Home Based Business And Mistakes People Make

by Linda Costopulos

Just like anything else, impulsively jumping into a home based business without thinking it through first can result in disaster. A business needs to be well thought out and organized; it is not a venture that can be up and running overnight. There are quite a few common mistakes that people make when deciding to work from home and arming yourself with the knowledge of what they are can save you some time, energy, and money.

The first mistake most individuals make is thinking that working from home is right for them. If you live in a two bedroom apartment with a spouse, four kids and a dog then you may want to either move into a bigger house or stay in the job that you already have. There is no way with that many distractions and such limited space that you can possibly be successful working form home. Similarly running a business that requires you to stockpile products in your garage, basement and extra bedroom may not work out that well either. Check into drop shipping or some other sort of business before placing an order. You may also be the type of individual who needs social interaction and working from home may be too reclusive for you. You really need to address all of these issues before making any decisions.

Another home business killer is a lack of motivation. Working from home does not mean that you will have all the time in the world to do whatever you want. As a matter of fact plan on working more in order to get your business off the ground and successful. Schedules can work wonders to get you focused and on the right path. To do lists and dry erase boards can also help to keep you focused and in the right direction so as not to waste time and energy on useless tasks. You will have top drive yourself to succeed and it will not come easily.

Many individuals justify the increased spending when owning a home based business with the fact that they have no overhead. Well that makes no sense because they did not have overhead with their regular job either. Be careful not to start spending your profits right away. Unforeseen circumstances may arise and you will need to have some cash on hand. Also in order to expand your business youll need some capital to do so, if youve spent it all your business will begin to stagnate and become less and less profitable.

Another mistake many make is not advertising their business. If you want to make money then people have to know you are there. Be sure to set aside some of your start-up capital for marketing expenses. Advertising your business can be as simple as posting flyers around town or as elaborate as daily newspaper ads. Just be sure to include some sort of budget for marketing your new business.

Another problem that most new business owners run into is where to entertain clients when they want to meet to discuss business. This is why designating an area of your house as a separate office, exclusively for business is so important. You do not want to have potential clients fighting off your dogs at the front door and climbing over kids toys in your living room to discuss business in your extra bedroom. Then again you may not want to entertain clients at all. That should be no problem, just meet them at their office or for a working lunch. You would be surprised at how many people understand that working from home means working from your home and that you do not have business meetings there.

Last, but not least is that you must have a business plan. Without a plan you will be floundering from one task to the next with no organization. Plus a business plan helps you budget your start-up capital and enables you to set goals for the future. Seeing your home business in writing also creates a more firm commitment to the task ahead. You can download sample business plans online to give you an idea as to how to write one for yourself.

You will make some mistakes in the course of running your home based business, but hopefully you can avoid some of the most common ones by doing your homework and making some solid plans.