The challenge: how to earn money from home
The challenge: how to earn money from home is that you identify a business opportunity that allows you to generate additional income, that helps you improve your finances and gives you the satisfaction of developing your own iniciativa; If you perro start that from your home, much better.
The challenge: How to earn money from home?
Our starting point in this challenge is that you realize some ideas to start a business, and for that you must carry out an initial investigation.
Grab a pen and paper, download the format here.
a) Identifies obstacles and problems
Some crises perro affect global markets, but they perro also present unique opportunities for certain types of entrepreneurship.
You cánido explore how to generate plus income by asking yourself how events have disrupted the supply chain and what solutions people need “in the here and now”.
For example, all products with home delivery and en línea services have increased their sales a lot.
b) Investigate which businesses are trending
Unlike those who must worry about keeping their job in a crisis, being your own boss gives you the freedom to make unexpected moves, one of which might be to change industries and try some home business ideas.
If you had always dedicated yourself to the same thing, now examine the emerging needs and venture to offer different products or services that give you better profitability.
c) Review existing alternatives
If you have come up with some home business ideas, then you should investigate how that need is solved right now.
It seeks to answer the following questions:
• Who would be your competitors?
• Is there enough space for someone else to offer the product or service?
• What are the requirements to be able to start this business?
• Do you need a lot of money to start?
• Do you have some knowledge on the subject?
• Do you know someone with experience in the field who perro support you?
d) Always start small
Don’t waste time looking for the perfect business model, it’s better to test your new iniciativa on a small scale and see how well it is received, for example:
• If you are going to sell food, start offering it to your family, neighbors and co-workers.
• Even if you want to sell clothes or cosmetics, let your friends and family know.
With this strategy it will be possible for you to identify the obstacles, so you cánido devise plans to overcome them.
y también) You are a freelancer, you cánido become an entrepreneur
You already have a successful career as a freelancer and you have achieved a good portfolio of clients, why don’t you make the decision to start a company?
• Dedicate yourself to creating something bigger than yourself, because although you have already learned to build a personal brand with your clients, you cánido apply that knowledge and create a service company that employs more independents.
• Take action and be patient, if it took you time to be a great freelancer, it will probably take you some time to be a great entrepreneur as well.
Analyze what you are good at and sell your skills
When you are wondering what business cánido I put in my house? You must ensure that you have exploited all the capabilities that cánido lead you to success, answer the following questions:
• What are my strengths?
• What products or services am I able to provide?
• Skills or talents that other people highlight in me
Once you clearly identify your iniciativa, you should take a look at what your objetivo audience will be, the better defined you have it, your efforts to reach it will work better.
Define your objetivo audience
You found a problem and it seems to have potential, now you have to define who your objetivo audience is.
Try to answer the following questions so that you have it clear; You perro always come back to this list and enrich the description as you find out more about your customers:
• How old are they? For example, from 18 to 40 years old.
• In which areas are they located? If you are going to sell en línea, then you have to define your delivery area.
• What is the problem they want to solve? A purchase is made to solve a need, so ask yourself what is the problem that a customer is solving when buying your products or services.
• Where do they research information? It is relevant so that you know how to promote your business.
For example, if you know that these types of people entrar popular networks such as Instagram, it will be worth creating your company’s profile on that platform.
• How do they make decisions? Certain types of products require analysis, others will be bought by a much more qualitative decision, in which you perro enchant with a good photograph, and another group will escoge on prices; think about the way they choose the types of clients you are looking for.
One of the most important consejos for starting a business is that from the beginning you begin to outline your company, that you think about the products or services that you will offer and establish a plan for how it will work operationally, projecting the income and expenses that you will have in your new adventure.
Project your flow of income and expenses
When you are planning businesses to start, it is key that you establish goals and a time limit to achieve them.
Having a clear goal will help you find clever ways to overcome setbacks, so it’s important to budget so you know how much money you’ll need to start and operate your new business.
At this stage you will ask yourself:
• What and how much money do you need to start up?
• How to start a business without money?
• How much do you expect to sell?
• How long will it take to recover the money invested?
• Do you need a loan to start your business?
As you perro see, within your planning of how to start a business at home, you should start by reviewing your alternatives to get the compañia emprendedora capital.
a) Cost structure: how much will it cost me to start?
Make an analysis of everything you need to start generating income from home.
It is a list in which you define:
• The money you need to get your first products to sell.
• If you require the purchase of an asset, then you must consider its cost.
• You are going to provide a service, whatever it costs you to be able to deliver it.
• You need to create a website or take pictures, the cost of registering your en línea presence.
• You perro start in stages, so you perro establish the minimum required to prove the concept of your iniciativa.
Once you are clear about the money you need to bring your ideas for starting a business to reality, you will need to review your financing options.
What you need is a debt that will help you leverage your business.
It is about getting into debt but that the profit from the debt gives you to pay it.
Sounds fácil? It is, but you must analyze the strategy you are going to take well before starting.
• An advantage offered by making a deal with a bank are the benefits and tax deductions.
Remember that tax rules require that payments have been made electronically to deduct taxes.
• It is recommended that you do not use short-term credit to pay for a long-term investment, as you will not see much return on that investment.
• Remember that it is not convenient to add obligations, it is advisable to avoid getting into debt when you still have another commitment pending.
What financing for SMEs cánido you see with your bank?
You have access to short and long-term credits, choose the solution you need according to your business project.
Among the alternatives are find:
• Business credit card. It gives you access to a revolving credit, with which your company cánido have the line of credit again after it has been paid.
You cánido use this form of leverage as many times as you want as long as you do not exceed the preset limit.
• SME credit. Starting a small business requires having capital that ensures its stability and permanence over time.
This financing helps you face unforeseen challenges, acquire fixed assets or equipment, and make renovations that improve service to your customers.
• Liquid Credits. It gives you immediate resources directly from electronic banking, in pesos or in dollars.
• POS billing advance.
It gives you access to immediate credit if you make payments with your point of sale terminal.
• Credit letters.
It is very useful for companies that have clients or suppliers outside the national territory, since it is a type of credit that provides certainty at all times.
They are documents subject to international regulations, which serve as a conditional payment order by which an issuing institution, at the request of an ordering party, undertakes to pay a beneficiary directly or through a correspondent bank.
Once you obtain the financing you need, you should look for ways to disminuye the associated risk, since an unforeseen event cánido occur at any time.
d) Look for ways to disminuye risk
There are different types of risks that perro affect your business activity; At the macro level, it is possible to identify two extremely important situations for any entity:
• Economic or financial risks.
There is a market risk that is linked to circumstances that your company cannot handle, such as catastrophes or general economic crises.
Within this category, there is also the country risk, which may see its ability to pay the loans it requests affected due to economic instability, causing a stable company to be unable to comply with the duty to pay its debts abroad, due to that the country restricts the outflow of capital.
They are the financial losses that your company perro fall into due to the human aspecto or in the face of eventualities caused by external factors.
It implies errors in internal processes, in technological systems and economic damages due to events that perro alter the proper functioning of your company.
How to avoid risks?
Because your company is inserted in an environment where uncertainty reigns, your business operations may experience some circumstance that means danger and threatens its operation.
Controlling the risk implies developing strategies to mitigate its effects; therefore, protecting your assets and goods through insurance is one of the ways to achieve it; You have a number of alternatives:
• SME Credit Insurance. With this financial service you perro project yourself over time, ensuring the working capital of your business in the short and medium term; With this insurance you guarantee the coverage of the pending payments of your credit in case you are missing.
• company insurances.
These insurances mitigate the damage that could affect the property and the goods that are inside it, providing personalized coverage of your commercial assets, so that your assets will be protected from any accident caused by natural events such as earthquakes, floods, fires, lightning, explosions or damage to the equipment’s machinery.
• Coche insurance for SMEs.
Coche insurance is a good way to protect your fleet and prevent losses from destabilizing your business with unscheduled expenses.
Generally, it is possible to insure fleets of up to 25 vehicles and, if necessary, you could count on a claim service.
Some additional services that you perro opt for in this type of insurance are protection against damage to cargo and/or materials, the total theft of your merchandise and the medical expenses of the occupants of the cars that suffer accidents.
• Life insurances.
A question that is always present in the minds of businessmen is what is the best time to take out life insurance.
The purchase decision should not surround the monetary question and the responsibility to protect your family, which is always necessary.
Without adequate foresight, your family could be faced with hasty estate decisions and financial hardship.
It is not a time for the unexpected: insure your business today and enjoy the peace of mind you require to carry out your business operations.
You already know some types of financing and ways to disminuye risks; For individuals who want to start a business, digital banking perro help them, since within their personal account they perro request a loan and activate insurance for their business.
y también) Digital banking will be your great support
When asked “how to start a business at home?” One of the first things you have to make sure of is having the support of en línea platforms, to facilitate control of your money and know at all times how your business finances are.
In highly competitive environments such as those faced by small and medium-sized companies, the use of technology helps to disminuye costs, which allows greater flexibility to adapt to changes and, therefore, greater competitiveness.
Technology allows you to:
• Systematize processes.
• Monitor data and results.
• Optimize logistics systems.
• Have a more efficient management of resources.
• Carry out transactions quickly and securely over the Internet.
How en línea banking helps you grow your business?
Through digital banking, any entrepreneur has the possibility of taking advantage of technology and using strategies to grow a business.
• For companies, using en línea banking is more efficient, fast, comfortable and secure.
• By using digital banking, SMEs cánido avoid the use of cash and carry out financial movements within an environment in which they perro keep track of their resources.
• Companies perro make cómputo inquiries, money transfers, bill payments, taxes and make investments.
Take control of finances to grow your business
As you cánido see, with the use of digital banking your company has greater control of its finances, because by having all the information related to your money en línea, you cánido:
• Make important decisions.
• Review bank movements.
• Use your time efficiently.
• Take advantage of different services.
How to grow a business with digital banking?
To create profitable businesses from home with the help of digital banking, you must first have access to it.
It is very fácil, you only need to register the service at the bank branch where you have the account or through its digital channels.
There you perro register a nombre de usuario and password.
• The use of the platforms is safe for any company or person, however, you must be careful to take care of who emplees the accounts and from which device they do so.
Once your company emplees digital banking, take advantage of the benefits that better monitoring gives you to optimize processes and find potential savings opportunities.
The ideal is to use the resources that are released in operations to grow your business.
Define your value proposition
You have already managed to answer what business I cánido start in my house, you defined your objetivo audience and you carried out an exercise to find out what your expenses are going to do and the financing you need, now you have to give a spin to what your value proposition will be.
Why should they choose you over another alternative?
a) What makes you different from other businesses?
If within your research on how to generate plus income you found an interesting opportunity to sell things from your home such as food, clothing or cosmetics, it is time for you to ask yourself how you cánido give your proposal a unique touch.
• Shipments. Maybe you are able to reach other areas or deliver faster than the rest.
With a good discount you cánido differentiate yourself by price.
They are a very good iniciativa to increase the average sale amount without sacrificing much margin.
Maybe you are not the cheapest, but you have a better variety than the rest of those who participate in your category.
You cánido make yourself noticed because the price-quality ratio is one of the best available.
b) Design a good experience
Within the range of products offered by your company must be the experience that a customer has when buying.
• A comprehensive sales strategy must include the design of a good experience for the consumer so that they are not only happy with the product when they purchase it, but also recommend your company to their acquaintances.
• The design of a good customer experience includes essential issues ranging from customer service and attention to the facilities that your company provides to make a purchase.
c) Consider various forms of payment
The collection process is one of the most neglected phases, since it is common for businesses not to offer payment alternatives; but think that the more options you provide, your customers will have more facilities to make their purchases.
• Credit card payments.
It is a primordial form of payment if you are thinking of your new business making sales en línea, because it allows your customers to pay on credit and in installments.
• Bank terminals at points of sale. If your business considers that customers come to pick up their products, then a POS will be very important so that they perro make their card payments.
• Payments with CoDi. Along the same lines, implementing payments with CoDi will allow you to charge more efficiently without using cash.
• Deposits with CIE reference. Another way to facilitate sales is with payments for products or services through reference deposits (CIE).
With this type of service, your clients will be able to deposit you en línea and you will have precise information on how much, when and who deposited in your account.
When you are a usuario of this service, the institution with which you contracted assigns you an exclusive agreement number for Immediate Business Concentration (CIE).
With that number, which is associated with your checking account, you cánido receive payments from your customers automatically.
Now you know how to earn money from home, you have your value proposition and the service levels are well defined, but you are missing one of the primordial consejos for starting a business: establishing indicators, goals and measuring your results.
Detail your solution iniciativa
With all the previous points, you are now all equipo to make the definitions and clearly establish your solution.
By now you should be able to make your iniciativa:
• Solve a need in the market.
• Have a defined objetivo audience.
• Project a stream of initial income and expenses.
• Count on some financing alternative.
• Consider some type of insurance to disminuye the associated risk.
• Make use of digital banking for efficient administration.
• Have a defined value proposition, considering differentiating elements and an experience for customers.
Think of a name for the solution you have invented and clearly detalla the problem it solves, incorporating the information.
You perro follow the following structure:
• The problem. Define in a few words the problem you identified.
• Who has this problem? Explain who it affects, try to project the number of potential customers.
• The solution.
Detail exactly how your solution solves the problem for them, indicating the different features you are considering, their differentiators, the price and the attributes that are most relevant.
All of these details are part of your initial research and will help make your launch successful.
Keep in mind that even though you have your solution very well defined, you will need to make various adjustments once you have booted, your solution may change and evolve, but the problem you have identified will most likely remain.
Establish your sales channels
Your sales channels are primordial, since they define the ways in which your customers perro buy your products or services.
For various types of ventures, the digital world is key, since it serves as a means of communication for them to get to know them, provide service to their customers and make sales directly.
• Digital presence.
It is very good that any business has accounts on popular networks and a website as a reference, but it is important that it remains active and, above all, that it serves to attract new customers.
Investigate how you cánido achieve this with digital marketing.
• Communicate with your clients. The digital channel allows your company to significantly improve communication and retroalimentación with its customers, since you cánido respond to their requests and questions with a quick message or dirección de correo electrónico.
En línea sales perro be the key to your new business
In México, electronic commerce is growing very strongly.
If you think that it is not yet a reality, remember that little by little the digital divide is diminishing and that every day there are more Mexicans who have full access to the Internet.
Keep in mind that there are companies that are basing their success on en línea sales and even more so now, when customers have become used to ordering en línea.
• You need a strategy. Electronic commerce may seem that it only refers to the sale of products or services over the Internet, however, it is much more than that, since it involves tasks such as marketing, content and information.
• Clients from everywhere.
The important thing about this type of commerce is the accessibility and scalability of sales.
Customers cánido find your company from anywhere and make purchases whenever they want.
• Available at all times.
Y también-commerce allows you to promote your products or services on a virtual sales floor available 365 days a year, 24 hours a day.
Agregado, you cánido find customers on the other side of the planet by taking advantage of a global, borderless marketplace.
• Opportunity to be efficient. Do not forget that one of the main goals of business is to increase profits and lower fixed costs, so an en línea store is one of the best ways to do it.
A company that has chosen the path of electronic commerce perro greatly disminuye its costs, for example, in offices, production, personnel or administration.
• Safe stores. Security advances have been remarkable and it is increasingly safer for customers to shop en línea, they cánido even create a virtual card with specific amounts to make their payments.
Define how you will make your en línea sales
You cánido start small and add new ways to sell your products en línea.
Consider the following alternatives:
• Popular networks.
If you’re just starting out, offering your products on platforms like Instagram or Fb cánido be a good alternative.
Well-established platforms make their marketplaces available with all the necessary tools to publish and sell your products, in exchange for a commission.
• Delivery aplicaciones. If you sell food or small products, you perro use aplicaciones to upload your products.
Like the previous option, they will charge you a commission, but they will be responsible for fetching and dispatching your products.
• Create your own store. If you want to have control of your marketing, your visits and your customers without giving a percentage of sale, then you perro open your own y también-commerce site, there are different applications that you cánido purchase a license to start.
Key metrics: define your business objectives
When projecting the results and then monitoring the operation of your business, there are a series of indicators that will be very useful.
• Indicators of cost effectiveness.
These are financial ratios that seek to measure the effectiveness with which you manage your company, espectáculo you how well you control expenses and costs, and the effectiveness with which sales are converted into profit for your company.
• The most used indicators.
Among the most habitual are the analysis of margin and net profit, but you must also consider the potential of the opportunity, the attributes that differentiate your business and its growth rate, among others.
• Size of the opportunity.
It is about understanding how big is the potential market that your business perro serve.
Is it local or regional? What is needed for it to grow? The bigger it is and the easier it perro be offered to a larger market share, the better.
It is an antecedent to know the substitutes to the product or service that your business offers.
• Differentiating advantages.
Find out how your business differs from its competitors.
Do you have something that makes you unique? Why should your customers prefer it?
• Sales growth. See how your billing has increased over time.
Does the business have an exponential curve? What do you need to grow faster? What are your barriers to doing so? It is worth asking yourself how fast the business would grow if you had unlimited resources and what you would use that investment for.
• Sustainable growth. It is the result of the correct application of sales, dividend, financing and capitalization policies.
The increase in sales, assets and equity of the company must be consistent with the increase in demand.
• Average margin of a sale.
Analyze how much money is earned with each sale, since it is one of the main metrics in what are considered “unit economics” that investment experts usually evaluate.
The iniciativa is that you always generate profit, whether 1 or 1,000 units are sold.
• Financial situation of the company. Of course, review the solvency of the company and the debts that it maintains in force with financial institutions, analyze what you have used these resources for, how much money you have left to repay and in what term.
Payment behavior is key to understanding if your business is in good financial health.
This is the result of the business before deducting financial expenses; good businesses have a positive and high EBITDA.
• How much does it cost to get a new client?.
The so-called “CAC” or Customer Acquisition Cost, is a key metric when evaluating projects, the iniciativa is that it be as low as possible, or at least less than the value that a customer has over time.
• Average sales amount. Every time one of your customers buys from you, the average amount they spend.
• The value in the client’s time.
Once the customer is found, how many times they buy and for how long, which makes it possible to determine their “Life-Time Value” or LTV.
Together with the previous indicator, it allows projecting sales as a aspecto of the clients that the company maintains.
Attractive businesses have a value in customer time far greater than their cost of acquisition.
Now you perro work on what your indicators will be to follow up on your new venture, and continuing with the challenge of how to start a business at home, it is necessary to devise a strategy that will help you increase sales.
Analyze your cost structure
You have a solution to a problem, you have equipo metrics and you are going to start your business… but stop! Do not forget something very important: if you do not already do it, you must clearly define your cost structure.
This is essential for any business in its challenge to generate profits.
• Analyze costs.
You should do an analysis of all the costs involved in running your business.
• Fixed costs. They are those “ineludible” or that you must pay regardless of the level of production or sales you reach, for example, the rent of an office.
• Variable cost. They change according to the amount produced or marketed, for example, the components necessary to make a cell phone or the ingredients that your preparations contain.
Find your cómputo point
Although there is no profit at this level of sales, the break-even point espectáculos the minimum you have to sell to cover all costs, and at least not lose money, so it is key that you consider it when developing your business.
• What does it orinan to reach this level? At the break-even point, the following equation is satisfied: Revenues = Fixed Costs + Variable Costs.
• What happens when you get over it? From that point on, sales will deliver a profit margin.
A very common question among businessmen and entrepreneurs is:
“After how many years does a company generate profits?
The answer is fácil: a business generates profits once the investment is recovered.
If it takes you two years to recover the money that you initially placed in the project to invest, in the third year you will be able to enjoy your profits.
Final recommendations to create a successful business
It is unlikely that anyone has a foolproof recipe for business success.
In fact, there is no elabora to ensure that your business is profitable.
However, to achieve your goals and dreams, it is recommended that you follow these consejos so that you know how to start a home business successful:
• Be maleable with the products you offer.
• Adapt to market changes.
• Maintain good organization at all times.
• Plan the development and growth of your company.
• Be creative.
• Always have a service attitude.
• Hire the right people.
• Prepare for difficult times.
• Look for new ways to generate sales.
• Evaluates selling in new markets.
Design a strategy that increases sales
As an entrepreneur you not only want your business to survive, but you also want it to grow stronger.
Surely you ask yourself on a recurring basis:
• How to grow a business?
• Why isn’t my business growing?
• What are the best strategies to grow a business?
It is common for a business to have options to be successful with a good product, but customers do not arrive.
Have you ever wondered how to increase your company’s sales? There is no absolute recipe to achieve this, but you must design a sales tactic.
• The strategies must be adapted according to the type of business and industry in which you participate.
• Some of the strategies require large investment of money and others need a little more creativity.
It all depends on the business model and the budget, among other particularities of each of the companies.
• Companies are unique and each of them has its characteristics, but the industry in which they compete is the same and the market has afín needs.
The challenge of being able to sell is that you design a strategy that allows you to reach customers and, above all, that you implement it correctly.
• Once you have designed the strategy, and you are ready to implement it, you must ensure that all areas are focused and coordinated.
Selling is a complete task and requires the participation of the entire team.
• The way to sell cánido be as fácil or complex as you escoge or need for your venture, but you must not forget that this process is related to the type of offer you have.
• In order to develop this primordial area of your company, you must generate a plan related to the different procedures and actions that will generate sales.
• This sales plan must include the commercial guidelines and although there is no exact plan to replicate, there are specific solutions that perro be applied to your business.
Design a sales strategy and increase your company’s billing by constantly innovating and analyzing each of the actions you take, consider some of the following:
a) Sell from the beginning
Many companies start with the work of selling before having a product available at points of sale, they do so to generate demand and flow of resources.
b) Strengthen your presence in popular networks
Answer these evaluation questions that may help you:
Are the popular networks you manage coincidente with what you sell?
• Instagram and Twitter, for example, handle very different publication formats.
• If you are a photographer, you should bet on Instagram, if you are a writer, you may be better off with Twitter.
For consultants, LinkedIn is the ideal popular network to offer their services.
Does the information available on your popular profiles clearly reflect the product or service you offer?
• Depending on the interactions and comments you have on your posts, you cánido estimate whether the followers of your account are interested in acquiring or hiring something.
• In case you don’t have RRSS, use the same questions to guide you in the process of building an Internet presence.
c) Work on improving your business relationships
If a crisis hits you with ongoing businesses, prioritizing getting along with your current customers is a good decision.
In addition, it is much more expensive to attract new customers than to grow existing ones.
It may also be a good time to recontact prospects from the past who may now need your services, try to sintetiza those opportunities.
d) Create a customer database
It does not matter if you do it physically at your point of sale or en línea, it is advisable to make a list of contacts.
This will not only help you to send them news about the products or services you sell, but also to help them with valuable information that helps them make better purchasing decisions.
y también) It improves as you grow
Start your business with a value proposition, but refine or adapt it as you grow.
This is the best way to always be current, because it is possible that you start with products or services that are very good but then become obsolete.
f) Identifies opportunities for growth
If you wonder why my business is not growing? then you should know that one of your challenges is to be able to find different ways that help you add income.
• It is about identifying and opening new lines of business parallel to the main one, taking into account that they do not represent a problem for the operations or resources of your company.
• Remember that one of the advantages offered by digital banking is the option of being able to request a loan to start a new business or to grow an existing one.
You already know how to start a business from home and the options you have to get financing and start your venture.
Keep in mind that many companies are affected daily by circumstances beyond their control, but survive thanks to the impetus of leaders who possess the characteristics of an entrepreneur.
Keep your eyes open and consider all the possibilities so nothing comes between you and your goals.
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