Outwardly, a home-based business might appear to be just another easy source of some extra income. In reality, however, it can be extremely taxing and yet, cannot guarantee success.
Like any other form of business, home-based business too has a few potential pitfalls which can send all your efforts, time and money down the drain.
Knowledge of these can assist you in steering clear your way to success. Here is a list of blunders that should be avoided in home-based businesses.
1. Doing Business for Wrong Reasons
If the reason for a home-based business is not right, you cannot get anything else right either. It is imperative that you work because you enjoy doing so and not only because it is lucrative.
‘Money’ can never be the right reason for starting a business, simply because of the reason that it is incapable of motivating you to put in the best of your efforts for too long. But if you enjoy what you do, motivation is bound to come from within.
If you are working for the sole purpose of earning money, chances that you will soon give up is pretty high, primarily because your earnings are bound to be low initially.
Further, your passion for work reflects on your end product/service, which too is sure to suffer if you are not driven by passion.
2. Treating it as a Hobby
Although you must love what you do and feel passionate about it, remember that your home-based business is not your hobby.
Be clear that it is work, and not just any other way of passing your time. Therefore, assign it the seriousness that your work deserves.
The mere fact that you are operating your business from an unpretentious set-up of your own home does not make it any less important.
3. Unrealistic Expectations
Do not expect too much too soon from your business. Be realistic in your approach and set goals accordingly.
Setting unrealistic goals can lead to disappointments at a very early stage in the business and can subsequently urge you to quit the game, a little too soon.
Don’t expect your home-based business to be an all gain and no pain affair. In fact, you must get yourself ready, both mentally and physically, to do everything yourself, right from establishing your business goals and objectives related to planning, marketing, maintaining the books of accounts, and executing the plans.
You also need to have an aggressive approach and not a passive one for spelling out success.
4. Lack of a Business Plan
No successful business can start without sufficient planning for the same. A business plan will aid you in understanding where you are right now and where you wish to be in a given time frame. It thus provides a direction to your efforts.
Your hard work in the absence of a business plan will be useless. Hence, it is imperative that you, as an entrepreneur of your business venture, obtain a business plan before kick starting it.
5.Lack of Market Research
Basing your marketing decisions purely on your gut feeling is like serving a chicken burger to someone who is looking for an apple pie, completely bizarre and senseless.
How can you serve your customers well if you don’t even know as to who they are, or what their needs are?
A thorough research of who your target customers are, what are their wants and where are they located, will give you a better opportunity of understanding your potential customers and subsequently carving a niche for your products.
It will prepare you to meet the numerous challenges put forth by your competitors and help you to convert these challenges into opportunities.
6. Underestimating Value of Advertisement and Publicity
Never make the mistake of considering promotion a needless expenditure. It is a truly important investment, the benefits of which translate in terms of higher sales and profits.
Actually, the larger your reach the better it is for your business. You could even look out for the inexpensive options of publicizing your business.
7. Being Unprepared to Face Economic Downturn
Factors such as an economic recession, is beyond an individual’s control. So, the best strategy is to have a contingency plan ready so that when an economic downturn hits, you know what exactly to do, and are not overwhelmed by the circumstances.
It will be prudent on your part to be vigilant and keep all your senses fine tuned to pick up clues of an oncoming economic catastrophe. This way you will have sufficient time to react and will not be caught off guard.
Remember, Rome was not built in a day, and neither can your business be. It will require a lot of hard work and perseverance to start a home-based business. But, if you have done your ground work right, it is a matter of time before money and success start pouring in.