“Starting a home-based business can be an exciting venture. Get started cheap, and make big money overnight.”
Not really. Starting a home-based business has many advantages such as inexpensive start-up costs due to the lack of office space needed, but it’s still a business just like any other business. As such, you have to do business like things if you really want to make it work and been seen as more than a hobbyist. If you really want to start a successful home-based business, here are some common mistakes to avoid.
Failing to do your due diligence – It’s important to do as much research into your business idea as possible. You cannot know whether it will work if you’ve not fully studied the current market for your products and/or services. If you don’t know who will buy what you’re selling and how you’ll find these people, it is not worth getting started until you do.
Failing to choose a niche – Many people start a home-based business without choosing a niche. Your niche is what is going to help you determine who your target audience is, and what kind of products and services they need. Without choosing a well-defined niche you’ll really just shooting into the wind hoping to capture a buck. Pun intended.
Failing to create a plan – You’ve heard it before: “Failing to plan is planning to fail.” This is true for all business types, including home-based businesses. Even if you create only a one-page business plan, it is important to have a plan that covers information such as your business name, your social media accounts, and your website URL. It also answers what problems your business solves and how it is solving them. You’ll know what your unique selling point is, who your competition is, and how you’ll market yourself.
Failing to legitimize your business – Many people start a business without getting the proper credentials and licensing. This is a big mistake as you can be penalized by the government for doing this and it could end up being a business killer.
Failing to know the law – This is especially important if your home-based business deals with money, health, cosmetics or the food industry. But, in any type of business there are laws that you need to understand. Today you can find information online about most business niches, but you may need to talk to a lawyer to be sure.
Failing to hire experts – Many home-based business owners make the mistake of not hiring experts as needed, such as certified public accountants, lawyers, bookkeepers and web designers. It does depend on what type of business you are starting, but don’t cut corners on important aspects of your business. Even though it’s a home business you want to be taken seriously.
Failing to market the business – Without a marketing plan you cannot have a home business. You might get away with that a little bit with a bricks and mortar business in a busy mall, but you cannot get away without marketing a home business. If you don’t market they won’t know you exist.
Failing to persevere – A home-based business can take time to build up to the profitable state you want it in, and you’ll need to actively work on your business each day in order to make it happen. As long as you’re putting in the time and did your due diligence you can make it work.
By avoiding these mistakes often made by home-based business start-ups, you’re more likely have a profitable home-based business that you can be truly proud to call your own.