Hewlett-Packard, Google, Apple, and Amazon are worth billions today, but what they all have in common is that they were started in someone’s garage. In other words, they were launched as home-based businesses, and their success stories are a source of inspiration for many entrepreneurs around the world.
However, not everybody can be like Jeff Bezos. The numbers show us that about 90% of all startups fail, which tells us that most entrepreneurs don’t make it past the three-year mark. Starting a home-based business is baffling and overwhelming for the inexperienced. So, if you’re determined to make it in today’s competitive landscape, you better avoid these common mistakes.
1. Lack of Focus
Nobody can focus on everything, and trying to do it is a huge mistake. If you’re just starting out, it can be difficult even to know what to focus on, which is why it’s important to have a mentor as he or she can help you focus on things that bring the most results. When you’re getting started, eliminate the unnecessary, simplify everything, and focus on revenue because you need to bring more money into your young company.
2. Going in without a Business Plan
You had read somewhere that the most important thing for running your company and following your dreams is passion. And it’s true; when hard times hit, that passion is often what keeps you going forward. But without a reasonable plan for achieving your goals, both you and your passion will end up working for somebody else. So, take the time and effort you need to plan the business and state all the objectives you want to reach. You can’t treat your home-based business as a hobby, just because you’re running it from your home, and expect to make it big.
3. Not Working in a Separate Space
Even if you’re not living in a spacious home, you should still dedicate an empty corner in your living room or an unused room for your home office. And let everybody know that it’s your office that’s reserved entirely for your work where you can focus on your business without interruptions or distractions. Otherwise, if you’re moving your laptop and paperwork whenever somebody needs that space, you won’t be able to get the professional vibe you need.
4. Not Doing Market Research
Entrepreneurs often get so excited about new business ideas that they overlook the market research phase and head straight into idea realization. It’s like going fishing only to arrive and find out that the lake has been dried. The market exists when people need a solution to a specific problem. You should inspect whether there’s market demand for your product/service if you want your home-based business to succeed.
5. Not Marketing Your Business
There are many forms of marketing – from word of mouth to traditional to digital marketing. Thinking that your product/service will market itself just because it’s of high quality is a misconception. Don’t assume that you don’t need it and that business will come to you – research your target audience to find out which type of marketing will suit you best, and start spreading the word around. Thanks to marketing, you’ll build trust and collaboration, drive results that lead to new and better ideas, and minimize business risk.
At last, home-based business are often run by one person who does it all. They may be willing to learn how to do everything and to do it themselves, and that may work for a while, but at some point, they will need to delegate the work. It’s one of the best ways to free up time for other business tasks that require their focus and expertise.