Start your own business

What do Apple, Hershey Chocolate, and the Ford Motor Company have in common? They all started out as home-based businesses.

The Ideas Book: 175+ Great Home Based Business Ideas is the first in a series of new guides launched by home-based business owner, Sophie Andrews. Sophie intention is to inspire would-be entrepreneurs to consider the world of self employment and give them the ability to know just what they’re getting into.

Home-based businesses are an important sector of the Australian business community, with over a million people operating a business at or from home. It is estimated that over two thirds of all small businesses are home based.  In Australia there are oodles of businesses which started out as home-based businesses run by “mumpreneurs”, including Sophie Andrews’ own Accounts Studio and Space4.com.au; Essential Baby of course; Pipduck designer wellies and fashion importers; Marina J yogawear; Ere Perez Natural Cosmetics; Melobaby;  Flushed Cheeks; Autochic.com.au and PASH Parties.

Home based businesses can vary hugely from care services to calligraphy, desktop publishing to doggy fashion, and personal shopping to party plan plus a host of online businesses. The fact is that today’s technology and telecommunications mean that there are very few businesses that can’t be home-based, so the world is the entrepreneurial mum’s oyster, says Sophie.

“Home based businesses are perfect for Mums. Although it’s initially a hard slog getting a business set up, the benefits are great: More time to spend with the kids before and after school; flexible hours; personal and financial independence; no office politics and greater fulfilment. But it’s a big step and insufficient knowledge, ideas, information or just confidence in your own ability to run a business means that most of the time, the leap just looks too great”.

“My book aims to provide people with a basic understanding of each type of listed business, to help them find one that is the perfect fit for their personality, interests, circumstance, and budget. The books also give people enough basic information about the realities of running a business that they’ll feel more prepared and confident to make the transition”.

For example – a great idea for mums is Party Plan. Australian and international companies like PASH Parties, Tupperware and Avon have created a direct selling market in Australia alone of over $1.3billion, made up of companies comprising thousands of home based, self employed party planners, also known as “agents” or “consultants”, most of whom are mums.

PARTY PLAN
A party plan business is a marketing system involving agents who host parties in order to sell products. You can either become a party plan agent and sell a wide range of goods to your family, friends and associates or you can set up your own party business and have agents working for you.

This first is a great way to make money part-time while you are still employed, or to make extra money if you are a stay-at-home mum. However, if you want to make more money and start a full-time home based business, then establishing your own party plan business is the way to go. There are many different kinds of products that can be sold this way including jewellery, kitchenware, perfumes, designer clothing, accessories, books, DVDs, CDs, underwear, cosmetics, giftware and kids educational products.

GETTING STARTED
Before you get started, decide whether you want to become an agent or set up your own business. If you want to become an agent, choose a product or products that you think you would enjoy selling and enrol with the business that sells them. You will be given basic training and a starter pack of demonstration products which you will have to pay for. You will be encouraged to make a list of people you know and shown how to plan a party, demonstrate your products and take orders. You will probably earn a straight commission on your sales and may be given free products if you reach a specific target.

If you want to set up your own party plan business, it might be a good idea to start off as an agent to gain experience and an understanding of how this type of business works. It will also give you good insight into the challenges faced by agents. Before you begin, do some research to find a reasonably priced supplier of goods you think will sell well and that your agents will enjoy selling. Try to find new, talented young fashion or jewellery designers and amazing new products being made by stay at home mums or small businesses. Go to craft markets and trade fairs. Scout for potential suppliers who would benefit greatly from marketing their products in this way.

Put together a pricing structure for each product, with mark ups to cover your costs (delivery charges, printing and advertising costs), agents’ commission, plus your profit margin. Create a catalogue and price list and get it printed. Place adverts in local newspapers or business opportunity magazines, calling for agents to sell your products. Interview each applicant and select those who have excellent references, are well groomed, friendly and confident and seem reliable, honest and enthusiastic. Make sure you only select one agent in a given geographical area.

Provide them with basic training on how to sell your products and organise their parties and demonstrations. Have order forms printed and think of creative incentive schemes to boost sales and keep your agents happy. As your business grows, host regular get-togethers, training seminars and prize-givings to make your agents feel valued and a part of your business. Your agents are after all the backbone of your business.

The Ideas Book eGuides are available online. The guides contains over 150 business ideas from creative pursuits (photography & cake decorating) through to ebay stores and tender researchers.

Discuss home-based businesses in our dedicated forum here.