How to Determine Your Best Home-Based Business

In finding the best home based business for someone who dreams of being an entrepreneur, there is no hard and fast list of bests.  One entrepreneur’s best home based business idea is another entrepreneur’s worst.  So much depends on what that business owner-hopeful enjoys doing, knows how to do, and has some of the resources already in place for.

Other considerations in determining the best home based business are what the desired market will bear and what the competition is, and how saturated the market is.

The best way for someone who wants a home based business to start is to determine what she or he loves and what she looks forward to doing, what makes the time fly by for him, what she would gladly spend many hours of every day accomplishing.  The next step is for the owner-to-be to assess his or her training, skills and knowledge of various industries.

Putting the dream list with the skills list should indicate some crossover.  Those things that end up on both lists are great indicators of the best home based business type for this business owner-to-be.

If, for example, a beautician’s assistant is tired of making very little money working for someone else, braving the 30 minute crawl along the highway commute, but really loves making those women beautiful that her employer cares for.  She might well be a great candidate for a hair salon proprietorship, a nail-care business, or a facial make-up facility.

Once the industry and anything more specific in the way of products or services has been determined for the best home based business idea, the work is not done.  The business owner has to determine that the business will make money.

Questions the entrepreneur has to ask himself are: Who will be my customers? Why will they choose my service? How often will they need my services and what will make them repeat customers?  Who is the competition?  How can I vary my services from the competition, i.e., what might be my niche? And, what should I charge for my services (based on what others are charging in the market area)?

Part of determining what to charge is determining expenses that must be paid to stay in business. Once the entrepreneur determines the price that will be competitive she or he must find out if that asking price will bring in a profit.

If the price that must be placed on the product to make a profit after expenses is too high to be competitive in the market the choices are to change the market or change the product.  If it doesn’t make the company money, it’s not the best home based business.

p.s.:  This is the ultimate advice at the end of my article: Seeking residual income is the best way to start a work from home business…Earn Residual Income.

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