Create a Budget For Your Home Based Business

Reading message boards, one of the things I see regularly is “I don’t have any money to invest” or “I have very little money to invest”.

I believe you need to create a budget before you ever begin a business. Without a budget, you are setting yourself up for failure.

I know you can find ads that say “no money required” or “free to join”. However, money can only be made if something somewhere is bought and sold. In order for you to buy and sell whatever it is you are now in business with will require money to invest.

To begin with, whatever you are selling, you need to try yourself. While it might be free to “join a program”, there will be a fee to try the service or product.

Now consider the actual business aspect of your venture. There are fees to purchase a domain and fees to host your domain. “But the program gives me a free website” you might be thinking. There’s not a lot you can do with an affiliate site URL. If you want to advertise, write articles etc, you’re going to need your own domain. Free websites give you what you pay for. They are loaded with ads and try to find 10 people, just 10 people who have made purchases from a free web site.

To put up a website will also take an investment. You’ll either need to purchase a site building program or you’ll need to hire someone to build the site for you. Either way, this too is a financial investment.

What about marketing? How are you going to market whatever it is you are selling? Again, you might be thinking “but I know you can advertise for free”. Yes, there are forms of advertising that are free, such as article marketing, plug boards and message boards. However, these methods of marketing need to be combined with paid advertising. You’ll need to place classified ads, place banner ads and put ads into ezines. This all costs money.

Are there any supplies you’ll need? Often folks will buy a software program to help keep track of inventory, or help them keep track of customers. Sometimes folks will buy an accounting program to help them keep track of money in and money out. What about your work space? Do you have everything you need at home for your work space?

Often in business, you’ll need a long distance service for your phone. I use a combination of the free long distance on my cell phone and a phone card that I pay only a couple of cents per minute on.

I believe one of the first things you’ll need when considering a home business is a realistic budget of how much this business will cost to get off the ground. There really is no such thing as a “free business”.

by:Audrey Okaneko