How To Discover Your PERFECT Home Based Business – The 1st Of 7 Keys – A Profitable Business

This is the first in a series of seven articles that tell you how to sift through all the home business opportunities you hear about every day, and find the PERFECT home based business for you.

Are you ready to start making some real money in your own home business without working 60 hours per week? Are you ready to stop throwing your money down the “home business opportunity rat hole”?

Read on and I’ll show you how to test every home based business opportunity to make sure it fits the definition of The PERFECT Home Business, before you invest your time and money. Then, focus on the one that fits the best, and make it a success.

Each letter in the word “P.E.R.F.E.C.T.” stands for one of the 7 keys to finding the perfect home based business. Each key is something your home based business opportunity MUST have in order for you to enjoy the financial freedom and lifestyle you want.

What makes an opportunity P.E.R.F.E.C.T.? The “P” in PERFECT stands for “Profitable”. If your business isn’t profitable, why do it? If it isn’t highly profitable, you won’t be able to earn enough to make it worth your time, or you won’t be able to grow your business by reinvesting your profits back into the business.

“Profitable” means:

• High gross profit margin (preferably greater than 65%) and net profits of 20% of sales or better before taxes.

If you sell something for $1.00 and it costs you $.50, your gross profit margin is 50%. That’s about the profit margin most retail stores get. You need to do better than that to survive and thrive in your home business.

All of your other expenses such as advertising, overhead, and so on, have to come out of your gross profit before you have any “net profit”. If you sell something for $1.00 and the costs of your product, including all of your other expenses, add up to $.90, you only have ten cents per dollar in net profit (that’s a 10% net profit).

So, for example, if you want to earn $50,000 per year from home with a 10% net profit, you would have to sell $500,000 worth of your product. Wow, that’s a lot of product. Wouldn’t it be better to only have to sell $250,000 worth of product, or even less, to earn your $50,000 income goal?

That’s why you need a business with at least 20% net profit. And, if you really could sell $500,000 worth of products, wouldn’t it be better to have 20% net profit and earn $100,000 per year on that $500,000 in sales? The PERFECT home based business may even enable you to earn up to 40%-60% or more (sometimes more than 90%) in net profit. Yes, really.

At 90% net profit you would only have to sell $55,556 worth of product to earn your $50,000 income. That’s my kind of home business!

• “Profitable” also means a net profit (your “salary”) before taxes of at least $50,000 per year. And $100,000 or more per year would be more like it (unless your goal is to supplement your income to the tune of $500 to $1,000 per month. But, would you turn down $50,000 per year if you didn’t have to work any harder than you did to earn $10,000 per year?).

Your goals may be different than mine and you may be satisfied with lower profits. But, I believe you need to set your goals high, yet at a reasonable level. Then, even if you fall a little short, you will still be very successful.

• Low overhead (less than 5% of sales). Overhead is all the “fixed expenses” of running your business such as computers, printers, other equipment, furniture, office supplies, and office space rental costs.

A home based business is ideal for keeping overhead low, but you still have to be careful to minimize the space needed, the cost for utilities, and the equipment needed to run your business. Don’t go hog wild buying an expensive desk and file cabinets with your first profits. Instead, reinvest those profits in your business and keep your overhead low. You’ll be glad you did.

• Low labor content for manufacturing, assembly, or shipment of the product(s).

You don’t want to spend all of your time assembling and shipping something you sell. Most of your time should be spent on marketing and growing your sales and profits. The PERFECT home business enables you to sell products that involve little or no labor cost to make them or ship them.

• A high average order. Believe it or not, it takes as much effort to sell a $5.00 product as it does to sell a $50.00 product or a $500.00 product, maybe even more effort. So, the PERFECT home based business offers products with a high perceived value and a price well above $20.00. The exception is when you want to sell a low priced product, or even give something away, just to get customers added to your e-mail list so you can sell them other more expensive items later.

• Low initial investment required (less than $1,000 preferred). I don’t know about you, but business opportunities that require $5,000, or $25,000, or more to start scare me a little, unless the return is well worth the risk. There aren’t too many people that even have that kind of money to invest in a business. Why not find the PERFECT home based business that only requires $1,000 or less to get started, perhaps even a few hundred dollars?

• Small inventory with rapid turnover, or no inventory required. Imagine your garage or basement stacked from floor to ceiling with products waiting for someone to buy them. Yuk! Much better to fill each order as it is received without having any inventory in your home, or at least a very small inventory. The PERFECT home based business will allow you to do that.

• Repeat or backend sales potential. One of the highest marketing costs is the cost of getting a new customer. If that customer buys your product over and over from you (repeat sales of a consumable product or a monthly membership fee, for example), or if the new customer buys other products from you later (backend sales), you can dramatically increase your sales and profit. This is a very important ingredient in the recipe for a successful home based business.

Five Ingredients for the Best Home Based Business

The key aspect to starting the best home based business is to ensure that you are able to provide a product or service to a selected target audience, who want or need that product and service.

That audience have to be willing to buy it from you and there must be sufficient numbers of customers to buy the product or service. Also, and most obvious, you need to be able to make a profit or else you have no business.

The best home based business is one that is online. There has been a huge consumer shift over the past few years of people buying products and services online and this new digital economy is growing at a phenomenal rate.

The five fundamental ingredients that the best home business:

A Solid Business Plan

The best home based business model needs the perfect mixture of recurring income (when you sell something once and get paid every month, such as a membership website), affiliate income (when you sell items and get paid a commission) and high ticket income (products or services that you sell where you earn in excess of $1000 per sale).

A List Building Strategy

This is s system that allows you to build a list of customers who are interested in your product or service. You will need an autoreponder system and something of value that you can give away to encourage people to subscribe to your list (like a free report or DVD).

A Marketing Funnel

The best home based business marketing funnel follows on from you list building strategy. Once your prospects have subscribed to your list, the marketing funnel helps to build a relationship and trust so that your prospects make that all important first buying decision.

Paid and Free Traffic Sources

Customer traffic is the lifeblood to any home business and you must ensure that you have the appropriate skills to use both paid and free customer traffic that is relevant and will convert into customers.

Peer Group, Mentors and Mindset

If you want to build the best home based business you are going to need help. It is important that you invest in your home business education to learn from those that have gone before you. Learning from someone who’s already successful will make a big difference to your results.

The best home based business is one that does not have an expensive set up cost, has a huge audience of potential customers and allows you to offer specific and popular products without having to buy them first and hold them in stock. This form of home based business is called online affiliate marketing.

Online affiliate marketing is where you, as an affiliate, sell products and services and receive a commission when they are purchased. You do not need to buy the products first. You simply locate a vendor that has a popular product (and there are many of these) and sign-up as an affiliate for that product. This does not cost you anything. You then promote the product to your list of customers via email or online or offline advertising. When a person buys the product from you, the vendor will then pay you a commission. You do not have to worry about the product fulfilment or delivery, as the vendor will do this. Also, a good vendor with a good product will supply all the necessary training and marketing materials you will need to help you sell the product.

Many entrepreneurs want the best home based business as they have come to realise that relying on one salary from one job no longer provides fro a secure financial future with all current economic round of job cuts, pay freezes, fewer working hours and lower pay.

The internet offers the best home based business opportunities. To put this into some perspective, the holiday season online retail spending for 2012 was a 16-percent increase over 2011. This includes November 26 (aka Cyber Monday) which became the heaviest online spending day on record at $1.4 billion. Just having a small slice of this would good for any home based business!

New Home Based Business Ideas – How Online Opportunities Enhance Success

New home based business Ideas? How about a home based business which you:

1. do not need to spend much time to set up?
2. do not need to spend a single cent as start-up cost?
3. do not need to spend a single cent to get the products or inventories for your business?
4. do not need to spend a single cent to market your product?
5. do not need to bear any risk if it fails?

If you answers are “Absolutely! Yes!” then you should start exploring online home based business. Follow the following simple 5 steps of new home based business ideas and leverage on the online opportunities to start making money online.

Step 1. Sign up for a PayPal account (an online opportunity to receive money from your customers without incurring any cost and without any constraint)

It will just take you a few minutes to sign up for a free PayPal account. Once you have a PayPal account you could start receiving money from your global online customers 24/7. Unlike the conventional business where you need to rely on the conventional banking systems to receive money from your customers and you may also incur account opening cost.

Step 2. Conduct Research for a profitable niche market (free online opportunities to determine who are your profitable customers for your online home based business)

Conduct your own online research. Visit ClickBank, Amazon, eBay websites. These are the online platforms for you to find out what products are ranked high or popular to determine your profitable niche customers. Leverage on Google AdWords keyword tool to confirm the popular niche markets for your home based business. A high demand niche market is the key to earn money online. All these researches could be done within a day and without spending a single cent.

Step 3. Source for a product for your niche market from the affiliate networks (free online opportunities to obtain the products for your home based business)

Join an affiliate program. It is a business model where you make commissions from promoting the merchants’ products or services through online means. You could get all the products for your niche market for free from the affiliate networks, for instance ClickBank, PayDotCom, LinkShare, etc. You could promote as many products as you wish. Affiliate networks are the free sources for the products of your online home based business.

Step 4. Create your own blog as a platform to market the products to your niche market (free online opportunity to have a store for your home based business without the need to pay rental)

You could create your own blog for free within minutes, for instance at Blogger.com. It just takes a few easy steps. In a matter of minutes you can start posting text, photos, videos, etc. to your blog. Post or write something interesting about your affiliate product on your blog. Place your affiliate link on your blog. Your blog will be your free online “store” for your online home based business. It is the platform for you to market your product and earn money online.

Step 5. Promote your blog and affiliate product through article marketing (free online opportunity to market your online home based business’s product to your online customers)

There are various ways to generate traffics or customers for your online business. But for a start, you only need to focus on article marketing.

You could sign up a free article directory account with EzineArticles, GoArticles, etc. Start writing 250-500 words articles about your niche market or your affiliate product. Alternatively, you may outsource the articles writing to the online professional writers. These articles will help you to generate traffics or to get online customers.

Remember to place your blog’s address at the resource box of all your articles. Your readers may be enticed to visit your blog and will find the affiliate products at your blog. They are your potential niche customers. This is an effective way for you to market your online home based business to your global online customers.

With the above mentioned online opportunities, you could start your online home based business within weeks or even days and at the comfort of your home. Your online home business could operate 24/7 and never stops helping you to earn money online. By using these ideas, you do not need to invest a single cent to start your home based business. This will certainly increase your profit margin. If you fail, you could easily start a brand new online business again at anytime and anywhere. With the power of World Wide Web, there is no geographical constraint for you to earn money online and you will have global customers for your online business. You should leverage on this online opportunities to make money online.

Now, are you able to see how these online opportunities could enhance your success? What are you waiting for? Join the bandwagon, take action and start an online home based business and start earning money online.