you’re living in a dual income household, this becomes even less of an expense.
Secondly, it’s easier to come up with a business emergency fund. You’ve got little to pay out for, meaning your savings last longer, and the slow period you’re experiencing carries less dread with it.
But don’t get comfortable with these advantages. Plan ahead with a good budget, and try to forecast your sales over the next 12 months. This information is absolutely invaluable when you’re trying to grow.
Make Your Home Business Profitable
A home business becomes profitable in a variety of ways, most of which stem from the points above. As such, if you’re a home business owner, make sure you’re investing your time and energy into these factors.
Understand where you’re going, make sure you’re tracking your cash flow properly, and focus on building a quality online following. And make no mistake about the last one: small businesses can make a lot of money when they market themselves just right!