An Introduction to Locating Your Business Model At Home

The home based business model is a popular option for many people who are starting out in business. Your home is a great place to start and may be a viable option for you, until you become more established, especially if you provide a service.

But there are some important things you should realize before beginning a business at home. Firstly there is a difference between operating a business “from” home and “at” home.

A business that operates “from” home means the owner does most of their work away from the home office and at a clients premises. Think of plumbers, electricians, consultants as examples.

A business that operates “at” home means the owner does most of their work in the home office. Think of computer programmers, freelancer writers, internet marketers as examples.

When locating your business at home, regardless of whether you work “at” or “from” home you’ll need to consider the following advantages and disadvantages.

Advantages of a home based business model include: saving money on commuting, more control of the hours you work and the environment you work in, low start-up cost and risk, freedom to grow your business slowly (so you can still work even part-time to have income coming through), rent and expenses are tax deductions.

The downsides to working from home include: distraction during the day from family and friends, your business activity may conflict with home life (in other words you might not switch off from work and this causes problems at home).

You may also need to find out whether you need a licence or permit to conduct a business from your home. In addition you will need to look into the types of insurance needed such as contents insurance, public liability etc.

Finally there is the equipment and space. You need to assess whether you home is right for running a business. A spare room allows you to switch easily from work to home simply by closing the door or leaving the shed. Your separate room should be big enough to have equipment, furniture and stationary.

Your business may need a phone line and will definitely need internet connection. So a second line may need to be installed. Plus like any workplace you need to assess your business for hazards and make sure you provide a safe working environment, even if it is just for yourself.

If you follow the above then you will have your home based business off and running in no time.

How to Become a Business Analyst in Top Management

A business analyst is a person who analyzes the function and structure of an organization, to be able to come up with ways to fix the organization’s problems.

In the field of information technology, a business analyst is going to evaluate the organization’s business structure to determine how it integrates with modern technology. The idea is always to establish the organization’s business requirements or objectives, and subsequently improve the efficiency of IT in meeting those requirements / objectives.

Listed here are some of the necessary skills you could possibly find outlined as a business analyst:

Be Analytic
A business analyst needs to be extremely detail-oriented. You must have good analytical skills to be able to understand the different business attributes. You must understand what planning, documentation and assessment techniques or methodologies to utilize. Sharpen your investigative skills to be able to diagnose business system issues and come up with effective solutions.

Make sure that you have top interactive skills.
Different interactive skills like listening, facilitating, interviewing, and documentation skills are a necessity. You should be capable of explaining both technological and business designs to a wide audience (technical as well as non-technical).

You should be distinct, concise and tactful. You should possess great negotiation skills. In fact, part of your job would be to persuade both the leadership of the organization and the employees to accept your plans.

Be well competent in business skills.
Relating to the business side, a business analyst should become aware of strategic planning, business enhancement methodologies, case improvement and business writing.

Enhance your management skills.
A business analyst needs to be adept at decision-making, time supervision and organizational skills. You should have a working expertise in project management approaches and tools.

Stay current with technical skills.
On the technological side, you must have a working comprehension of computer hardware and software employed in the field. If you happen to be on the more technological side of the business, you might be required to be familiar with information technology principles and guidelines, engineering systems, modeling methods, technical writing as well as others.

Have high interpersonal skills.
To be in a position to get the cooperation of all of the levels of the organization, outstanding interpersonal skills are essential. You must be prepared to work with different people and bring them jointly towards a common purpose. Some are employed in multi-cultural environments which means, sensitivity and understanding of various work approaches is as well important.

The 4 Step Guide to Planning Your Home Based Business Model

Creating a home-based business model is about scoping out just how much money the business expects to make and it’s value.

It’s important to look critically and impartially at your business model to decide whether it is worth investing your time and money in. Because it is difficult to remain impartial to the model it is a good idea to get in touch with your local SBA for advice and guidance.

There are never guarantees your business model will be a success and that is why planning is a critical step in the process. It help take you from idea to deciding on your financial commitment.

You also need to consider the return on investment you want and the risk you are willing to accept.

There are 4 stages to look at when designing your business model which we will look at now.

Stage 1 – Analyse

This stage is all about looking objectively at your model and determining it’s profitability.To do that you need to ask the following questions:

  • What is the size of the market I am entering?
  • What is my competitive advantage?
  • How much capital will I need? (if you are working from home this could also mean borrowing money to support your day-to-day living until the business picks up).
  • What are your management skills? can you manage your time and are you disciplined enough to work at home?
  • How else has tried this business model and did they fail/succeed? Why/why not?

Stage 2 – Market Scope

Once you know the market you want to serve you need to do research on the following:

  • Demand – What is the demand for your model? how big is the size of your market and what is it’s capacity for growth?
  • Supply – How will you supply your product/service? You also need to ask if this is the right time to enter into your space.
  • Network – What is the network and relationships that you have available to draw on? Which of these can you use for bargaining power?

Stage 3 – Competitors

If at this point you have decided that your business model is a good one, there is market scope for your product/service and you know what makes your model special it’s time to look at your competitors.

Start by answering these questions:

  • How is your model different to your competitors?
  • Will people buy from you? What makes you and your business special?
  • What barriers will you face?
  • Why are my competitors successful?

Stage 4 – Finances

The last stage is to assess your finances. This is where you prepare a sales forecast, estimate start-up costs and profitability, assess the financial viability of your business. At this point you may need an accountant to help you. I know when I started in business I needed this help, but once you have been through the process the first time any future businesses you will be able to assess on your own.