September 7th, 2009
Starting a Home Business in a Downward Economy
By Lesley Spencer Pyle, MSc
As a result of the current economic situation, many people are out of work or fearing they may be out of work and are now considering what other options may be out there for them. One alternative that may come to mind is whether this is a good time to start a home based business. Many people dream of working for themselves but the security of a job prevents many from taking the plunge. When that security is gone or at risk, it is a good time to consider other options. There can definitely be arguments either way, but this could be a great time to get a new business off the ground if you are motivated and prepared to make it a success.
One reason is that in tough economic times, small businesses have a benefit over large companies because they are able to adjust to economic conditions easier than large corporations. They can add services and products, change marketing techniques and cut back on expenses without having to go through the corporate red tape, thus slowing the implementation process.
If you are thinking about a home business but aren’t sure what type of business might be right for you, make an inventory of your skills, interests, experience and expertise as well as a list of what you truly love to do. Using those two factors, you can begin to discover what type of businesses may fit with your qualifications and passions.
Here are some ideas of start-up businesses that can be started with little cost:
On-line store: As long as you can get a website built, you can sell products without having to invest in inventory. This is done by drop shipping items directly from the vendor. To start, pick a theme, whether it is children’s clothes, candles, gift items, etc. You can then contact wholesalers who sell wholesale and see if they will drop ship items. You can then list them for sale on your website and when an order is placed, you collect the money from the customer, the vendor will ship the product, and you pay the vendor.
As long as you are able to negotiate a good wholesale price with the vendor and you have a reasonable mark-up on the item, you will make a profit with little overhead. The most difficult aspect of this type of business will be marketing the website and providing competitive prices.
Virtual Assistant: If you have previous experience as an executive or administrative assistant, there are many people looking to hire a support person on an as-needed basis. As the rate of small businesses increase, the need for outsourcing will increase, especially for those with administrative skills.
Sales Representative: There are a variety of businesses that have evolved as a result of a product invention. The business owners had the creativity and persistence to develop a product, however, many do not have the time or experience in getting the product to retai...
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