Home Business Questions and Answers

I have listed some popular home business questions and answers. These are to help you to make sure you are thinking about the right key business decisions. These may also trigger other questions you may have about a home business.

home business questions

Q. Why am I starting a home business?
A. There are a number of reasons motivating an individual to start a home business. A key factor is whether your reason is strong enough to overcome the challenges of starting and operating a home business. Common reasons include financial freedom, potential for big earnings, schedule flexibility, personal fulfillment or be your own boss.

Q. What kind of business do I want?
A. You can have just about any kind of business you want. Most home business success comes from doing something you enjoy. Passionate about a hobby or personal interest? Turn it into a business. “Auntie” Ann Beiler started selling hand-rolled pretzels at a Downingtown, Pennsylvania farmer’s market in the 1980’s. Now it is a worldwide business.

Q. Who is my ideal customer?
A. Consider the demographic characteristics of your ideal customer. (Demographics are the study of a population based on factors such as age, race, sex, economic status, level of education, income level and employment, etc.) The ideal customer is one with money! But that factor is much too large. Who your ideal customer is in part dependent upon what products or services you want to sell.

Q. What products or services will my business provide?
A. You want to provide products or services that will solve a customer’s problem or fulfill a customer need. They come to your business because they want your help. They are not coming there for you to “sell” them. You are offering your customers results.

Q. What makes my business idea and the products or services I will provide different from others in the market?
A. Hint: It is not the price. Provide a new perspective or idea to the table. Identify the reasons why a customer should buy from you rather than your competition. Customers want solutions to their problems. The solutions should provide value to the customer.

Q. Who is my competition?
A. Anyone or any company that provides similar products and services. A good example is my former tax practice. As a sole proprietor, my competition consisted of the large tax preparation chains like HR Block and other individual tax preparers. To compete against both, I offered “in-home” tax services to make it more convenient for my clients.

Q. Do I have the time and money needed to get my business started?
A. Before starting a home business, you must consider start-up costs and recurring expenses and the impact on your current financial status. Do you have enough money to pay bills and the necessities of life? Consider the time factor involved in starting a business. Assess your daily routines and demands on your time from family, friends, work and leisure. Assess your ability to adjust or change your schedule.

Q. How long do I have until I start making a profit?
A. How long depends upon your cash flow and how much cash reserves you have. Creating a personal budget taking into consideration projected business expenses can help determine how long you have before making a profit. How long may also be determined by how willing you are to borrow money and whether you have sources.

Q. What is an Affiliate Program?
A. An affiliate program is a marketing program where you receive commissions for helping a company (such as Amazon) generate sales. The commission percentage paid is company specific and usually determined by the price of the product or how “easy” it is to sell (one-time buys or repeat sales).

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6 thoughts on “Home Business Questions and Answers

  1. Hey, I really enjoyed your article and found it very informative.

    It’s a really good idea to have a list of questions that can help someone make the decision if they want a home business.

    I really liked how you broke it up and it’s almost like a mini business plan.

    I really like your website as well, will definitely bookmark it and read more.
    Rose

  2. Hi Glen

    I like this Q & A regarding the essentials of having a home business. A lot of people would rush to find a way to get out of their 9 to 5 job, yet don’t plan ahead of what the risks may be in doing so. I think that people should take this Q & A into consideration.

    I especially like where you asked “Do I have the time and money needed…”. This ties in with what I’ve talked about above. People would need to know what they’re getting into when they do start an online business. It can be overwhelming to have a job and business at the same time to make ends meet.

    People must put in some considerable time and money into the business to be lucrative and thrive. Once this has been accomplished which takes patience and months, they can finally quit the rat-race called the 9 to 5 job.

    Overall, I feel that this post is informative and I’ll refer people to come here.

  3. Hey Glen,

    Great article! There is some awesome information in here about starting your own business. This is a subject I am very interested in knowing more about. Thank you for your insights.

    It is good to see that you touched on the financial equation of the business. I know from my own journey in business owning, start up expenses and “boot-strapping” are big questions from my readers.

    I think it benefits anyone to take another look at their business goals and decide what the right size of personal investment is right for them, cheers
    -Tim Owen

    • Thanks for the comment, Tim. The financial part is critical. I don’t believe that most people should take on debt to start a home business. Especially, if it impacts the critical household budget.

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