Home-based sales

Every small company is in the business of building and maintaining its customer base. This objective is even more vital for home-based businesses, which continually straddle the line between "too-much-to-handle" and "not-enough-to-live-on" business. How do you go about establishing a steady flow of customers?

Utilize your marketing plan: Second only to the business plan is creation of a detailed marketing plan in fact, I often suggest that entrepreneurs develop the two simultaneously, because these documents serve as road maps for determining the path your company will follow. Your marketing plan will help you identify potential customers, recognize gaps in the products and services offered by your competition, and will assist you in determining the best outlets for reaching your customers.

Start with who and what you already know: Many home-based business owners launch their businesses while they're still employed by another company. This approach gives you time to build a substantial enough customer base and bankroll to survive during the early days of solo operation. This "in-between" period of time before you formally launch your business should include taking full advantage of your existing business networks of friends, colleagues, co-workers and clients. While it wouldn't be seen as ethical to "poach" clients from a company you're currently employed with, there's no professional faux pas in asking for referrals and for help putting the word out when you go 100 percent solo.

Up-sell your existing customers: If you're successfully selling shoes to Company A, pitch them a sock account ... then a shoelace account ... then a shoebox account. While you don't want to continually hit up existing customers for more business, the simple fact is that people like doing business with people they know. If you can successfully add on or integrate new products or services to an existing line, let your current customers be first in line.

Ask for referrals: Having an "in" to a potential new client is far more effective than cold-calling. If you've got happy customers, don't hesitate to ask them for referrals. In return, offer referrals of your own when you can.

Be part of professional organizations and events: Joining business organizations and specialized professional groups can help you build a presence for your business. Even if you don't pick up new clients right away, remember, you're doing something equally as important establishing your business and starting to build new relationships that will likely become profitable down the road.

Keep networking: Operating a home-based business is often a solitary pursuit. Don't let yourself get so immersed in running your business that you lose touch with professional contacts or stop attending networking functions. It's important to see and be seen, even if only in a select number of networking forums.

Start with simple marketing initiatives: Just as you need basic office equipment to launch your business, you also need basic marketing tools to promote it. Start simple and look for niche markets specifically-targeted groups of potential customers that fit your customer profile. Some easy areas to launch: a Web site and social media forums such as LinkedIn, Facebook and Twitter. All will allow you to start building in cost- effective components such as business blogs, e-mail marketing and online newsletters.

Remember, when you're a sole proprietor, you're personally linked to your business, so exceptional customer service must be priority one. Recruit customers with realistic promises, follow-through on your word, and do all that's necessary to maintain your reputation for quality product, service and delivery.

In next month's column, we'll examine tips for managing your time and staying motivated and focused while working from home.

Dave Archer is chief executive officer of Nevada's Center for Entrepreneurship and Technology. Contact him through www.NCET.org.