Having a home based business can be a great experience. You set your own hours, have more time for family and can go to work in your pajamas. Certainly you have heard all the upbeat, feel good positives on having your own home business. However, there are some pitfalls that can cause your business to go belly up before you even get a good hold on your industry. Many of these mistakes can be avoided with a little forethought and some planning. If you know what you may be up against ahead of time, you can combat it. Knowing and preparing yourself is half the battle. Avoiding these mistakes will save you headache and heartache.
1. Starting a home based business that is not appropriate for your home.
Whether it is a lack of work space, storage, inventory or your employees’ work space, you may need to look outside of your home for facilities. As a rule, online businesses and service businesses are typically easier to run from home than manufacturing businesses. Be realistic; don’t let your judgment be clouded by potential tax breaks or low overheads.
2. Lack of focus or motivation.
It is easy to get distracted when you work from home. You may not feel motivated to get up and work, may get distracted by the phone or the kids. You need to set aside time that is specifically designated for your business – and stick to it. Running a home based business is a great way to cultivate self-discipline. You really need to have that self-discipline to make sure you get your work done on time instead of watching TV or doing housework. Dedicate a specific time period only for doing your home business and do not let anything else get in the way of it (unless of course it’s an emergency).
3. You don’t have any growing room.
If your home based business takes off, you will probably get to a point where you need to expand. Expansion of your business may be as simple as adding a computer or new printer or as complex as bringing in more employees. While you are setting up your home business, prepare for eventual growth as well. Be prepared for the possibility of getting an office space if you need to even though you started out as a home business.
4. You don’t spend wisely and don’t budget well.
You may be saving on overheads such as rental when you work from home, but are you spending unnecessarily on equipment or maybe even some little luxuries for yourself? This can lead to over spending and you exceeding your budget. Set your budget and stick to it.
5. You fail to promote your business.
While you are sitting in your home office, wearing your slippers and sipping your coffee, you may get just a tad too comfortable and forget one crucial element for your business success – marketing and promotion. You have to get the word out and promote your home based business if you want it to get sales or orders. In fact, this is the most important part of your business. Unless you already have customers buying from you, or you are spreading through word of mouth, you need to market your business.
6. You don’t have facilities that are efficient or adequate.
When you work from home, it may be tempting to use the family computer or network your computer with the family computer. In a word – don’t. When the kids are playing games and downloading photos, they are using up bandwidth that you need to operate your business. Cut the strings and make your business computer separate from your home computer. All these limitations will make it harder for you to operate your home business.
7. You don’t have a business plan.
Just because you’re starting a home based business, you think that you don’t need a business plan? Having your home based business plan is integral for organization, goal setting and growth projections. If you don’t plan, you could face failure in a very short time. Planning your home business will help you to understand what investments you need to put in and the different aspects of your business. If you get out of course, referring to your business plan can help steer you back to course.
Having your own business can be exhilarating and liberating. Click the link below for a home based business opportunity that comes with the support and instructions necessary for you to market and operate your own home based web business.