Are you a home business owner or thinking about working for yourself and starting a home based business? If so, then you have to read the following mistakes that most home business owners make. These mistakes can cause many home businesses to fail within the first year.
1. They Treat Their Job As A Hobby
Most people who want to start a home business are looking for an escape of the daily grind. Of course the idea is awesome, but you need to keep in mind that a home business still takes a lot of work. If you are going to treat your home based business as a hobby, then you might as well keep your day job, because you won’t be making a lot of money to cover your bills.
Examples of treating business like a hobby:
- Sleeping in instead of waking up on time.
- Not completing all of the scheduled tasks.
- Going out with friends during set work hours.
2. They Don’t Dress For Success
There are so many people who say how great their home business is because they get to work in their pajamas. Sounds awesome, right? Wrong! Dressing up for success and putting on clothing that you would wear to an outside of home job set the tone for the day. Pajamas and messy hair set the tone of lounging and not being productive.
If your body and mind are in a relaxed state, then it’s likely that you won’t complete your tasks. No work means no pay, so get dressed for success.
3. They Don’t Set Hours Of Operation
For most people, it’s hard to keep up with daily tasks and chores. Throw a home business into the mix and the schedule gets extremely crazy. Not setting hours of operation is the biggest mistake a home business owner can make.
Instead of randomly working throughout the day, take a look at your schedule and figure out how many hours you can work per week. Then, divide those hours into the number of days of the week that you are planning to do your work. Once you’ve figured out how many hours per day you are working, set specific time frames. If you have blocked off 8am to 1pm, then do not do anything else but focus on your work during that time slot. Of course, schedule your break time as well. Try to take about 10-20 minutes every hour to sit back, relax, take a restroom break or drink some water.
Tip: set your alarm for the time you start and finish work, as well as for all of your breaks in between.
4. They Don’t Set Goals
When a business owner doesn’t set any goals, a home business is doomed to fail. Goals help business owners be focused on tasks. Without goals, they are in the dark about how to run the business, what to do next, and how to reach their full potential.
Every home business owner should set short and long term goals. The short term goals will help to understand exactly what needs to be done each day/week and long term goals will give home business owners a vision and a passion to work towards something great.
Examples of specific short term goals:
- Write 2 blog posts per week.
- Share business with five new people per week.
- Sell X amount of products per day.
- Interact with customers on social media daily.
- Read 10 pages per day.
Examples of specific long term goals:
- Earn X amount of money this year.
- Add X people to my mailing list this year.
- Read 10 personal development books this year.
5. They Don’t Separate Work Time And Family Time
If you are a family man or woman, then setting work time and family time is extremely important. There is time for work, there is time for play, and there is time for family. Not separating these different times can lead to a lot of stress and discontent, both for you and for them.
Your family has to understand that when you are scheduled to work, you have to work. Share your schedule with them, so they know exactly when your working hours are. Similarly, when your working hours are over, don’t go running to your computer or making business phone calls.
6. They Don’t Provide Value
Many businesses fail because they constantly advertise, but don’t provide any value. Of course a big part of any business is to advertise and sell products, but in many cases it’s even more important to provide value to the customers.
Customers are looking for answers to their problems. They are seeking someone to relate to them and show them how their problem can be solved.
Here are a few of ways you can provide value to your customers:
- Give away a free e-book.
- Shoot a series of “how to” videos and give them away for free.
- Post something useful or inspirational to your blog or Facebook page.
- Ask questions and then answer them in timely manner.
7. They Don’t Grow A Social Network
Any business without a social network is likely not to survive for too long. A good social network is the bread and butter of a home business. A lot of new business owners are scared to get into social media because it’s a new frontier for them.
The more people you know and can share your product information with, the faster your business will grow. The best way to get to know people is to get on one or a few of the social media websites like Facebook, Google Plus, LinkedIn, Twitter and Pinterest. You can even give out your social media profile information to local people, so they can add you or friend you online.
You wouldn’t call all of your customers to remind them about sales, to give them coupons, or provide them with value on daily basis. Yet, you can easily do all of these things if you are connected to them on a social network, which means more sales for you.
Adding all of your contacts to an autoresponder, such as Aweber, will increase your reach even more because you will be able to deliver your messages straight your customer’s mailboxes.
8. They Don’t Create A Business Website
Although not all home businesses will fail without a website, it’s very hard to grow a business without one local place where all of your your products and services can be previewed. A website can bring new customers who live outside of your town, outside of state, and even outside of your country.
A business website can give you the following advantages:
- Display your products and services.
- Help customers find you on a social network.
- Provide value through blog posts.
- Give away your digital products.
- Capture your customers’ email addresses.
- One local place to send everyone to for more information.
- Access to non-local population.
- A website can work for you 24/7, even while you are sleeping.
9. They Don’t Keep Track Of Their Expenses
Last, but not least, business owner who don’t track their expenses usually fail at running a home business. A lot of people put way too much money into a business, but don’t cover all of their costs by selling products and services. Knowing how much money goes out and comes in is crucial to sustaining a profitable business.
Additionally, every home business owner can write off business expenses. If you don’t keep track of how much you are spending, you may be losing tax money at the end of the year. There are a number of different software and apps out there that you can use to track all of your expenses. Simply type “business expense tracker” into Google and you will be able to find different options that will fit your budget or even be free.