Use these five steps as a guide for building a successful home-based Business

Every day, hordes of "Bill-Gates-wannabes" flock to the Net in search of the golden key to financial freedom. If you are one of the many seeking a home-based business that will take you out of the rat race, consider these five steps.

1. To Thine Own Self Be True. Use Shakespeare's advice as the first step in finding the right home-based business. Research shows that people who like their work tend to be more successful at it. So, find out what you are good at doing. Create a ledger sheet with your strengths on one side and weaknesses on the other. Pull ideas from your resume. Ask your family and friends to give their input. Brainstorm aloud. Whatever it takes, just be realistic when creating your inventory. You will refer to this list when judging different business opportunities.

2. Believe In What You Promote. There are marketing geniuses and "spin-meisters" on the Internet who could make the Titanic look like a dream vacation. But, most of us are better persuaders when we believe in what we are selling.

So, when investigating several different types of home-based businesses, decide if that product or service is something you can feel good about marketing. For instance, if you are a vegetarian, you might find it difficult to sell beef steaks. On the other hand, you might excel at promoting natural snack foods.

Do your market research. There are hundreds of business sources to advise you on what information to gather. Then, refer to your skills inventory. Based on your market research, do you have the skills for this type of business? Bottom line, if you believe in your business choice, then your chances for success increase dramatically.

3. Make A Budget And Stick To It. Once you have determined your strengths and weaknesses and have chosen a home-based business that you can believe in, it is time to create a financial plan. Whether you are operating on a shoestring, have unlimited funds or are somewhere in between, most businesses experience a ramp-up period before making money -- much less a profit. Keep this in mind when making your budget. Create a budget to cover your projected costs (i.e., start-up expenses, overhead, inventory, payroll, taxes) as well as a safety buffer for the ramp-up period.

If you need help, there are many resources. There are several moderately-priced software applications that use a questionnaire format to set up a budget. And , there are free and low-cost software downloads, such as those found by searching the shareware and freeware sites. Here's four to start with:

www.freedownloadscenter.com

www.ducksoftware.com

www.freewarehome.com

www.cnet.com

Be sure to check out your local community college and the Small Business Administration for continuing education or enrichment courses.

4. Run Your Business Like It's A Business. Obviously, you have considered the benefits of a home-based business: the two-minute commute, extremely casual dress code, flexible schedule, distractions of your own choosing, etc. But, there is also a flip side to consider. Sometimes the flexible schedule and personal distractions can affect your productivity.

Even if you have a financial safety net, approach your business as a business, not a hobby. Write a business plan then work daily to achieve the goals that you have established. Spend your time and money wisely. Invest in sound legal, accounting or technical advice, unless you have that expertise. Join professional organizations related to your business. You will benefit from been-there-done-that advice and, possibly, make some great contacts.

5. Market. Market. And market. Now that you are open for business, it is time to tell the world. And, via the Internet, that is entirely possible. Examine your product or service as if you were a customer. Say that you are selling widgets. What benefits do your widgets have? How are your widgets better than those offered by competitors? What additional services can you offer (i.e., free or low-cost shipping, frequent buyer programs, etc.) that could close the sale?

Once you have established your key selling points, turn them into a marketing mantra. One of my college professors said, "If you throw enough stuff at a wall, pretty soon, something will stick." So, start throwing. Whether you opt for online advertising or prefer print, TV, radio or a combination, include your key selling points in every ad and stay within your budget. And, take advantage of the many marketing strategies available online - pay-per-click ads, power linking, email, etc.

Use these five steps as a guide for building a successful home-based business. But, like any formula, what goes into it will determine the end result.