Right let’s talk about money – specifically what is the cost that you realistically need to start up a successful home business opportunity?
I’m going to cover as many different opportunity areas as possible and give you an indication of the typical fees and cost to start your own home business opportunity, based upon feedback and personal experience.
So, in no particular order, let’s get stuck in.
The potential cost involved when you start a home business opportunity
FINANCIAL SPREAD TRADING
It’s a hot topic right now (especially Forex trading) and here are plenty of systems, software and training seminars out there. First off, you MUST accept that any money you put into trading has to be money you are comfortable losing. If you are in any way emotionally tied to the money you are using, then forget about making reasonable trading decisions.
Also, it would be wildly irresponsible of you to use emergency or ‘rainy day’ money. No matter how tempting it might be, do not take out a loan or remortgage the house (yes, people do consider this!).
From the hundreds of systems I have come across, I would say that the bare minimum required to trade would be 100 (this is in addition to the cost of the actual trading system which I’ll get on to that in a moment.). And that’s a best-case scenario where you are being closely trained. If you are going it alone with a piece of software or trading system, then a more realistic starting pot would be £500 or preferably £1,000. Why? First, if you are following a sensible staking plan then you won’t be risking more than around 3% per trade. Now, it only takes 10 losing trades in a row (which is entirely possible), to wipe out a big chunk of your bank. So you need enough in there to trade another day.
Bear in mind that most spread betting companies will require you to stake at least £1 per point, so if you were to have a stop loss of say 10 points, your maximum loss would be £10. If, you are risking 3% per trade, you would need at least £300 to cover yourself.
Also consider the compounding issue – the more you have to start with, the higher your stakes and the sooner compounding can really kick in and grow your bank.
So what about the cost of trading systems? Right now, the range is huge. Yes, you can pick up strategies for as little as £50 all the way up to £6,000+. Is the £6K strategy any better than the £50? Maybe but then again maybe not.
Expect to pay much higher price for software. As you would expect, there is a higher cost of development as well as a higher perceived value. Like anything, you often get what you pay for. When making a decision, I would always make sure there are plenty of testimonials from previous users plus an unconditional money back guarantee period.
Also factor in your ongoing costs such as data feeds and the spread.
Very similar to financial trading. If you are taking it seriously, with a strict money management and staking plan, you need at least £500 – £1000 to cover losing runs and ensure you are staking enough per bet to build your bank. If you are only making a couple of quid from each successful bet, then it’s important that you reinvest those winnings and increase your stakes accordingly. Obviously, the more you start with, the greater the compound effect.
How much should you expect to pay for a tipster? Industry standard seem to start around £25 per month, going all the way up to around £90. Always take into consideration with any subscription tipping service (either financial or sports betting), that you need to recover your subscription fee BEFORE making a profit.
Tips on selecting a tipster? Again, plenty of testimonials, a transparent track record plus some form of unconditional refund policy. Also, expect the worse case scenario that when you join you might be in the middle of a losing run. This happens even to the best tipsters. But if you choose wisely and look to the long term, then you ‘should’ come out winning.
Before the credit crunch you could raise finance for property investment with virtually no money down. Today, you haven’t got a chance! With the squeeze on credit markets, lenders are looking for a big deposit – 25% or more in some cases. So unless you have a chunk of capital or consider pooling your money in a property syndicate, it’s not something I would advise… at least until rates and deals become more favourable.
Gaining resale rights for information products (manuals, DVDs, audio sets etc) and selling them on or offline continues to be a big draw. And rightly so, as the business model is proven and the potential profits high. But what are the real costs? If you want the quick route, then buying resale rights can cost anywhere from 100 – 10,000 depending on the quality and exclusivity of the title. Of course, plundering the public domain for copyright-free material costs nothing but your time in collating, editing and formatting.
One thing that you will have to face at some point (and this goes for many businesses that rely on online or direct response marketing) is the cost of copywriting.
Copywriting continues to be one of the most important and valuable skills.
Good copy can make the difference between a million pound profit and failure. Yes, it’s that important! And yet, it is the one area that most people entering into info publishing completely underestimate. A decent middleweight direct response copywriter is going to charge at least 2,000 – 3,000+ for an 8-12 page promotion. And even then, you have absolutely no guarantee the promo will work.
Over the long term, I would strongly recommend that you consider learning the basic copy skills yourself, even if it is to give you experience in reviewing other people’s copy, it would be time and money well spent.
Oh and if you are putting together any form of hard copy publication, then an experienced layout Mac operator is going to charge you at least £20 per hour. Though you can sometimes put something together yourself with Microsoft Word templates…but it’ll take a lot of patience!
List rental: if you are going down the direct mail route, rentals of quality lists start around £150 per thousand and you would usually be expected to rent at least 3,000 of any individual list. In my experience, you cannot launch through direct mail (at least in the business to consumer market) without testing a minimum 10,000 names – which would allow you three list tests. If you’re onto a winner, then you’ll generate say a 2-4% response rate based upon a sub £100 product. For a launch mailing you can expect to pay around 600 per thousand mailed, so your upfront costs (excluding product fulfillment and copywriting) will be at least 6,000.
Of course, you don’t have to go down the direct mail route… you could test off the page or online with what’s known as a 2 stager: so your small ad leads to either an online promotion or a request to be sent a hard copy.
Setting Up a Website:
Whether you are selling your own products or creating a site to push traffic to affiliate links, the price of creating your own website has come down a lot in recent years. It’s now possible to get hosting, web templates and a domain name for less than £100 all in. I won’t go into the details of how here, but a couple of spare evenings and even the most technically challenged could have a basic site up. Of course, the trick is not the website itself, but how you drive traffic to it in the first place. If you already have a list of clients, then make sure you have their email addresses and send them a regular eletter with links to the site.
Search Engine Optimisation
Again, this is spawned a lucrative mini industry with consultants and ebooks and seminars all promising to reveal how to get your website high up the Google rankings. Now to be honest, there’s really no big secret to making a website attractive to the search engines. You’ve got to fill it with quality editorial copy that delivers go advice around a specific niche area. The more relevant copy you have, the more attractive your site becomes to the likes of Google.
The other ‘secret’ is simply to get as many other high quality websites linking to your site. This is seen as evidence that your site contains quality and relevant material for prospective searchers.
Neither adding editorial or linking necessarily costs money BUT it will take a time – perhaps 6 – 12 months of regular graft before you see any results. By all means go research about keyword density and all the other technical issues, but don’t be tempted to splash out thousands unnecessarily!
Online advertising: much has been written about Google AdWords. Depending on your keywords you are bidding for this could be anywhere from pennies to 10+ per click. Despite what many Internet gurus would have you believe, this is a hugely difficult and challenging route and is best approached with extreme caution. Your daily budget can get gobbled up very quickly and if you are not converting visitors well, then you’ll soon be out of pocket.
SHORTCUTS: I bang on about joint ventures all the time and they really are the best way to leverage your time and money. You can gain exposure to your product and build a valuable list of enquirers and buyers through some shrewd JV partnering.
eBay: zero start up costs!
Yep, you can register as a seller with eBay for free (you just need to give your credit card details though). Start by selling unwanted items you have around the house. Factor in your shipping costs in the auction details. You pay an insertion fee per listing – this starts at 10p for auction prices up to 99p through to 1.30 for auction starting at 100+. You also pay a Final value Fee to eBay if you sell the product – this is calculated on a sliding scale, starting with 5.25% for the first 29.99 down to 1% on anything over 600. Take a look at http://pages.ebay.co.uk/help/sell/fees.html for full breakdown.
Article Source: ezineArticles.com