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Running a home-based business in a world where the internet is very affordable and social media is free means fighting competition. Many small-scale businesses leverage this availability of resources and look to tweak things in their favour. Ultimately, like every other business, your home business also needs to scale up. Of course, this is easier said than done.
Scaling up requires some major changes within the setup, and taking the first step is always difficult. If you are selling products on Facebook marketplace, Instagram, or other portals, then you need fundamental overhauls to the extent of making pathbreaking decisions.
To begin with, here are the three big leaps you can take to scale the home-based business.
1. Get registered and stay compliant
Most home-based businesses yearn to be successful but often fail to take the first step properly. The problem with this nature of business is that you often find yourself working in a silo and think your small business will remain so till eternity. But, that’s not the way to grow.
The first step towards growing is by accepting that your business needs a legal identity. No matter how small or big, registering your business entity has legal and mental benefits. You start thinking big the moment you start to bill on behalf of your business.
There are a lot of options, to begin with:
– If you see true growth potential like running a franchise model, expanding to multiple cities, or even turning your business into a big venture, then go with private limited company registration
– When there are two or more partners as business owners, then you can choose from either partnership business registration with a deed or Limited Liability Partnership. LLP is preferable when the partners want to limit the liability and save themselves from running a personal risk
– It is important to know the difference between a private limited company and a partnership firm that goes beyond just the company name
– Solopreneurs can choose from business structures like One Person Company and Sole Proprietorship
Moreover, your business structure will also push you to act like a business owner. Start managing your business like a brand by staying up-do-date with compliances like paying taxes, filing returns on behalf of your business and creating a reputation in the market.
You can also take a step ahead with trademark registration and start using TM mark in front of your business name. Such a symbol by itself denotes your growth-orientation to potential customers who will put their faith in you.
2. Take it online
The best way to grow is to reach out to as many people as you can. Some people argue that home-based businesses might not require a website since its target market is limited to a particular city or a town. On the contrary, perhaps for this very reason, your business deserves a website. Creating a website is just not about spreading the reach, it is also about;
– Extending yourself to reach customers
– Communicate better with prospective buyers
– Sell and accept money online after choosing a secured payment gateway
– Leverage low-cost local paid ads on social media to reach the target group
For the last point mentioned above, you need to create a buyer persona and accordingly create the content. Since your competition is relatively low on the web, you have unmatched leverage. Here’s How To Build A Free Website For Your Business.
3. Determine profitability
Scaling up a home-based business means evaluating each step before taking it. And one of the most basic steps is to determine the profitability of the business as you venture out on a growth-based journey.
You may have great talent and enough skills to demonstrate it. But what if people are not willing to pay for it? You will have to ask tough questions that help you gauge your way up. Sure, you are looking for growth, but how much progress has your business done since it started? Know if you can maximize the profit with the same or a little less revenue growth.
For instance, let’s say you make cupcakes for Rs.35 and sell them at Rs.50. And if you are selling 100 such cupcakes on an average every day, it means, you are making Rs.1,500 a day for yourself. Now, making Rs 2,500 a day is something that looks like an achievable goal, but you will have to dwell on the “how” part.
It leaves you with these two crucial questions
– “Are people willing to pay my asking price for the offered product or service?”
– “Can I beef-up my profit by cutting the cost of making strategic changes in the offerings that facilitates business growth?”
Understand that many businesses have a hard time going beyond the breakeven point. And if you have already seen the brighter side, congratulations!
You are on the growth trajectory already and now, the journey gets tougher than before. Because now, you not only have to care for growth but be cautious of not losing momentum (making losses) as well.
Set minimum income requirements and strive for efficiency – be it marketing, creating the product/services and CX. Brew ideas that enable growth chances and work on them with perseverance. There isn’t any other modern way yet, unfortunately.
Taking these three bold steps one after the other will offer the much-needed boost to your business. Make sure you plan each of these leaps diligently so you can achieve your objectives and it does not turn counterproductive. As with life, anything in business that involves a higher amount of risk will reap you great rewards.
Also, keep working on improving yourself and gather experience that helps to make decisions for growth. Being a home-based business owner, staying motivated is also crucial, especially in terms of discipline and consistency.
Do you have any home-based business stories to share or queries? Why not share your thoughts in the comments section below?