For most of us, the money we spend on our businesses comes from our own resources, either directly from our pockets, from savings or borrowed from various personal funds such as life insurance policies. Regardless of where the money comes from, it’s important to understand that starting a business involves risk. It’s also important to understand that it usually takes 3-5 years for a business to begin to show a profit. When deciding how much money to spend on your business and for how long, I recommend that you not risk more than you can afford to lose. Before writing that check, be sure you have a valid business purpose for making the expenditure. Here are some things that most home-based businesses need to spend money on:
Computer Equipment - The specific components needed will vary depending on your business. However, we all need a computer and printer. I recommend that you include an uninterrupted power supply (UPS) and an external device for data back up as part of your hardware configuration. Computers can fail unexpectedly for a multitude of reasons. The loss of data can be devastating to any business. Be careful!
If you participate regularly in craft fairs, a portable computing device may need to go on your list of ‘must have’ equipment. Being able to accept credit card payments is a convenience that can lead to increased sales at shows. The most affordable credit card processing option available, Square, requires either a tablet computer or smart phone. Square doesn’t work with a notebook or desktop computer.
Computer Software - You’re going to need a program to keep track of your income and expenses. You may choose to use a spreadsheet or a more complex accounting program. Special purpose software needs will vary depending on the nature of the products you create.
Internet Access - Obviously, you can’t sell online without Internet access and an online storefront. Zibbet’s Premium account offers an excellent value, with allowing an unlimited number of products making it well worth the price. The cost of an annual Premium subscription is less than the expense of participating in most one day craft shows.
You should also consider purchasing a domain name for your business even if you don’t plan to have a separate website. Your domain name can ‘point’ to your Zibbet shop and potentially increase traffic there.
Imaging Equipment - In order to sell your products online, you must be able to present excellent images of those products. A digital camera is a must for photographing most products. Part of your camera investment may need to include a basic photography class. A scanner is another device that can prove invaluable in the creation of product images.
Advertising - Business cards are a ‘must have’ promotional tool–don’t leave home without them! Project Wonderful and Google Adwords are two popular avenues for online advertising.
This in’t an exhaustive list of everything you’ll need to purchase for your business. However, it provides a place to start thinking about how you should be spending your business dollars. What are some of your basic business expenses?
Best wishes for much success on Zibbet!
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Vicki is committed to assisting her fellow Zibbeters improve their shops for successful online selling. She is the owner of five Zibbet shops: LOC Design Studio, Denim and Pearls, A Stitch and a Prayer, Black Creek Crossing and Think Like a Fish. You can follow Vicki on Twitter and through her LOC Design Studio blog.
Tags: Business cards, Digital camera, Google Adwords, Hardware, Investment, Let's Talk Business, More About Money, premium account, Profit, Project Wonderful, Software, Success on Zibbet
