A Home Based Business Self Evaluation Survey

Over the past ten years I’ve spoken with hundreds of moms, dads, career
changers and retirees who are interested in launching a business from home.
Many of them have formulated business plans, conducted market research and
applied for financing and yet they have still overlooked one of the most
crucial steps in the business planning process–self evaluation.

If you’re considering the launch of a home based business, you might want to
take a moment to ask yourself a few important (and personal) questions
before taking the plunge.

1. What are my strengths?

The answer to this question will provide the foundation on which you can
build a successful business. Whether you’re a people person, a computer
geek, a number cruncher, or a craftsperson, your business should maximize
your strengths.

For instance, if you know that you enjoy cooking, consider becoming a
personal chef. If you enjoy computer work, don’t consider a sales career.
Your abilities should be the cornerstone of your business so that you enjoy
the day-to-day tasks associated with it.

It’s a simple concept yet most people never look inward when envisioning
their ideal home based business. They read or hear about another
entrepreneur reaping the rewards of working from home and want to emulate
that person without considering the differences in their abilities. Make a
list of your most marketable skills and ask yourself what you enjoy and why
you enjoy doing it. Use that information to create your ideal “job” and then
consider businesses that will maximize your talents.

2. What are my weaknesses?

If you’re going to conduct an “honest” self-evaluation, then it’s important
that you identify your weaknesses. Perhaps you’re not as disciplined as
you’d like to be or maybe you’re not the best bookkeeper. Running a business
will require you to handle a wide array of responsibilities from sales and
marketing to accounting and secretarial. If you overlook one aspect of your
business or don’t handle it efficiently, the business will suffer, or worse
yet, fail.

It helps to equate a home business to an office where there is a staff of
employees in various departments to handle specialized tasks. You, as the
home based business owner, will be responsible for running every one of
those departments. It’s not necessary to be an expert in every field.
Identify which aspects of the business you’re best equipped to handle and
which may require some assistance. Consider outsourcing those
responsibilities to an experienced professional so that you can devote more
time to the aspects of your business that you enjoy.

If you’d prefer to handle all of your business “in house” as opposed to
hiring out, there are other options available. For instance, a Board of
Advisors can offer you guidance in areas where you may not have experience.
A business course at your local university can help improve upon many
business related skills from business planning to public speaking. Computer
programs are also available which can assist with everything from
bookkeeping to graphic arts. And finally, you can consider launching your
business with a partner who has strengths in areas of business management
other than yours.

I’ve seen many very talented entrepreneurs fail in their endeavors simply
because they didn’t identify and compensate for their weaknesses.

For instance, through my Homeowner Referral Network (HRN) business, I met an
interior designer with tremendous flair and creativity yet she was terribly
unorganized and a chronic procrastinator. She knew exactly how to put
together a room, match colors and chose just the right fabrics but never
seemed to get around to it. Eventually, many of her clients got tired of
waiting and stopped using her services.

By recognizing your weaknesses and accounting for them in the beginning,
you’ll ensure that your business will function efficiently on every level
and will increase your odds at success.

3. What am I willing to invest personally?

While running a business from home looks appealing, it requires personal
sacrifice and discipline. For those who work in an office, business hours
are defined and you work alongside coworkers who can support you. When you
work at home, it’s easy to get distracted by the routines of those around
you and it can be more difficult to define your work hours and commit to
them regardless of outside pressures.

It’s helpful to make a rough outline of your weekly schedule. Figure out
when your most productive hours are and what activities you may be able to
sacrifice for work. Are you willing to work after the children have gone to
bed at 9pm? Maybe you’ll have to cut out a weekly lunch date with a friend?
Beyond the time commitment, your home business will require you to invest
your energy and your emotions. There will be highs and lows and the rewards
may not be immediate. At times you’ll need to take chances. It will require
you to troubleshoot, multitask and adapt. There’s also always the risk of
failure. Consider all of these factors before you start your business and be
sure that have what it takes to handle the ups and downs of being an
entrepreneur.

4. What am I willing to invest financially?

While some may require a larger initial investment than others, launching a
business requires capital. If you’re discouraged by having to spend money in
the beginning, then perhaps the business you’re considering isn’t the right
business for you. If you feel passionate about what you plan to do, then the
investment will seem like an end to a means not to mention an investment in
yourself.

That’s not to say that you need to spend foolishly. Minimize your
expenditures by investing in the necessities first. You may want to make a
list of what you anticipate your business expenses to be for the first three
months of your start up and then another list of anticipated ongoing monthly
expenses. Consider legal fees, marketing and advertising costs, merchandise
(if you’re planning on selling a product), supplies, insurance and office
equipment. Decide what expenses will be necessary in the beginning and what
purchases can wait.

Look at the final numbers and then ask yourself again if you’re willing to
commit to that type of financial investment. If the answer is “yes”, then
you’re ready to move on to question #5.

5. What do I hope to gain?

In your search for a business to run from home it’s inevitable that you’ll
encounter “get rich quick” schemes and work from home scams. No matter what
you may have read or heard, there is no formula for overnight success in
business. Businesses grow slowly and require work and commitment. If you’re
launching you’re business with dreams of overnight riches, you’ll inevitably
be disappointed.

Ask yourself what you hope to gain from your home business. Is it a better
lifestyle? More time with your family? Personal stimulation? Financial
rewards? Independence? And then ask yourself if you think that your business
can (realistically) be a means to that end. Your answer may not be a
conscious one, it may be a gut feeling but in my estimation, that’s the most
ringing endorsement of all.

As you work at your business, keep your goals in mind. From time to time, as
you ride the highs and lows of being a business owner, remind yourself of
the reasons why you decided to launch your business in the first place and
strive to keep those priorities in focus. You’ll find that the most
successful businesses are driven by people who love what they do and focus
on the day to day work of their business rather than the financial rewards.
After some careful self-evaluation, you may realize that you and your
potential new business aren’t a very good fit. Don’t be discouraged. It’s
better to find out now then after you’ve made the personal and financial
commitment. There are also numerous options available to those who want to
work from home and you can continue to research them with your newfound
self-awareness.

If however, after answering the above questions you’re more confident than
ever that you’re ready to become a home based entrepreneur, then
congratulations–you’re about to embark on one of the most challenging and
rewarding adventures of your life!

Debra Cohen is President of Home Remedies of NY, Inc.–a Homeowner Referral
Network (HRN) business and author of The Complete Guide To Owning And
Operating A Successful Homeowner Referral Network. She has helped more than
300 entrepreneurs launch successful HRN businesses nationwide. For
additional information, visit www.hrnbiz.com.