Before you begin brainstorming possibel markets to target with your internet business, stip and consoder the following:

1. What are you interested in?
2. What are you passionate about?
3. What subject or topic do you have a lot of knowledge about?
4. What are people always coming to you for advice about?

If you stat your business based on something you know and like you’ll enjoy it more, will stick with it through the tough times, and at the end of the day, truly enjoy it more – while it pays you money.  What could be better than that?

And it will be easier to start you business on something you already know, rather than trying to become an expert (though that’s not too hard either…)

Sometimes I hear that moms think they don’t have any skills or interests…or just their kids.  That’s baloney.  You used to have skills and interests way before you had kids – remember that time…and you still do – they may be new, or it may time to dust off an old hobby.  Are you an expert on getting your kid to eat his or her vegetables, clean her room or get straight A’s or more time on the playing field.  Can you feed a family of 6 on 50 bucks a week… guess what – people want to know how to do that and they might  be willing to pay you for it.

So start with this:

1. Consider your interests, hobbies and areas of expertise.  Think about your life experiences – all the jobs you have ever had  even the unpaid ones, and the volunteer work and the hobbies you’ve tried.  All the times you have helped people and enjoyed it.  Keep a notebook handy and keep adding to the list over a day or two.

Our Next post will be list of questions you can ask yourself to help find your interests and passions – stay tuned.

So how did I do it – I got really serious about studying and finding out what worked.  I also thought about the requirements of my business.  I didn’t want to have to worry about shipping a lot of products (I didn’t want to have to pay for and store inventory, plus it’s not easy to run a warehouse with two little kids around).  I wanted it to be something that I liked and was good at – I wanted it to resolve around my interests.  The business would need to function pretty much entirely over the internet, with internet marketing tools.  Low start up costs, no employees (I do use independent contractors and interns for some things, but I am pretty much a one woman show….)

That’s why I settled on blogging and affiliate marketing.  I decided to start blogs around subjects I was interested in an monetize them by selling other people’s products for a commission.  For some of them, I also sell my e-book products.   The key is to not have to ship a product – I would rather take a smaller cut of a commission or advertising revenue than have to worry about running to the post office or tracking down a ship tracking number.

So how did I find out which areas to start my blogs in?  As you can see, I thought about the business I wanted to create and what attributes it needed – and then decided on the business model that would best suit those needs.   In my next post, I will talk about how to discover what areas are best for YOU (yes you, not me) to start your business in.

Try Affiliate Marketing?  What is affiliate marketing? It’s simple – it’s where you promote other people’s products for a cut of the sales price (your commission).  If you’re thinking that this means you need to buy a sales kit full of jewelry and start asking all of your friends to buy from you, think again.  Internet affiliate marketing is a bit different and you never have to sell anything to your friends or family, unless you want to.

So first, lets talk about some of thebenefits of working as an internet affiliate marketer before we talk more about what and how to do it.  This way you can decide if it’s right for you.

Benefits of Affiliate Marketing:

1. No Manufacturing Costs – the costs to develop a new product are expensive and usually beyond the reach of someone looking to work from home and make money online.  In affilaite marketing you are selling a product that has already been created and proven in the market.
2. Low Cost Set Up – even setting up a simple online store and stocking it with inventory can cost several thousand dollars.  With an investment of tens of dollars you can start on affiliate marketing in your spare time
3. No Employees – For many moms, the want a flexible job or business where they can still manage to make money and have time for the kids – which is why a work from home internet business sounds so attractive.  The last a mom wants to do is to start a business that requires employees.  Affiliate marketing requires no employee and still allows you to make money online.
4. No Order processing or merchant accounts – I know lots of moms who started online stores and got orders.  And then had to fill them – at night, on the weekends, at holidays – all for a very small margin.  And while it was thrilling to them to make money, they were working pretty hard for just few dollars profit – and spending time away from their families.  Not to mention the hassle of returns, and setting up a merchant account.  With affiliate marketing, all this is taken care of for you.
5. Make Money Online While You Sleep – yes, if you’re affiliate website is out there on the internet, it is working for you 24/7.  Somewhere, someone is online who will be interested in a product you are promoting and will buy it – and you have made a commission while you sleep.  It doesn’t get any better than that.

So is affiliate marketing the right way for a mom to make money online and work from home?  Yes, it’s can be one of the best ways to have the best of both worlds – time with your family and an income.  See our next posts for more about what affiliate marketing is and how to do it.

If what you’re looking for is some flexibility (rather than say, more money), becoming a freelancer might be the perfect way to go – on the one hand there is no learning curve for your own business.  You will have to become good at marketing yourself and some administrative tasks (like tracking expenses) that my never have entered your mind before.  But you won’t be like the mom who was an IT Project Manager who decided to start up a line of t-shirts (umm see the About section for more on that silly mom).  In that case the mom was learning everything from what makes a good t-shirt design, to web design, shopping cart selection, online marketing, networking and t-shirt production capabilities.  It was an overwhelming amount of information to take in, and a lot of mistakes were made, which is why, quite frankly I started this blog – so you don’t make them too….

But hey, I get it – as an IT project manager I was done – I couldn’t imagine this being my life long career, so I was compelled to go forward and start my business from scratch. Ha!  But you dear reader, are much smarter. You’re going to think about leveraging your experience as the foundation of your business.

Now, say you’re pretty certain your day job is not the foundation for a business you want to be in – what are you going to do?  Dig deeper to come up with an expertise to start your business in.   How, you wonder, can you turn your skill in re-upholstering flea market finds into a  business (without having to start re-upholstering 100 chairs a month?)

It’s called information product marketing.  I love this idea, and have been experimenting with it on GirlMogul — with a pretty good amount of success for reasonable amount of effort.  Information product marketing is fairly simple – it’s when you have a skill or know how about something that other people want to acquire.  You create a product – usually digital – like a pdf document, a how to video, etc and showing people what you know and you sell it to them.  Over the internet.  You create the product once.  It’s virtual, not physical and you can sell it over and over again.  Your main focus, once the product is complete, is finding customers.  And what’s one of the beauties of it – selling something that you never have to carry inventory for, or pack up and ship and take the UPS store or the post office.  Beautiful.

In fact a lot of internet marketers recommend you starting with an information product because the start up costs are mostly time and effort on your part – not money.

Still, you’re probably wondering – what kind of expertise do I have that I could start a business in?  The fist question is to think about what you know and are good at.  Do you have a hobby, a skill, a knowledge about collectible dolls from the 1980s?  Once you list our everything and I mean everything you’re good at, then it’s time to find out if your interest is one in 20 million or 1 in a million.  Because with the power of the internet and it’s broad scope, if enough people online are searching for your expertise, then you can sell it to them.

Watch out for more on information marketing.  And if you have a traditional business like a children’s clothing retailer – don’t discount information marketing – I think there are some valuable lessons to be learned from it to help grow your internet search engine presence and subscriber list.

Now, you do read about people who start businesses for $500 or less.  How?  Well, in that case, it seems like they are starting a service business – marketing services, freelance writing, cleaning business.  Their initial start up costs might consist of business cards, some flyers, a cell phone and an internet connection.  So if you’re considering a service business, the overhead and start up costs can be low – especially if you have an in with your first clients (your old boss at the advertising agency, aunt Mildred’s friend’s niece who needs a housecleaner) etc.

However anytime you start selling product, your costs go up – in addition to the business card, cell phone and internet, don’t forget the cost of the inventory or merchandise you are selling.  Usually you will buy $5 and be able to sell something for $10.  So the $5 is your profit but must be spread out across the other “marketing” expenses you incur.  Some exceptions – direct sales companies, like Avon cosmetics or Lia Sophia jewelry – you might only start with a very small amount of inventory as a sales kit – but most sales are done from a catalog and you never have to actually carry inventory.  This is why the direct sales model is so enticing to moms with a yearning for their own business but little money to start one up.

If you get into creating products and selling them, consider how you will pay for and source the inventory.  If you want to sell t-shirts, before you go off and get a 100 t-shirts created (like I did), consider using Zazzle or Cafe Press to have some made up with your design, getting feedback and then altering before committing to carrying inventory.  You can even create a complete shop on Zazzle and Cafe Press – they do on-demand printing of t-shirts and other products with your design – you set up the designs, and drive traffic to your store.  You make money with the difference between their base price on an item and what you charge for it.  You won’t make a 100% markup, rather 10-20% (translating into a few dollars a shirt) it the norm.  You have to have a lot of buyers to make this work, but if you’re a designer and all your graphic work is free, then this can be a great way to monetize your skill without having to become a manufacturing expert.

when I started, I made sure I spent less on inventory so I had money to spend on advertising. If I could have a do-over I think I might have done a few (well a lot) of things differently.  By having it in my head that I could spend money on advertising for my business I spent it in the wrong places.  I should have focused on finding free advertising like word of mouth. I should have started blogging sooner and gotten very creative about ways to build my email list faster and bigger using low cost techniques.

So in summary, when starting a business, keep in mind some businesses, like one where you plan on retailing products (through an internet store, craft fairs) requires money for inventory.  Even if you’re a crafter you still need to buy supplies.  For service businesses, start up costs can be low – no inventory, just some marketing and set up costs.  If you’re a designer who wants to create her own line – check out Cafe Press and Zazzle and see if you can use on-demand printing to avoid the high costs of inventory and fulfillment.  And of course, definitely consider direct sales as a possibilty.

So what are some ways you can carve time from a hectic schedul to run your business

1. Use your time wisely – are your kids in school – well then perhaps you have several hours each day to work on your business.  Use that time wisely and keep it sancrosanct.  Don’t let your neighbors drop by for coffee, don’t let your mom call you on the phone. Don’t do laundry or empty the dishwasher.  Work when you’re working.  If you have 4 hours, then work for 2 or 3 and use the last one to do chores, asnwer phonecalls or chat with the neighbor.  Keep the schedule of working hours posted and stick to it.

2. Invest in a good communication device – depending on your business your probably spend a lot of time on the computer, probably using the internet (email newsletter, list building are just some of the computer-internet tasks that come to mind), answering email or designing marketing material.  Consider web enabled smart phone or a net book or laptop with an air card or wi-fi so you can connect anywhere (an air card lets you connect without being near an internet hotspot). You can do your work while you’re waiting at practice or other downtime (no we’re not suggesting you miss your daughter’s winning free throw, just simply suggesting you use your valuable time wisely to do your business).

3. Hire a cleaning service.  I know you’re probably thinking you can’t afford or they never to as a good a job as you do.  And while that may be true, it’s not the point. Time you spend cleaning is time you’re not spending on your business.  Can you afford not to?  Even a once a month service will take some of the burden off of you

4. Change your definition of – how clean you keep your house, what a home cooked meal is, etc.  Employ short cuts to save time to give you the time to build your business – after all, if that’s the alternative to having to work a 9-5  job, then no one will object to a few dust bunnies, right?

5. Get help – Consider outsourcing – again your complaint may be money or it may be that you’re such a control freak you can’t let go.  You can’t do everything and you’re not an expert in everything.  You will also drop dead of exhaustion if you attempt to do something.  Consider hiring an intern (unpaid or cheap), a virtual assistant or other freelancers to help you do something.  If you’re not a graphic artist, don’t attempt to photshop your logo yourself.  Graphic art services are not that expensive. Writing, web design and other services can be had – shop around, compare prices and check out Guru.com and eLance and post a project to see what turns up.

Remember – as a mom you’ve given everything to your family.  Now it’s time to be a little selfish in order to make your life (and that of your family) better.  Take the time to invest in yourself and your business will grow.

So, before you get started, ask yourself why are you doing this – are you looking to make a little extra money?  Quit your day job, stay home with the kids and still earn some money?   If these are the things you’re looking for, then maybe a different entreprenurial venture has your name on it.  But let’s go back.  Say you have an idea and you just have to bring it to the world.

What kind of product is it?  Is it’s the world’s best organic cookie?  Well then it might be easy enough to start your business – after all, all you need is your ingredients and people who like cookies.  Say you have an idea for a great new line of sassy and fun t-shirts.  You just have to get them made up – again, your start up captial might be more than a batch of cookies,  but custom t-shirts are still pretty inexpensive to make.

Of course the problem with these ideas – loads of competition – which is both good and bad.  Good because there is a great deal of demand for these products.  Almost everyone will buy a cookie or a t-shirt at some point.  In some cases you won’t even have to market that much to them, because they will wake up one day and want the cookie.  Bad, because there is a lot of other people with a great chocolate chip receipe and cute t-shirts.  You will need to cut through the clutter to make your mark.  Your success will mean you need a great product of course, but it will also be about how well you manage costs, how many people you reach, etc, etc.  You might never become the next Mrs. Fields, but maybe you can pay for the business and leave a little something on the side.

But, what if you truly have what you think is a new invention, a brand new product – something that deserves its own infomercial? Well the good news and the bad news – lots of other people have these ideas too.  Of course if your product is so new, people may not know they want it or need it.  How complicated is your product? How many people can this help – is this only for mothers with brown hair and blue eyes with kids between the ages of 0 to 1?    Sometimes a great invention is just great – for you.  And that’s ok.

On the other hand, the retailing world loves new products.  Retailers thrive on them and want to add new lines to their stores to keep customers coming in. Trade shows exist to show off your product.  You can even go to trade shows with samples, right up orders on the spot and order your inventory afterwards.

In other words, there are lots of ways to start a mom and family friendly business.  When I started, I was convinced I had a totally new idea – girl power t-shirts.   On the one hand I did.  No one else was doing it at the time.   And therein lay one of my first challenges.  No one, tween, mom or kid woke up and said “Wow, what I really need today, is a girl power t-shirt.”  Sure people loved the idea when they heard about it, but no one was searching for exactly the type of product I was selling.  It made it hard to pin my market down.   But there are ways around it.  And if you truly have that great idea, the next big invention or just the newest in mommy haute couture wear – don’t be afraid to go for it.   Just remember some paths to business success are longer and harder than others – but they are often the ones that yield the biggest rewards.

1. Are you starting a business to make some extra money?

As a mom, your prioriy motivation may be to start a business to earn some extra money.  You may only need a few hundred (or thousand) dollars a month in profit.  In other words, the business is not intended to be your family’s some means of support.  You’re looking to supplement a regular monthly income (your spouse’s) and you probably don’t need to worry about health insurance. On the one hand you’re in an enviable position.  You can start a business with no great hopes for it being the next big thing.  But it’s important to keep this in mind… remember you are starting it to make a little extra cash, quickly.  In other words, you don’t want to go into a business that will take a lot of capital to start up – yours or someone else’s.  In order for someone to loan you money, they will want to see proof that your returns – i.e. revenues will pay back the loan – in other words, they probably won’t be too satisfied with a few hundred dollars a month.   Also, if you’re only looking for a small business to start, be careful of startup costs all around. Use your own (or your family’s money) wisely.  Remember this….if you’re selling products, you generally can get them for half of what you can sell them for. Of course once you have volume you may get discounts.

For instance, say you want to make $500 extra dollars a month from your business.   You plan on selling Blue widgets.  You can get blue widgets from the wholesaler for $5.00 a piece.  You look around, and it appears you can sell blue widgets for $10 to be competitive.  That means you will make, at a minimum, $5.00 per sale.  You will need to make 100 sales a month, in order to get your desired profit. (100 sales x $10 = $1000 in revenue minus $500 in inventory).  Of course in reality, you probably spent something in marketing costs, so that means your profit will be lower or you will have to sell more widgets.   In order to sell 100 widgets a month, you need to plan on averaging 3-4 sales a day…not to mention the time you put into making those sales (did you have to hire a babysitter to watch the kids, etc)

Are you discouraged?  Don’t be.  Anything is possible, and starting a business is a great way for moms to help their families and find an outlet for their talents.

So what should you do if your goal is to make a few hundred dollars a month?

- Consider direct sales (a.k.a multi-level-marketing or MLM) or a home party businesses like Arbonne, Mary Kay, the Pampered Chef, Lia Sophia Jewlery,  Stella & Dot etc.  These businesses allow you to start with little or no up front costs and you work your network to sell item – the company provides your with many fo the marketing tools right off the bat, so truly your biggest investment is time

Evaluate any ideas carefully – go to parties, sample the wares, ask representatives about the company.  One thing I think is key – selling a product (like makeup) that runs out – so people automatically re-order from you – you get the customer once and keep them. Also, truly successful people in home party sales focus their attention on building their downline – their own network of consultants they sign up, mentor and encourage – as the person at the top of a downline, you keep a percentage of all of their sales – and anyone else they might sign up.

- If you’re a crafter – consider doing craft shows – one or two weekends a month of attending a show might be all you need to make your few hundred dollars.  Make sure you have a system for capturing leads (contact information) from people who stop by but don’t buy and you might be able to build a business that doesn’t rely on going to shows.  You’ll spend time making your items, and have to invest in some basic set ups – like a tent, table, chairs and show fees…

Sales professional – Consider real estate agent (if not now, sometime in the future), insurance sales, or financial planner…

Hope this has helped you think about what business might be best for you if you’re looking to supplement your income.  next post we’ll talk about some business ideas to avoid if you’re looking to just make a few bucks.

1. Are you starting a business to make some extra money?

2. Do you have a great idea for a product or service that you are sure the world needs?

3. How much time away from the kids do you have to start the business?

4. Are you an expert is something – anything?

5. How much money do you have to start your business?

6. How much money a month can you afford to dedicate to your business?

7. How big is your circle of influence?

In our next post will be looking at some of the possible answers to these questions to guide in what kind of business you should think about starting…

Park IT Guide

In addition to running her business, Margot’s past includes stints on a sailboat, cattle ranch and winery. Be sure to read more about Margot Tohn at Park It Guides NYC.