There are two ways you can go about deciding what business you may want to launch: Take note of your skills and see if you can build a business around one of them, or do some research and see where there is an opportunity for business.
"I don't like when people just come up with random ideas," Patricio said. "Typically, a small business owner will say, 'But people need this,' but it doesn't matter what they need, it's about what people want to pay for."
So if you have a product or service in mind, if the research reveals there is no market or demand for it and it won't make a profit, you have to scrap the idea and think of something else.
Patricio said people want to start a business based on what they're passionate about, but the danger is that it isn't always a viable business.
"Can you make money from it? That's the question," he said. "Whether you love something or not, it's nice, but sometimes passion clouds your idea."
Patricio said the ideal businesses to run from home are service-oriented, like a consulting, a training or interior designing, and today's technology easily enables people to do this.
"You don't need an office, you can have your employees on Skype so you can speak to them and message them, and you can all be working from home," he said.
After you've done your market research and found potential paying customers, drawing up a business plan is the next step, Patricio said. This displays your idea clearly on paper, the numbers are there, there is a marketing plan and it shows commitment.
"Even though we don't believe those numbers most of the time, the fact that you've written it down, you've checked the viability of the idea, it's a good starting point," he said.
Patricio then suggested taking your plan to three or four business owners, who aren't family and who will be honest with you about your idea and ask the hard questions.
Now that you have a viable idea, you have to make sure you have the right mindset in preparation for running a home-based business. Patricio said two very important qualities to have are being good at selling yourself and perseverance.
"You'll realize very quickly once you leave a big company, no one returns calls or emails, no one even remembers who you are as soon as you start your own business, so you have to understand these challenges," Patricio said.
In terms of marketing, Patricio said people expect you to have your own website, but realistically, you could be on Facebook or Twitter and not have a website at all.
"I prefer social media to a website. The only problem is if you don't have a website it's like not having a business card and people may think, 'Well she can't be that serious she doesn't even have a business card,'" he said.
There is some paperwork you have to do when starting your own business, like registering your corporation and getting insurance. Patricio said these are easy steps, but don't even think about them until you have customers.
"A lot of small business owners in Canada, we don't even register our businesses, what we do is start off as sole proprietors, which is 100 per cent legal, then as soon as we see the business getting a bit of traction our accountant will usually say incorporate," he said.
After you are established and working at home, Patricio said you need to remember you are still working and you have to behave as such. You still have to act as a professional and develop a routine.
"You have to have good self-discipline to stay on task and be organized," he said. "This includes daily to-do lists, systems and processes, ways of doing things, or it will be chaos otherwise."
Patricio said you must set regular hours and have a uniform that's not pyjamas. Also you need a dedicated office space so the kids are not coming in and out or the dog isn't barking while you are on an important call.
Patricio suggested setting boundaries and guidelines and keep work and home life as separate as possible. Have a conversation with your friends and family so they understand what's expected of them when you are working.
Most importantly, be realistic. Patricio said while many home businesses are successful, many also fail, with the main reason being not enough profit.
"Opening the business is the easy part - staying in business is the difficult part,' he said.
"The first three years in business you are not going to make a profit, there's the reality."
A good rule to follow, Patricio said, is if you're not making money within three to five years, you should consider changing or refocusing the business, or go back to work.
Source http://www.insidetoronto.com/
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