Help! My Home Business Isn’t Making Money

5 Tips to Increase Income in Your Home Business

Nurture Your Business and Watch it Grow. PhotoAlto/Ale Ventura |Getty Images

April 8, 2015

Starting a home business is an exciting time filled with ideas and hopes for a prosperous future. But for too many home based entrepreneurs, the reality involves worry and financial struggle. If you’re home business isn’t growing and producing results, here are tips to get it in the black.

1. What’s not working. The first step in fixing a problem is to figure out what it is. Assessing what’s going on in your home business is crucial to achieving success.

There are many things that go into making money in a home business, such as:

  • The product - Is it something people really want or need? Is it good quality and packaged well (package can be actual wrapping or the website from which it’s sold)? Is it priced right?
  • Marketing - Are you reaching enough people? Are you targeting the right people? Are you using language that will entice them to check out your business?
  • Sales - Is it easy to buy? Is there a call to action? Is the copy or pitch consumer (benefits) oriented?
  • Business - Have you set up your business correctly? Did you price your product/service to cover overhead, as well as to earn a profit? Did you fund your business adequately?

To figure out where things are going wrong you can look at your data. Do you have a lot of returns or refunds? Then maybe the product/service needs to be improved or the price lowered. Are you getting a lot of visits to your sales page, but not making sales?

Then your sales copy needs to be beefed up. Are you getting no visits or inquiries? Then your marketing plan needs an overhaul.

2. Develop a new plan. Based on what you discover, it’s time to fix the issue. Look at ways you can tweak or revamp the source of the problem. For many beginning home based business owners, the two major problems are in marketing and sales.

So as you move forward, make sure these aspects are working for you. To do that, you need to know what’s great about what you offer and how it can help your customers and clients. Next you need to insure you’ve targeted the market correctly. In both your marketing and sales (either sales page or in-person pitch), make sure you’re focused on how what you do or offer will make your clients’ or customers’ lives better.

3. Hold tight to the purse strings. It costs money to run a home business, but it doesn’t have to cost a fortune. Take a look at your finances to figure out where you’re money is going. Are you reinvesting a portion back into your business to help it grow? Are there things you’re paying for that you’re not using or maximizing? Are there products or services you’re using for business that can be had for less money? The less you spend, the more you get to keep, so scrutinize your financial statements for areas you can save money.

4. Get rid of deadbeat clients. If you have a service-based business with clients who are slow to pay, implement strategies to entice them to pay on time or fire them. It’s a waste of your time and money to chase people who aren’t going to pay. Instead, spend your time finding clients who’ll pay what your product or service is worth on time.

5. Review your monetization strategy. This is especially for bloggers and other online entrepreneurs who aren’t selling their own product or service. If you’ve put all your eggs into one method of making money off a blog or website, perhaps you need to add another. For example, relying solely on contextual advertising, such as Google Adsense, can be a mistake. While these sources can generate a lot of income, an algorithm change can reverse that overnight. There are many ways you can generate additional sources of income, such as through affiliate programs or creating your own product. Further, check that what you’re offering is what your market wants. If you’re a blogger, check your analytics for your most popular posts, which will give you a clue as to what people want to know about. Then check to see if your monetization offers match.