Dropship Business Opportunities

When the Business Costs You More Than You Earn

Venturing into a homebased business is a serious decision, one that requires careful planning and preparation.  Unfortunately, many aspirants quit  their day jobs and plunge into their home based business only to find that they’re actually not ready for the challenges.

To their dismay, some new business owners discovered that the costs in managing the business are even more expensive than what they earn.  Let’s take a look at the following sample situations:

Example 1:
An image consultant charges $50 per hour for her services.  But the costs on transportation expenses, taxes and daily living may prove to be way more that the $50 minimum earnings per day.

Example 2:
A software consultant earns $75 per hour as an employee.  He decided to leave his day job and work as a homebased independent software consultant.  He soon finds himself juggling costs in order to effectively market his services (enlisting in directories, sending brochures to prospective clients, participating at trade shows, hiring a telemarketer, etc.)  When he adds his earnings over his expenses, his costs turned out to be more than his returns.

Planning and Preparation
Both examples show that not enough planning and preparation has been done before starting the business.  Take note that being a home business owner involves basic costs such as taxes, insurance, licenses, marketing campaigns, operating costs, etc.

How can our image consultant and software consultant minimize their overhead costs?  The image consultant should track what her true cost of doing business is before setting an hourly rate, include a fixed amount for mileage, time in traffic etc.  On the other hand, the software consultant could have advertised his services using cheaper online marketing methods such as blogging, e-mail marketing, etc.

Through planning and preparation, a new home business owner can set realistic goals and plan the right steps to achieve them.  Possible problems can be anticipated and solutions can be planned out in advance to avoid making drastic decisions.

Minimize the Costs Through Dropshipping

A homebased dropshipping business is worth considering especially for new entrepreneurs who want to explore the market.  With dropshipping, there’s no need to set up the business from scratch.  You just need to find the right dropshipping partner and take charge of the product’s marketing or selling.

A dropshipping business doesn’t call for a very expensive investment since the costs on production, storage, packaging and delivery are taken care of by the dropshipper.  As a retailer, you can focus on selling the products using advertising methods that you choose.  If you’re not familiar with how dropshipping is done, this is the perfect time to do more research about it.


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4 thoughts on “When the Business Costs You More Than You Earn

  1. How long does it take a new business to break even and start making a profit after startup?

  2. The writer is right, before quitting your jobs, you should do researches and calculate the expenses of the business you’re planning to start. It’s not that easy because lots of factors should be considered. Be very careful in making decisions especially if it concerns having a business of your own. And if you think you have enough knowledge and resources then go. You may want to consider dropshipping of course. It’s a very good business that needs only small budget.

  3. Any home business that is legit does have cost factors. You have to budget and set goals. If I am not in profit after a few months then I don’t stick with it. If you don’t treat it that way you will not come out ahead. Set goals.

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