Start a Home-Based Business

Recurring Revenue Model: Why It is Good for Small Business

June 29, 2016 By Isabel Isidro Leave a Comment

There are many ways to earn money, but one of the best business models around is the recurring revenue model.

What is Recurring Revenue?

Recurring revenue is predictable and reliable income month after month. Instead of selling products or services one at a time, you are essentially selling ongoing, subscription-based transactions where you can expect to receive revenues on a regular basis from your existing customers.

Recurring revenue ensures you get the maximum lifetime value from your customers. You get lower acquisition cost because you are not going after the customer for that one time sell. Rather, you can expect a steady stream of revenues from the customers that you already have.

Some examples of business ideas that use recurring revenue models include:

Auto renewal subscriptions, mostly for “evergreen” products or those products that are hard to replace and could go on forever such as document storage subscriptions
Software as a service (SAAS) where you sell software on subscription basis.
Businesses requiring hard contracts such as cell phone companies where they lock their subscribers for up to two years
Affiliate subscriptions where you send referrals to subscription-based products and get commissions as long as customer is a subscriber.
Supplemental services such as a web designer offering web hosting, like what we are doing with Ysari.com
Finite subscriptions such as the annual magazine subscriptions
Membership sites where you charge access to your products, services or information for a regular fee
Service plans or retainers where customers pay for what they need each month. Examples of this include WordPress plugins where you have to pay a regular subscription fee (could be yearly, monthly or every six months) to avail of support and updates.

Why Recurring Revenue Is Good for your Small Business

The title of this Forbes.com article explains it all: “Want Venture Investors? Build A Recurring Revenue Model.” According to the author, one of the main things investors are looking for in a business to invest is the “frequency of that revenue stream, and whether or not it is recurring and easily predictable.”

Time tracking software company Hubstaff’s co-founder Dave Nevogt even goes so far to say that

Recurring revenue is crucial to building a million-dollar business. It’s a key factor in creating a business that scales.

Nevogt explains that he used to sell instructional golf DVDs and books for $47 each. If he wants the business to grow to $1 million in annual revenue, he needs to sell:

$1,000,000 / $47 per unit = 21,276 units per year
21,276 units per year / 365 days in a year = 58 units per day

To sell 58 units per day, he has to be constantly working hard to get each sale every day. To achieve his goal of earning $1 million faster, he has to either increase his price or have more products that he can upsell on. Either way, it will not be easy and will entail constantly finding customers that will buy.

So he switched business models and used the recurring revenue model for his time tracking software business Hubstaff. He currently has 2,400 paying customers paying him an average of $32 per month. Even if he just keeps that number of paying customers, he is on track to achieve $1 million in revenues in 13 months! As he explains:

That repeatable transaction is what enables you to spend your time growing the business instead of fighting for the next sale.

Are you convinced yet of using the recurring revenue model for your small business?

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7 Ways to Earn Money from Home

May 8, 2012 By Isabel Isidro 9 Comments

Whether you are looking to augment your income or find ways to make money, there are a number of ways that you can earn money from home.

Working from home offers you the opportunity to become your own boss, without the company bureaucracy and the boss breathing down your neck. If you have been laid off from your job and find it difficult to get another job, working from home also allows you the chance to earn money for yourself and your family. Plus, in some cases, you may even be able to work in your pajamas!

However, it is important to understand that many of these income-generating opportunities are not get-rich-quick scheme. Avoid those business opportunity programs that promises that you’ll earn 5-figures in one month!

To earn money, you will need to produce a product or service that people will actually want. For jobs that you can do from home, the companies may require that you submit to a background check or test before you can be hired. Your income potential depends on how well you present yourself to your client, your skills and talents — and most of all, your willingness to work hard.

Here are some ways that you can earn money from home:

[portfolio_slideshow navpos=bottom]

For more information, read the article How to Work from Home.

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How to Make Money and Use Fiverr for Your Business

November 4, 2011 By Isabel Isidro 14 Comments

Looking to earn a few extra dollars quickly? Look no further than the growing industry of micro job sites. Micro job sites are marketplaces where you can buy and sell small services, from $4 to $25 worth of tasks.

The leading micro job site today is Fiverr http://www.fiverr.com, which is a thriving marketplace for people to share things they’re willing to do for $5. Prices of everything at Fiverr for various types of gigs are fixed at $5.

The kinds of services on Fiverr go from serious business tasks to inane to funny to downright weird. Some examples include these recent postings:

“I will do a video while speed drawing a funny character with your personal MESSAGE on the bubble for $5”
“I will tear Up a Blank Piece of Paper and Restore it with Your Message Appearing On it Magically for $5.”

Fiverr is free to join, where you post a job listing of what service you can provide. All gigs are listed starting with the phrase “I will …”, and when you sell a gig, the fee is $1 (so basically you earn only $4). Categories of services being offered include business, programming, marketing, graphics, writing, technology, among others. Of course, if you want “out of the box” creative tasks, there are categories such as the Silly Stuff, as well as Funny and Bizarre.

With Fiverr, you don’t have to be especially skilled or talented to make money. You don’t have to be an expert in the field with a long list of credentials and an impressive portfolio. After all, what can people really expect with $5?

You can provide a serious business gig such as website analysis for $5, or you can offer an inane service such as fake tarot reading, and still make money on Fiverr. You can think of something silly, entertaining and funny, and do these tasks on Fiverr for people willing to pay for it.

If you’re looking to use Fiverr for your business, some recent business-related postings include:

“I will design a Professional Website Banner, Header, eBook Cover, Magazine Cover or DVD Cover… for $5”
“I will create this animated intro video for promoting your website or business for $5”
“I will convert your basic psd file in html/css for $5”

As an entrepreneur, Fiverr can be used an alternative marketplace for your business. You can use it to get additional clientele, as well as a means to fill some of the down time that you have in your business.

You can also use Fiverr to earn money from little components of your whole business. If you are a social media consultant, for example, whose package of services include setting up social media profiles of clients to providing tips on increasing the number of fans/followers, you can break it down on Fiverr into different tasks and earn money from each component. You can sell an ebook of tips on how to do social media marketing, set up social media profiles for people, create a background for clients on Twitter, and increasing Facebook or Twitter followers.

Fiverr as an Inexpensive Outsourcing Platform

For home-based entrepreneurs, freelancers and solo business owners, Fiverr can also be used to outsource small tasks. With the $5-a-job system, you can outsource a number of tedious and small tasks for very low price to help you focus on the the more important aspects of your business.

You can post the tasks you want done and Fiverr users can take on your little projects.

However, it is important to understand that these are $5 jobs. While some Fiverr users perform really great jobs, in general, don’t expect high quality output. You get what you pay for: you don’t pay $5 and expect a $25,000 job! If the gig falls through or isn’t done well, the $5 fee is not too much of a loss.

When choosing Fiverr providers, be sure to check their feedback scores before hiring the person. Fiverr’s feedback system allows buyers to post feedback on people who perform tasks. Choose providers with positive ratings and stellar feedback.

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Home-Based Franchising: What You Should Be Looking For

June 17, 2011 By Contributor 7 Comments

Finding legitimate home-based franchise opportunities can seem overwhelming at first. After all, there are so many opportunities, and it seems like there are so many promises.

So, how do you find the right opportunity so that you can run a successful franchise from home?

You have to know what you’re looking for!

When it comes to finding the right franchisor, you need a company that will:

Give you plenty of support

You will need help and guidance to get your franchise up and running. You’ll need a franchisor that can work quickly to get you the equipment and the information you need to move forward. After all, you’ll be expected to follow your franchisor’s rules and business protocols, so you’ll need the right tools to do it.

Give you ongoing training

As you move forward with your business, there are going to be new developments and new products that you will need to know about. A good franchisor will keep you updated on the most current information – whether it’s through an online course or through a live training session at your home office.

Treat your home-based franchise just like any other

Working from home doesn’t make you less of a professional. In fact, you may even be able to get more done without the distractions that come with a traditional office! In order to see the most success, you will need a franchisor who takes every franchisee seriously – not just the ones that go out and rent office space.

Once you have selected the right franchisor to do business with, you can enjoy all of the benefits that come with running a home-based franchise, like:

The convenience of working from home

When you work from home, there is no commute, no need to fill up your car’s gas tank once a week, and no need to wear a business suit. You can simply get to work in a way that’s most comfortable for you – and, ultimately, most productive. You’d be amazed at how a little bit of flexibility can change your entire attitude!

The ability to save money

Working from home means not having to pay for office space – meaning your start-up costs will be significantly lower than traditional office-based franchises. With all of that money that you’re saving, you can afford to hire more employees, or simply keep the money for yourself and turn a bigger profit!

Check out our Home-Based Franchise Directory

About the Author:

Lesley D’Arcy – As a Franchise Recruitment Manager at Mortgage Choice, Lesley D’Arcy is responsible for recruiting franchisees to greenfield (new) franchise opportunities . Her career in franchise recruitment spans over 15 years where she has worked with many major franchise brands. Lesley has a wealth of experience in recruitment of franchisees and builds on this experience by unearthing and developing the latest and most innovative ways to help franchisors build their networks. This experience has given her the skills to become an expert in the field of franchise recruitment, excelling in lead generation, screening, qualifying and selling to prospective franchisees.

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Tips on How to Child-Proof Your Home Office

January 21, 2011 By Contributor 2 Comments

[tweetmeme]A home-based or virtual office is often an irresistible temptation to the young children of a household. The desire to be with the parent who works in the office and to be included in their activities is a powerful attraction. Young children love to mimic the activities they see their parent involved in, whether it be sitting at a big desk with the computer or writing important documents. The key to child-proofing your office is to provide space and materials in a safe environment so the time your child spends there does not upset the productivity and peace of your office, but rather adds to quality time with your child.

Keeping safety as the major motivator, develop a plan of action to make your home office a welcome place for your child to spend time. Some ideas to consider when developing your plan are:

Create a distraction. Set aside a corner of the office where you can have a toy box filled with toys that are suitable for the space you have available and is out of the traffic area required for the smooth operation of your business. Encourage your child to keep the toys in the designated area so they don’t become a hazard.
Provide materials similar to those you use while you work so the child can “do work like Mommy or Daddy.” Be sure to emphasize that they now have their own things that are like yours to work on and that yours are off limits.
File important papers promptly. Papers that are left sitting around are often attractive to children; they see you working and writing on them and want to do the same. Don’t leave important papers out where your child has access to them. Provide your child with paper and crayons they can draw on, allowing them to be creative.
Make sure the area is physically safe for your child. Attach electrical outlet covers to outlets that are not in use. Look for window blind cords, hazardous chemicals and other such items that are used in your daily business making sure they are stored out of the reach of children.
Get rid of the electrical wires. Cable ties can be used to tidy and shorten wires that can be a danger, not only to children but to anyone who moves around the office. Making sure wires are not in the way protects the people in the office, as well as expensive equipment, from damage.
Keep garbage contained. The answer to this can be as simple as purchasing a garbage container with a lid.
Keeping drawers and cabinets inaccessible to children with child-proof latches is another great idea. Small items present a safety risk for young children. Storing loose staples, elastics, tacks, and paper clips in plastic containers with tight fitting lids will remove this risk if you don’t have a drawer or cabinet that is equipped with the appropriate hardware to make it inaccessible to a child.

These simple ideas, do not take long to implement and the cost is minimal. Having a child-proof office in your home gives you peace of mind and has the added benefit and pleasure of you being there for your child.

About the Author:

Michelle Jamison is a Virtual Assistant, Coach, Speaker, College Instructor, and Author. Her latest book, Virtual Office Essentials: Success Strategies for the Virtual Work Environment provides virtual office workers with solid strategies to ensure a successful virtual work environment. http://www.virtual-office-essentials.com

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Working on the Go: Importance of Having the Right Computer System

November 19, 2010 By Isabel Isidro 3 Comments

Working at a home business doesn’t always mean that you have to stay and work inside your home.

You may be running a business that require you to spend most of the time outside of your house, or meet with clients regularly. Or you may be the type who cannot survive being cooped up in your home office all day and has to be constantly surrounded by people and activities.

If you miss your office water cooler chats, you can bring your work with you and go to a place where you can socialize and work at the same time. You can go to Starbucks and work, all the while enjoying cups of coffee while watching the people go by.

If you are working in your business part-time and commute to your day job, you can use your train or bus ride to work on a few tasks. Or if you are waiting for a client who’s running late, having a computer with you can allow you to sneak in 5 or 30 minutes worth of work in your day.

Whatever your reasons, it is important to find a computer system that works best for your needs and can address your need for mobility.

Options for Working on the Go and Outside from Home

When you’re on the go or want to work outside of the home, then you need to invest in a computer system or other gadgets that will allow you to be mobile and productive at the same time. You have a number of options that you can choose from.

Smartphone

The smartphones today — e.g. iPhone, Blackberry and others — can be used as your most compact workhorses. You can use them to check and respond to your emails. You can also work on documents, albeit at a significantly limited screen space and very small keyboards. You can also use them to check your Twitter, Facebook, Stumbleupon and other social media networks. iPhones and Android phones also benefit from the vast marketplace of applications, including a wide variety of apps that you can use for business. The main downside, though, is that the battery life of these gadgets are quick to run out if you start using them for tasks like scanning business cards, writing a document or even frequently checking your Twitter or Facebook for your marketing.

Some products you may want to consider are:

Notebook computer

Notebooks are ultra light computers designed to allow you to work anywhere and be mobile. They are typically smaller than laptop computers, but pricier (especially for the high end versions). To allow these systems to be lighter, notebooks often do not have an internal floppy disk drive. It also doesn’t have the ability to use CDs or DVDs. But if you simply need it to create documents or even write your blog posts, notebook computers are a good option for being productive while on the go.

Here are some notebook computers you can use are:

Laptop computers

Laptops are often bigger than notebooks, and as the name suggests, best used for working with the computer sitting on your lap. It is often larger and heavier than notebook computers, but is more powerful and with more features. They have better graphic systems than notebooks. Laptops are easier to upgrade, and they have internal CD or DVD drives.

Here are some laptop computers to consider:

Tablet PC

Tablet PCs such as the iPad offers compact, convertible design that makes it easy to use the computer even in small spaces. Next to smart phones, tablet PCs are the most mobile, which is akin to taking a notebook and a pen. And just like a notebook, most tablet PCs offer the feature that converts your handwriting into text. However, they are smaller than laptops so the screen is smaller as well. Models such as the iPad have revolutionized the industry with its touch screen capabilities and multitudes of apps that significantly extends the functionality of the tablet PC.

Here are some tablet PCs to consider:

Mobile Wi-fi Hotspot

Having your own access to Internet in a secure environment is a must-have for today’s businesses. If you want to work on the go, bring your own hotspot. Instead of paying Wi-fi and getting data plans for each of your devices, you can get a plan that allows you to connect multiple devices at once. You can bring your laptop, tablet and phone (including that of your children) and enjoy accessing the Web. Plus, you avoid the risk of exposing your devices to hackers by using your own secured system, instead of free Wi-fi you can get from Starbucks and other places.

Here are some wi-fi hotspot that you can consider:

Choose the best mobile computing system for you, equip it with mobile Internet broadband — and you’re on your way to a flexible working environment.

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How to Succeed as a Solopreneur

September 2, 2010 By Gourab Nanda 2 Comments

Going solo resonates confidence, fun, being in-control and satisfying but it may also get you slowed down, jittery and wrong if you get a bit sloppy. As all businesses build on values and skills so does a solopreneur. Here are top 5 secrets that can help you to easily navigate through the solopreneur’s rough role.

Values make decisions

Unless you have individual values regarding life, family, social and business you may fail in making the right decisions at the right time. It’s these values which fabricate the templates, on which making these decisions would prove easy, worthy, and correct. Mind you, you are all alone here and cannot afford the company of colleagues to help you, neither you can afford to lose time over a decision. So build a value system for your business growth and take decisions based on that.

Stay focused on the core

As your business grows, never let the additional business activities like back office tasks, customer relations, marketing, etc., bother you and let you deviate from the core business activity which only you can perform. These deviations may pluck you off the main business activity and gets you on the wrong end of fulfilling customer schedules. So think smart and try to offload non-core business activities to professionals like virtual assistants or freelancers who would do you a world of good by letting you focusing on your expertise.

Know how to set up a home office or virtual office

This is real key to save you all that you are gaining. It’s not advisable to rent premises, hiring employees, purchasing furniture, office equipment and so on, at least in the initial phase of your solopreneurship. Understand and know how to grow a home, garage or backyard office, a shared office space, etc., the objective is to save money for the business to take wings. Remember, the key is to build an environment that lets you unleash your expertise, ignite your passion and nurture your growth.

Extract the best out of the Internet

There are plenty of tools, people, social forums, advisors who offer free or cheap services to accentuate your business growth. For e.g., if you are a software trainer you could borrow or rent database of prospective students and send emails to them about your training courses rather than depending on costly newspaper ads. You can use the power of social networking and other technical forums to talk about your training programs and showcase your expertise on the related faculty and gain credibility and also business. For your other business needs you also have tools like QuickBooks to take care of your accounts, blogs to write articles promoting your business and so on.

Have a plan, have discipline, and don’t lose control

The biggest problem with being single is there is no one up there to warn you or tight you up if you are off track. If you can tackle this single biggest hurdle you sure will make it big. This mandates you having a clear and written growth plan, built-in discipline to follow the plan and the ability to kick your own butt when you get things wrong. So train your mind to ring the alarm bell if you go off track, and things will get you where you have planned to go.

That’s all to start with your own self-made business, remember not to get off track or the big boys will ride over you. It’s really satisfying to be in the company of some solo greats, so buckle up and get going.

Check out the slideshow How to Build a Successful Freelance Business

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Turning Something You Love into a Profitable At-Home Business

April 13, 2010 By Isabel Isidro 4 Comments

Turning something you love into a profitable business all starts with your idea of the best kind of life you want to live.

Think of your present state first. Do you see yourself doing the same things 10 or 20 years from now, where you drag yourself everyday to work doing the same things over and over again (with slight variations here and there). Do you really want to work because you have to, even if you don’t really like what you’re doing? I call it my “I’m here but I’m not really here” state. It‘s sort of a humdrum existence (some may even call it trapped) where you do things because you have to do them, and not because you are doing these things because they give you joy.

Then imagine your ideal life.

Well, guess what – some people are taking a hold of their lives and are deciding that enough is enough: they are pursuing their passions. What’s more, many of these folks are actually making a living out of what they love most. Meet a few of these entrepreneurs who changed their lives to pursue what they love most:

When Michelle Donahue Arpas of GeniusBabies.com was pregnant with her first-born child, she decided that she would stay at home to take care of the baby. She did not want to work full time as a social worker. And like many pregnant women, she was fascinated with in-utero development and the impact of stimulation such as classical music on the brain development of babies. When her baby was born, she received numerous gift baskets from friends and families. She noticed that most of these baskets contained common items such as lotions, powders, etc. So she thought, why not offer baby gift baskets that contain items designed to stimulate the baby’s minds. That’s how her online business GeniusBabies.com was born, which allowed her to pursue her passions in life while providing supplemental income to the family.

Another entrepreneur I interviewed and who is a perfect example of someone who pursued his passions is Richard Busch of Virginia. After a 30-year career as a highly successful magazine editor (he worked for National Geographic), Richard made a 180-degrees turn and quit the job in 1997 at the age of 56 to pursue his passion for pottery. When he was in his early 50s, Richard started asking himself what his life would be when the magazine career ends and what it is that he really wants to do in the years to come. Richard described that stage in his life, “The more I thought about it the more I felt like I’d really like to be a potter.” He sold his house in the Northern Virginia suburbs and moved to a farm where he has more room and space to set up a good-sized studio. Now, he has been featured in various magazines such as Entrepreneur and Costco’s Costco Connection, where I learned about him.

Asked what makes a happy life, Sigmund Freud said, “To love and to work.” How great could life be then, if you combined what you love with what you did for work? You can turn your hobby into a pastime, or start a business from what you love to do best.

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Internet Fax Services: A Long Way from the ’80s Fax Machine

March 19, 2010 By Steve Adams 8 Comments

Big hair. Padded shoulders. Faxing. All things that were popular in the 1980s that today make us wonder what we were thinking. Right?

Not quite. While the first two may have been tossed on the scrap heap of bad ideas, faxing remains a vital part of the business world. Despite the widespread popularity of that ‘90s invention – email – faxing is still used on a daily basis to send documents quickly and securely.

One thing that has changed, however, is the way faxes are sent and received. While a fax machine was essentially the only choice back in the ‘80s, today more users are choosing an Internet fax service.

Internet fax services are far more suited to the way business is conducted in the new millennium. Following are some examples of the things an Internet fax service can do that a fax machine can’t.

Let you go mobile. When you use a fax machine, you are pretty much tied to wherever the machine is located. If you’re out of the office and an important fax comes in, you either have to go back to the office or have someone forward it to another machine closer to you. With an Internet fax service, faxes are sent and received through your email account – which means anywhere you can get an Internet connection. And on any device, including your smart phone.

Improve privacy. Fax machines generally sit in a common area since they’re usually shared by an entire department or office. If you receive a fax, anyone walking by can read it. Because Internet fax services deliver faxes directly to your email in-box, the information they contain is kept private.
Increase security. A good Internet fax service adds an extra layer of security by encrypting messages, preventing them from being intercepted by unscrupulous parties. This added encryption is an advantage over sending documents via email.
Keep a team informed. If you’re working with a team and everyone needs to see the document, someone has to make and distribute copies. If some of the team members are out of the office at the time, they won’t see it until they get back. Internet fax services allow you to specify simultaneous delivery of faxes to multiple email addresses, assuring everyone has the information they need.
Keep faxes organized and available. Fax machines generate paper faxes that can get mis-delivered, buried on a desk, or thrown away. Once the fax is gone, obtaining another copy can be difficult. Because Internet fax services deliver electronic files, faxes can be stored on a hard drive or server where they can be pulled up quickly anytime. A good Internet fax service will also archive faxes for several months to a year.
Reduce cost and environmental footprint. Operating a fax machine can be expensive. There’s the cost of the machine itself, plus a dedicated phone line, the cost per call if it’s on a toll-free number, paper, toner and electricity to keep it ready to send and receive faxes 24×7. An Internet fax service eliminates nearly all of those costs completely, and limits paper cost to the faxes you choose to print – all for just a few dollars a month. As an added bonus, the paper and energy savings also help you make your office a little greener.

Let’s face it – fax machines are just so 1980s. If you’re still using one, it’s time to put it in the attic next to your legwarmers and move to an Internet fax service instead.

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10 Tips on Choosing a Home Business

February 1, 2010 By Isabel Isidro 5 Comments

Choosing the right business is critical to the success of your entrepreneurial endeavor. It is the most important decision you will make as you start your business.

Select a business that has no market demand, and you will quickly find your investment into the business disappearing faster than you can ask what’s happening. Or you may want to start a business that you know nothing about, and the learning curve is too steep for you that you find yourself way over your head most times.

Consider your resources and whether it aligns with the required capital of the business. Don’t be too ambitious, especially if you have little chances of raising the capital you need.

Also look at the income potential of the business, and whether a strong market demand exists for it. It doesn’t matter if you are so passionate about the activity, but if nobody is going to buy your products or services, then there’s really no point in starting that business. Look at your lifestyle and determine whether the business fits your needs, as well as those of your family.

If you are planning to start a home-based business, understand the zoning laws and regulatory requirements in your area. You may also want to start a catering business, only to find that your county requires a professional grade kitchen which you do not have. Lifestyle is also an important consideration for choosing the business. You may be thinking of starting a real estate agency, but having a newborn baby limits your time taking clients to see homes and selling your listings, thus severely limiting your income potential.

When choosing the right business for you, passion, income and lifestyle all play an important role. The right business will give you the solid foundation you need to succeed. Read the full article 10 Tips on Choosing a Home Business

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