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Perception and the Ideation Process

Because perception is reality; the most critical element of becoming an innovative organization is what occurs after good ideas have come about and have started down the path to business fruition.

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Home Based Business

Home based businesses are the core of micro-enterprises.

To encourage the proper development of home based businesses, The Entrepreneur’s Advisor will be starting a free forum to answer questions. Look for upcoming notices.

2 Comments on “Home Based Business

Stuart W Smith
February 8, 2010 at 8:39 am

The first thing to realize is that you are faced with a good problem in that you are at a stage where you have business where many others do not. The real question is what are you seeking? A lifestyle business or the potential for a full blown tutoring company. For a growth oriented company some things to consider in this situation are.

1. Cost of commercial facilities in relation to your cash flow.
– rent, utilities, insurance
– day care for your 3 year old son
– how long are the contracts within your building for tutorials. Travel is limited now but when they expire you will travel more.

2. You did not mention if you a sole proprietor or corporation. The hiring of just a single employee requires you to change your legal structure if you are a sole proprietor. You need to be very careful about hiring people as contractors (1099’s).

3. Business expansion will require additional marketing expense and time. Although much marketing can be organic (low cost), there is an administrative cost involved in expanding such as billing and receivables, scheduling, etc…

4. What are the options for day care for your 3 year old? As mentioned above, the issue with a distraction does not go away just by moving to a commercial premises. Seperate the two issues.

5. Before you move into a commercial environment, re-work your business plan to make sure it makes economical sense. Know where your breakeven is and how long it will take you to get there. build your financial model from the ground up which means identify how new sales will occur and the cost to obtain each sale. never assume a % or a number. Once done reduce your revenue expectations in half and double your expenses.

In a nutshell, expanding will require professionalization on all levels, leave nothing to chance.

Stuart

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sruchi singla
February 7, 2010 at 7:38 pm

Hello,
We are into tutoring school going kids from grade 3- grade 10. We also have some programmes like fast mathematics, or only sunday tests schemes..etc..

I am currently running my business from my home. I have a three year old son who at times becomes a distraction. Due which my business has suffered. We have a very unique technique which no one is using here. We already have got some 3-4 tutorials in vicinity here in the commercial premises. I was also thinking of to shift to a commerical premises to further expand my business. As working from home i am not able to manage more than 6-7 students.

Kindly guide me shall i plan to work from home only or it seriously makes a sense shifting to a commercial premises and doing things in a more professional and unique way.

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