The daily grind of the 9-to-5 isn’t appealing to many people.
While it’s true that working hard, learning as you work, and improving your skills will mean you progress up the career ladder, it usually means sacrificing some aspects of your personal life – such as spending time with your family.
Starting a home business appeals to many individuals and those with families in tow because it means they can control their working hours and what they do daily.
Of course, embarking on such an ambitious new chapter in one’s life can simultaneously be scary and exciting! That’s why planning and researching any new work-from-home business idea is a good idea before getting started.
It’s also wise to avoid making certain mistakes that many new entrepreneurs make. This article aims to describe the top five home business mistakes to avoid; here’s what you need to know:
1. Forgetting To Plan
It’s no secret that planning for anything in life means you’re most likely to achieve a desired outcome. The same rule applies in business, whether it’s one you start from home or elsewhere.
A leading reason for new entrepreneurs closing their businesses within the first 12 months of trading is a lack of planning. Some things you should always plan for in your home business include:
- Money to pay for your regular outgoings;
- Hiring employees or freelancers;
- Sales and marketing strategies.
2. Not Setting Daily Routines
When you run a business from home, getting distracted by what goes on around you can be very easy.
For example, children and other family members constantly interrupting you, procrastinating, and preferring to spend the day outdoors are just some of the many distractions you might face.
That’s why it’s important to set strict daily routines and ensure everyone at home knows about them. A dedicated home office, delegating household tasks to others, and fixed lunch break times will all help.
3. Failing To Research Legal Requirements
Whether you’re a freelance graphic designer or a new construction company owner, your business must meet various legal and regulatory requirements.
For instance, if you ask your clients to sign contracts, properly managing contract risk in legal terms is crucial to avoid getting fined or worse by all applicable regulatory bodies.
In other words, you must ensure your contracts are “watertight” and check that everyone complies with the terms.
4. Using One Bank Account For Everything
It’s easy for sole proprietors to use their existing bank accounts for business purposes. However, it takes more work to distinguish between personal and business transactions – especially when you must do so for record-keeping and tax purposes.
Always open up a business checking account whenever you start a new business. Doing so is quick and easy nowadays, and you can likely do so online.
5. Being Complacent
Lastly, everyone who starts a new business from home is somewhat complacent. Still, that doesn’t mean you should continually “keep your eye off the ball” as far as your daily business operations are concerned.
For instance, avoiding customer feedback could potentially tarnish your brand, as might pricing yourself out of the market.