Use Your Business Experience

Using the business experience you have acquired over time can be one of the most useful tools in helping you become a money maker with your own home based business. 

It is common knowledge that it is easier to obtain finance when buying a franchise or an established business than for a new start-up business. Why? An established business has a track record. It has proven that it can be viable. Same principle applies to a franchise. Result? Lower risk.

Business experience, or the lack thereof, is often the difference between success or failure. It is much easier starting your own home based business in a field that you know and it will also be much easier to obtain finance should you require it.

Remember that a business is nothing without people. Absolutely nothing. It is people that will determine the success of the business. Furthermore, in my opinion, having an academic qualification is good, but I would rather entrust my business to a successful businessman with 10 years experience and no qualifications but a good track record than to a new Harvard MBA graduate with no experience at all.

I am often surprised that people sometimes have no idea what home based business to start and completely forget about the value of their business experience.

Most of the successful businessmen and businesswomen I know only became successful after leaving their jobs and starting a home based business using the business experience they acquired in their previous jobs.

It is difficult to succeed by leaving behind an industry you are familiar with and starting a home based business in another industry without having any business experience. Not impossible to succeed but difficult. It can be very risky.

I always compare moving to a new industry to moving to a new country. Yes, I know I am reaching a bit but just think about it for a moment - People may speak a different language, you have no idea of local laws and customs, you have no idea of where to rent or what would be a reasonable price to pay for a house, etc. Bottom line, you basically need to re-educate yourself. It can take time and in the process you can end up making many mistakes, costing you money. In fact, you can be wasting money without even knowing it.

Let's recap for a moment:

If you want to work from home, start an online business or become a money maker with your home based business, try to remain in the same field of business or industry you are familiar with. It is impossible to measure business experience in monetary terms. How do you put a value on 20 years experience? How do you put a value on all the training you received? How do you put a value on the lessons you have learned and on the business relationships you have built?

O.K., assume you are sick and tired of your old industry. You would rather go back to school and start over than continue in the same industry. What should you do?

Here are five tips that can help you to succeed in a new industry:

1. Go where the money is.

A growing or booming industry is often very forgiving to new entrants and you may have a better chance to succeed if you are not perceived to be a huge threat to the existing players in the industry.

2. Do something you love.

If you hate or dislike your old industry then do yourself a favor and do something for a change that you love doing or at least think you will love doing.

3. Test the water first. Start part-time.

Don't try to go in all directions at once. Take your time. Start part-time and only start doing it full-time once you are confident that it is the right decision based on the success you have already achieved on a part-time basis.

4. Read, research, investigate.

You have a lot of catching up to do. Do whatever you can to expand your knowledge. Read as many books as you can find on the topic, speak to other people about it and do your market research.

5. Find a mentor.

If you do not have the business experience then find someone that has and is able and willing to be your mentor. A mentor does not need to be your guardian angel. In fact, he or she does not even need to know you see him or her as a mentor.

Footnote about mentor - When you are ready to employ other people in your business, always do your best to employ people that know more than you. They are no threat to you. They may be your employees as far as everyone else is concerned but they may also be your mentors without ever realizing it.

To conclude, using your business experience is a great tool in helping you to become a money maker. It does not matter if you are drawing up a business plan sample that nobody will ever see or whether you are preparing a business plan for a financial institution. You must always be clear on how your business experience will help you to succeed or how you will overcome any lack thereof.