Many folks dream of having their own business; even if it’s small in size to start with, due to numerous personal reasons. Although, it’s convenient that you can function in the privacy of your abode and that too at your own leisure time; however, it’s not all that simple. Most of the home based business owners fail to look into some of the common mistakes that they might make.
Below are the top 10 blunders that most of the new entrepreneurs are most likely overlook.
Poor market research:
Most of the businesses fail due to lack of demand for their goods and services. An extensive market analysis is of great importance; especially for a home based business, since a few ventures accommodate themselves perfectly to the home-based surroundings, whereas some don’t.
Lack of motivation:
There are many distractions especially in running a home based business. Therefore, it is advisable to treat the home business in the similar manner as you would have treated an office based enterprise so as to attain the goal you desire.
Poor time management:
Working at home can be of great help as you have all the time in the world and you can also work according to your suitability. But since, there is no one to supervise or guide you, the time management goes for a toss. You will not be able to manage the time properly as there may be distractions of visitors dropping in at an unexpected time and other such situations which may take the focus off work.
Forgetting the 80/20 philosophy:
Mostly people fail to realize that 80 percent of business comes from the 20 percent of the existing client base. Keep in mind that it costs you twice to get new customers than maintaining your present clientele. Thus, of running a home based business, the 80/20 principle should always be adhered to.
Poor promotion of business:
When a business is home based, owners get too relaxed and in this duration, they fail to promote their business. Due to this, they are unable to build a customer base. The best way to promote your business is through email newsletters, building a website, attending conferences, industry related events, etc.
Lack of a business plan:
Even if it’s a home based business, it is advisable to have a business plan. A business is supposed to be taken seriously no matter from where it is operated.
Being confident helps to boost your business to a great extent. However, when you start to neglect the activities that are required for the sale of your products, your business will suffer losses. Therefore, overconfidence should be avoided if you are looking forward to flourish your business.
Unwillingness to Leverage Professionals:
Most of the business owners are reluctant to employ a broker as they feel they can run the business all by themselves. But as a matter of fact, a broker will help you to get the additional 10-12 percent sales price as he can handle the tasks as preparation, presentation of the business to potential purchasers, marketing and making the necessary negotiations.
Being Extravagant With Your Capital:
In the establishing phase, you may be flooded with capital, but it is advised to avoid unnecessary expenditure as squandering your hard earned money on things you don’t need, is not a very good idea. Instead saving it for the rainy day, is the ideal thing to do.
Not having a contingency plan to deal with tough economic times:
No matter how hard you try, there will be hardships when you are running business from home. Every home based business person should draft contingency plans or fall-back scenarios. This will ensure that you have a cushion in times of emergency.
Thus, if you try to avoid these basic mistakes, you will definitely have a flourishing business and make big bucks, right from the comfort of your home.
(photo credit: Inmagine)