Building A Work From Home .
Eliminate Your Fears And Doubts About Working From Home.
Starting a home based business can be rewarding and frightening. There are two key factors that play a big role on starting and running a successful work from home business.
Don’t do what you don’t know how to do and don’t do what you can’t do.
These simple things will take away a lot of headache that is keeping you in a revolving circle.
Starting a business is like getting a job! When you apply for a job, you are most likely applying in a field you are experienced in, why else would you be applying? You are knowledgeable in that field and you will be able to accomplish the needed tasks employer requires of you with some training on how the operations and systems work on their end.
Same applied to starting your own work from home business. Approach is like a job. Ask yourself a question. If it’s a drop-shipping business you want to get into, do you have any experience in drop-shipping? What I mean by experience is not by reading a book, but by actually having foundation in solid educations and experience in that field. If the answer is no, then why are you starting a drop-shipping business? If you are a doctor, are you going to apply for a job as a lawyer?
The third and this is by far one of the most important things to mention is expectations. I see ads on Facebook all the time by individuals selling “Make 200K (thousand) in one month with this simple course”. First thing that comes to mind is “wow”, I can make 2.4 million dollars a year and all my financial problems will go away and I can get that house of my dreams and buy a Ferrari etc. No, not really.
We hate to be the ones to deliver the bad news, but it’s something that most people refuse to accept. You won’t make 2.4 million dollars a year, because that 2.4 million per year is sales.
If you don’t understand the difference between, sales, revenue, gross profit, and net profit, just to mention the few, there is some educating needed to do on your part before you start a business.
Let’s take this example of “Make 200K (thousand) per month”, and break it down. I am going to assume that by reading this article you don’t have access to a large capital. What I mean by large capital is at least 1+ million dollars in liquid capital. Let’s also assume that your budget to start a business is a thousand dollars.
Keep in mind that “make 200K (thousand) per month” is based on sales. This is how much you’ll make in sales before any deductions including deducting your cost of goods.
Since your capital to start a business is a thousand dollars, let’s assume you had some extra cash laying around and you put an entire thousand dollars on advertising with Google to promote your brand “new”, work from home business. In this case, let’s assume that your CPC, (cost per click), is $10.00. In order to reach 100 customers it will cost one thousand dollars! Let’s assume a conversion rate for your new work from home business is 5%. This means that out of 100 clicks, 5 will actually make a purchase. To reach a 200K sales goal with a thousand dollar advertising budget, on 5 sales, means you’ll have to sell each product for a price of 40K. That’s a lot of money for someone to trust in spending in your business, without even having any knowledge of your business. Remember, you’re a start-up not a brand.
In some cases to achieve a 200K in sales, an individual may have to spend double the amount made in sales in advertising and marketing which equals to 400K. Are you able to take 200K in losses? Probably not. Not to mention cost of good can exceeded 150K, which now brings your losses up to 350K.
These individuals who teach you how to make money have in most cases never made real money themselves, nor have they started a successful online business, and simply sell a wacked out theory on how to make money they learned from a book, or a friend. The ones who have achieved substantial sales, sell you false expectations. In the eyes of law neither one of them are doing anything wrong, they are teaching. The only issue is what they are teaching in most cases will just keep pulling you further away from achieving your goal of financial freedom, because you are spending money on course that keep you in a circle instead of investing that money to grow your business.
True financial success has never come easy. The more you earn the more you will have to manage if you plan on of course keeping what you earned. You’ll always work even when you think you don’t work.