At some point, you may wake up one morning wanting to be an entrepreneur. You are ready to bust out of your cubicles and start your own home businesses. While many succeed, many more fail. These are the top ten home business start-up mistakes.
1. Starting on a whim. The morning you wake up with your entrepreneurial dreams is not the day to run into the office and quit your day job. Wait a considerable amount of time and see if you still have the desire a few months down the road.
2. Lack of planning. I am sure you have heard the phrase, “failing to plan is planning to fail.” This is advice to listen to. Have a list of specific goals and how you plan to achieve them. Know how you will be paying your bills while you get your business off the ground.
3. Pocketbook over Passion. We are bombarded on an all too frequent basis with “the next big niche” news. Avoid businesses you are not passionate about. If you are bored, or uninterested in the work, you are likely to quit before seeing a profit.
4. Quitting too soon. It takes an average of three years for a new business to start turning a profit. Keep this in mind when making your plans.
5. Not getting help. If there is an aspect of your business you are struggling in, get help. This may be marketing or technical help. It may be a mentor or coach to help you overcome obstacles along the way.
6. Not being specialized. “Jack of all trades, master of none.” Identify your specific niche. Capitalize a few things you do exceptionally well and leave the rest behind. You are better able to market your business when you have a very specific target in mind.
7. Not knowing your market. Take time to research what your target market is looking for. If you listen to their problems, you can better find the solution.
8. Not having a contract. You are in business to make money. Without a legally binding contract, eventually someone is going to try to get out of paying. Invest in a solid contract.
9. Failure to keep good records. It is imperative that you keep track of expenses and income. Set up a separate business account designated solely to your new business.
10. You quit marketing. Keep marketing even after your business is off the ground. Keep your name out there. Set up a referral system for existing customers to keep a steady stream of business.
When you are ready to start on your entrepreneurial journey, keep the above mistakes in mind. Being proactive to avoid trouble is imperative to success.