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Women Business Owners Association

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A GOOD INVESTMENT ? I am the Leader of this business and am responsible to see that the business is treated and evaluated on the same basis as any business investment I might make, both in terms of time and money invested. I may have paid managers and staff to perform some or even all of the day-to-day tasks, but ensuring an adequate return on investment (blood, sweat and money) is my responsibility and my responsibility alone.

ACHIEVING SECURITY/ROI ? I recognize that there are two components of an adequate return: First, time invested must be compensated through salary, benefits and perks; AND, money invested must be guaranteed a fair rate of return plus a premium for the level of risk assumed (by operating a small business ? usually 3-5% over prime). Adequate returns do not just happen; they are achieved through planning and action. This commitment involves setting realistic, quantifiable goals; taking the steps necessary to see to it that those goals are achieved; that results are measured and meet expectations; that we celebrate our victories; and, that we adapt, as needed, along the way.

IT'S A BUSINESS ? I am responsible to ensure that the business I have invested in has a real business and community purpose. This means: I must be realistic about not throwing good money after bad; about separating real business activity from my own ego gratification; and about assuring at least a baseline of security for myself and those who depend on this business by taking prudent risks.

I am responsible to the people who work in my business. This involves: establishing organizational goals; providing direction about their responsibilities in meeting these goals; setting standards of performance; and providing job performance feedback. This organized approach frees employees to perform effectively because it assures them that their positions are not held capriciously at my whim and that their paychecks are not constantly in jeopardy. This approach also facilitates identifying organizational successes and potential roadblocks. In a world of rapid change, just a little perceived security goes a long way.

Finally, I am responsible to myself, my family and my other stakeholders to engage in an active program of succession planning. Timely, thorough succession planning can facilitate a smooth transition when the day comes that I determine that: the business is no longer viable; I have personally had enough of it; or, it has just become time for me to step aside.

Women Business Owners Association

There is so much more to starting and running a home based business than simply throwing open your doors to a hopefully adoring public who will be clamoring to purchase whatever good or service you are offering. As a matter of fact, in addition to the obvious personality considerations you need to take, there are also financial considerations home business owners must face.

First and foremost, do you have the money you will need to get started? Each and every business requires some startup cash. Granted, some are a lot cheaper to start than others, and there are several home based businesses you can literally start with less than $100, but if you do not even have the $100, what good will be your idea?

Secondly, think long and hard before you rely on dubious sources of funding for your business. Home owners are too quick to draw from their home's equity and find that when the housing market takes a bit of a dive, they may indeed be upside down in their properties since the equity declined in conjunction with the overall value of their homes. In the same vein, those who may have relied on credit cards to fund their business will be in for a surprise when their payment fails to reach the creditor on time and suddenly their interest rates are going through the roof. This makes for an especially deadly combination when high interest is added to a high limit card that is more or less maxed out.

Even if financing is not a problem, consider how immune you are to market fluctuations. Will a late payment from a customer present a seemingly insurmountable problem? What will you do about the customer who is unable to meet her or his financial obligations to you and declares bankruptcy? If there are goods to be repossessed you may be able to recover at least some equity, but by and large they will be used and no longer useable. If you provide a service, on the other hand, the odds are good that all of that work and time spent will remain unrewarded. Are you fiscally able to sustain your business even if one or more customers cannot or will not pay their bills?

Last but not least, do you have adequate healthcare insurance? This may appear an odd question, but if you consider that entrepreneurs who work alone at a home business do not have a stand in, the need to have some kind of disability insurance in addition to healthcare coverage only makes sense. If you cannot do the job, nobody will step up to stand in for you and you will lose whatever revenue you might have earned during that particular day. Some insurance plans allow for that eventuality, yet they are costly and need to be well planned!

Sitting down with a financial planner and also a seasoned insurance agent to discuss your options, plan for pitfalls, and also protect your personal assets is usually a wise choice before you even throw open the doors and greet your very first customer!

Copyright ? Jim Sperlich

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About Author

Both John J Reddish & Jim Sperlich are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

John J Reddish has sinced written about articles on various topics from Sales Training, Finances. John Reddish works with and speaks to leaders who want to master growth, transition and succession, helping them to get results faster, less painfully and in ways that work for them. Author, speaker, consultant and mentor, John is a member of NSA. For boo. John J Reddish's top article generates over 4400 views. to your Favourites.

Jim Sperlich has sinced written about articles on various topics from Work From Home, Affiliate Programs and Modelling. To find the best legitimate home based business opportunities and ideas so you can work at home visit:

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