Success Factors your home-based business needs to succeed and grow

Do you want to create additional income?  You’re probably well aware that there are others like yourself who are seeking the same thing.  There are so many options available, but basically only four different kinds of business models, each having its own set of pros and cons. 
 
Conventional employers offer commissions or wages and small private businesses typically are all based on exchanging your time for ‘transactional’ revenue.  Neither of those allows much of a chance for you to ‘leverage’ or ‘scale’ your business. 
 
Franchise ownership typically requires substantial cash investments and expertise that most people do not have. 
 
That leaves a host of business opportunities that are very popular offering independent status as a ‘representative’ or ‘agent’ under the broad category of ‘marketing’ and requiring some degree of team building and leadership.

There are many questionable and unrealistic opportunities being pitched these days.  One of your first priorities should be to work with a team that has carefully investigated many of the various business models that are out there.  You should have a clear ‘roadmap’ to find and work with a successful business that brings proven value to the marketplace, fits one of your areas of interest and has developed a proven program for on-the-job training so you can earn income while you learn the strategies for succeeding at your business.

You’ll need to learn how to increase the number of people who say yes to becoming a life-long customer and/or decide to work with you as a business partner. That means you also need to find the ingredients necessary to have a sustainable product line that will generate passive income for a life-long business. Then there’s the most important question: What role does value play in a product line with a business attached to it and how do you spot it?

When it’s appropriate to talk with a business person about the search that many people are doing right now to find a reliable business opportunity, they will appreciate having this list of Success Factors. The logical question to ask next, after a thoughtful review of these 12 points, is my question at the end.

1. Company track record.  How long has the company been in business? What are the company’s annual sales statistics each year since they began their business? Does the company print average income statistics for business builders? It should and you should ask for them. Proof of long term sales, success and growth is critical in choosing any business.

2. Financially sound. Does the company have outstanding debt? Joining a company that is debt free is highly recommend to lessen any risk.

3. Strong management team. What are the backgrounds and credentials of the management team? Look to join a company run with integrity and strong leadership.

4. Unique consumable products. Are the company’s products products that people actually need, use, run out of and repurchase month after month? Do the products have any trademarks or patents allowing for exclusive rights (meaning no other company can copy them)? If the products are not consumable, meaning something that a person would only buy once, then that is a business that will not be viable long term. If the products are consumable but not necessarily a genuine need, that will reduce your chance for long term success. Products that are truly needed and consumed monthly make for a solid business model.

5. Wide market appeal. Are the products something everyone needs and uses? If the products are specific for a certain gender, age group or body size for example, you reduce your market potential.  It’s not something for everyone.  If you choose a narrow niche product, you must ask yourself if you are comfortable excluding customers that are not attracted to that niche.

6. Competitive prices. Are the products comparable in price or less expensive than the competition? If they are too expensive, this is not a business that will produce ongoing great results.  What will you do when you find competitors with equally high quality products that are reputably offered for a lot less cost?  You may be loyal out of sheer stubbornness but your customers will run to the competitors.

7. High customer reorder rate. Does the company share its reorder rate? This means one thing. How many customers that purchased from the company last month, reorder again the following month? If the re-order rate is low, the business will not be viable as new customers simply replace your old customers producing no real growth or a secure, residual income. Know that it will be difficult to find this information from most companies directly.  Don’t make a decision until you know this important piece of the business model you are considering joining.

8. Low initial investment. If the cost to join or start your business is too high it makes for more risk and difficulty in attracting customers and business partners.  If a start up fee is high and a ‘customer acquisition bonus’ is also high, beware of what might be a “Ponzi scheme.”  Many so-called ‘ground-floor opportunities’ have attracted many hopeful participants, only to tragically end in the loss of much time and money for the vast majority of eager business partners.

9. Low monthly requirement. If there is a high monthly requirement, customers and business builders may end up storing an inventory of products they do not need. If there is a low monthly product purchase requirement, then customers are getting what they need for personal use each month.  From a business standpoint, you know customers are purchasing each month.  That creates the freedom of true residual income.

10. Rewards for leadership development. Does the company reward you for helping others in your business succeed? If there is any way the company could remove business building partners from your business because of their success, be very careful about joining. There should never be potential for you to lose great partners.  Also, be sure that you receive a reward for the business created by all of the customers that you personally bring to the company.  There are many companies that cleverly take away productive customers and business partners from hard working people just like you.

11. Risk-free – Is everything 100% guaranteed? If not, could you seriously advise someone to join you?  Be sure the guarantee is long enough to adequately test-drive the product. Check to see how the company handles returns and refunds. You will be so much more satisfied with your company when you can confidently tell your prospective customers that you know from personal experience about their excellent customer service and refund policy.

12. Anyone can be successful.Is the business plan set up for anyone to be successful at any time? If it’s a company that says Ground floor opportunity, or Get in Now, be wary. If only the people who join at the beginning can be successful, then eventually people will get hurt.

The only real question after considering this list is this:
“which one of these factors would you take off the list if you were going to seriously consider working with the company?”
If anyone seeing this list knows someone they care about is considering working with a company as an independent representative, they might be wise to consider: “how does that company measure up?”  If we are honest with ourselves, nothing can match the conviction of ‘certainty’ that is backed up by verifiable data and experience.  All the above points are relevant particularly to the one who has a long term commitment in mind.  That’s why we should be just as eager to ‘prove all things’ in this part of life as we should be in any other.

If you are serious about researching further on this topic in preparation for making a decision about where to invest your valuable time, be sure to contact me at barbara@hayseedscreative.com or visit   for more information.

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