I’m excited to share a recent article written by Brenda Spandrio. Known as The Declutter Lady, she helps people find a way out from under their piles of “stuff” – physical, virtual and even emotional. Clients have included home businesses/home offices, entrepreneurs, telecommuters working part-time from home, churches and corporate offices, as well as homeowners simply overwhelmed by their clutter.
Though not a “born organized,” Spandrio has learned to accept, appreciate and adapt to her tendency toward clutter so that it no longer overrules her dreams and aspirations. She works with clients to develop customized systems based on how THEY think so that they too can live the life they love. Follow her on Facebook and Twitter to learn more tips.
Thanks so much Brenda for sharing this post! Read on to become inspired!
The whole point of being in business is to make money, right?
Here are five basic questions to help you figure out how much money your home-based business needs to make in order to meet your financial goals.
1. How much money do you want as profit?
Many entrepreneurs don’t have a clear idea of what that means. Profit is the money that is free and clear for you to bank or spend after you have paid the business expenses. So, if you’re expecting your business income to bring in $1200 a month to pay the mortgage, you will in fact need to make significantly more than that (and don’t forget that you need to pay taxes!).
2. How much money do you need to cover the cost of being in business?
No matter your business model, there are expenses to consider. These are generally known as overhead. Working from home can keep many of these costs low, but they still have to be included as part of your income planning.
These overhead costs include (but are certainly not limited to):
- Computer hardware and software
- Internet, phone and other utilities
- Domain name, Webhosting and design
- Training and trade resources
- Business cards
- Accountant services
- Association fees
- Business licensing and permits
- Office supplies
Track all of your expenses related to your business so that you have a clear picture of the true cost of your venture.
3. How much money do you need to produce your product or carry out your service?
These costs are the materials required for actually making your product or delivering your service.
But you also need to charge for your time, something many home manufacturers are surprisingly reluctant to do. They feel guilty, like it’s not “fair” to charge for their labor. But if you are not including a living wage for your labor, you will not be able to meet your financial goals.
Packaging and shipping charges can either be separate from or included in the price of your product – but do include them!
4. How many hours are you willing to devote to your business?
While being in business for yourself gives you flexibility to choose when and how much you will work, you do need to dedicate significant time to focus on your business because, quite simply, if you don’t put the hours in, you won’t make any money.
5. Are you willing to get help with the kids?
Most mompreneurs want to run a business from home so that they can “be there” for the kids. That is an awesome vision, but it really depends on your business model. Will your toddler have a meltdown while you are on the phone with an important client? You may need to have some kind of care arrangement for the kids so that you can deal directly with clients without interruption or handle parts of the business that require intense focus.
[Tweet “How much money does your home-based #business need to make to be profitable?”]
In a recent teleseminar, nationally recognized author Laura Vanderkam explained that she has childcare from 8 to 5:30 every day.
You may prefer to have a local teen come to your home at certain hours to keep the kids busy, or trade childcare with another mompreneur so you each have focused time on your businesses without an added expense. If your work can be done when Dad’s home, you won’t have to pay for someone else to take care of the kids.
Your ability to run a profitable business depends on your answers to these five questions. It’s important to understand the requirements of your business so that you can be realistic about being “Mom” at the same time you are a profitable “Mompreneur.”
Thank you so much Brenda! These tips are great for us working moms! To contact Brenda directly, you may find her at www.thedeclutterlady.com