This isn't always case. Business opportunities, or "biz ops" as they're commonly called, often prey on people who are desperate to start making money from home. The ridiculous claims of easy money can *seem* so real, so achievable -- but let's face facts: there's no such thing as easy money when it comes to starting a business.

You won't make $5000 every month with 30 minutes of work a day. You won't receive $100,000 in your mailbox just by sending $5 to first address on a list. Your "automated business-in-a-box" will not magically produce $1000/day while you sit on beach sipping a cool drink.

The lure of easy money is hard to resist. There is certainly no shortage of biz ops, and no shortage of people who are willing to try them. That's a *good* thing in many ways, to be open to trying new things... but it can also be dangerous: you could end up in situation where you jump from one biz op to another, in an endless quest for something easier, faster, or potentially more rewarding.

© 2002 Elena Fawkner

If you’ve left corporate world to strike out on your own in your own home-based business, you'll be acutely aware that your financial success is up to you and you alone, perhaps for first time in your life. For obvious reasons, therefore, your home-based business is probably run on a shoestring.

This means, of course, that you do everything. Although you are now CEO, you are also secretary, marketing director, receptionist and gopher. But hey, that’s way you like it, right? Just as well too since when you’re just starting out you don’t have much of a choice anyway.

But sooner or later, if you keep doing everything yourself you’ll necessarily curtail growth of your business. It will grow to a certain point but no further because you’re only one person and there are, after all, only 24 hours in a day.

Now, if you’re satisfied with making a little money on side, that’s fine. But if your business is your only source of income, you must move beyond start-up if you are to become financially successful and avoid stunting growth of your business.

This article looks at growth stages of a typical one-person home-based business and how to gradually grow your business without being run over in process.

INITIAL GROWTH

=> One-(Wo)Man Band

As already stated, when you first start out, you do everything yourself. You’re both chief cook and bottle-washer. And you can continue like this for quite some time because, initially, you are unlikely to be fully stretched. This is exactly what you should be doing.

This is NOT time to go out and spend money with advertising agencies and hiring employees. For so long as you CAN do everything yourself and everything that needs to be done is getting done, this is most efficient use of your current resources.

=> Don’t Overcommit Yourself

During this stage, however, it is important to be careful not to overcommit yourself. You are a fledgling. You must learn to fly like a sparrow before you can soar like an eagle. So, when you first start out, underpromise and overdeliver.

Also, don’t embark on an aggressive marketing campaign until you have business resources to satisfy demand you will create. Let your advertising grow in line with growth of your business, addition of employees and increased financial capacity.

=> Pay Yourself

Be extremely careful with your pricing during this stage also. Make sure you include a wage for yourself in your overhead costs and add a realistic profit margin (say 15-20%).

Remember, price equals costs plus profit margin. Costs include direct, indirect and overhead costs. For a more detailed treatment on pricing, read “Pricing Yourself to Get, and Stay In, Business” at http://www.ahbbo.com/pricing.html .

=> Profits Belong to Your Business

Plough your profit back into your business. This is most important. This is where your funds for expansion during next growth phase of your business come from. NEVER use your business’s profits to pay personal expenses. This is what you pay yourself a wage for. Your business’s profit does not belong to you. It belongs to your business. There IS a difference!

=> Avoid Premature Expenditure

During your shoestring days, look for lower-cost substitutes before incurring substantial expenditure. For example, don’t go out and buy a new fax machine, a new answering machine, a new photocopier. Get one of those three in one jobs that sits on your desktop and only costs a few hundred dollars.

Use a good accounting software program rather than hiring an accountant and hire from your family first if you need temporary help. Another good idea is to negotiate with family members to take over some household chores you would normally do yourself to free your time to work on your business. This works especially well with pocket-money age children and teenagers.

During times of temporary overload, hire temporary staff from a staffing agency if no family members or members of your social circle can do job.

=> The Glass Ceiling

After a while, somewhere between two year and five year mark, you will notice that your business is beginning to stagnate. At this point, you've stretched yourself and your resources as far as they can go. You've hit glass ceiling, in other words.

At this point, if you want your business to grow further, you'll have to grow it. It won't happen as part of an evolutionary process beyond this point.

BEYOND THE GLASS CEILING

=> Hire Permanent Employees