Are You Facing Redundancy? – What to do next.
If you’ve got an innovative idea, there’s no reason why you can’t turn it into a business.
155,000 people (according to the Office of National Statistics labour force survey) who have lost their jobs in the second quarter of this year (2012) should view their redundancy as an opportunity.
You need to ask yourself 2 questions and then formulate a Business Plan:
do you know what running a business means?
do you have the motivation and ability to deal with being self-employed?
The Business Plan
If the purpose of the plan is to make sure you have funding available to get you through the first 2-3 years including contingency funds for the rough patches or until you start to make a profit.
If you take out a loan then there will need to be financial forecasts for a three-to-five-year period, with written statements on how the loan will be repaid and when investors can expect to get their money back.
The business plan should also include market research and advertising budgets. Investors need to know that you know who your competitors are and how you plan to compete in your market. Advertising can be expensive but a vital part of your plan.
Don’t be put off but do be prepared. There are hundreds if not thousands of companies offering limited Free advice on almost any type of business, use this to your advantage and tap into the information available online.
Business planning is an activity which you need to use as a sort of checklist to building your empire! Write a list of what you need to do and by when.
A cliche I know but “It’s a marathon, not a sprint” be prepared for the long haul.
What about if you don’t have a Hobby to turn into a business.
Make a list of your existing skills
Whilst you may want a complete career change there is absolutely no point in choosing a business in which you have zero experience. Make a list of skills and experience that you can apply to your new business. You may need to go on a refresher course but investing time in learning new skills (especially Digital) will pay off ten fold.
Is there a Market in the Product you have chosen to sell?
Surveys are the best option and time well spent. Find out what the customers problem is, then offer a solution. You should also check just in case the market is already flooded with similar products or services using Google Search.
Research is paramount
Investing in an established online business does not need to be expensive, but there will be some start-up costs and usually a continual monthly fee. If the company isn’t up-front with the costs then walk away. Transparency is key if you feel that you don’t know what the terms and conditions are then it probably isn’t right for you. Contact the CEO or find out if there is a “community” within the business and ask questions. If the company response is to your liking then go for it.
Passion and will power
You will need lots of both, especially if you are still working your 9-5 job. There isn’t going to be much point in walking away from a secure income if your home-based business doesn’t excite you. Committing to your new venture will mean extra hours in the short term and you will need to have a plan of consistent daily action or it will not work.
Once you have chosen the right home business for you, I wish you every success in running your home business.