Common Mistakes Made By Home Business
Bill Gates wasn’t kidding when he said, “If your business is not on the internet, then your business will be out of business”.
Home businesses have existed for several centuries. The digital age is fairly a recent. A classic example is Lijjat Papad, which was started by seven home makers in 1959. They thought of making Papads, which was easy to make and easy to replicate. It was also a product that could be sold easily in the market. So with a borrowed capital of Eighty Rupees, they started this home business. Today, Lijjat Papad is an eight hundred crore plus company. So home businesses have an unlimited potential to grow, if done everything right.
If we treat the business as a hobby, we will get hobby like results. Hence, a lot of planning has to go when one starts a home business. One has to introspect if one is ready to take on the challenging journey and do whatever it takes to succeed in the business. One also has to see one’s risk-taking capacity, else they could land up in trouble if things do not go as planned. It is also very important to get support from one’s family. If there is any conflict about starting the business within the family, it will get very difficult for the entrepreneur to run this business successfully.
One has to come up with an idea, nurture it, and explore all the possibilities of growing that into a large business. In the process of starting a Home Business, these are some of the common mistakes that Entrepreneurs make:
Picking a wrong product or a service:
Before you make any kind of business plans, you need to think of a product or a service. A proper discussion with like-minded people and entrepreneurs should help you in this stage.
They fail to plan:
You need to prepare a detailed Project Report and put all the thoughts on paper with great amount of details. You also need to plan your Cash Flow Statements so you will know when you will need how much money and from where will it come. If we fail to plan; we fail to perform.
They do Bootstrapping:
They fail to hire the right resources and try to do everything by themselves in order to save on expenses. Do not hesitate to hire people if your plan requires the same. The most common mistake is to delay hiring the right people needed for the business.
Fail to plan your finances:
As mentioned before, you will need to plan detailed Cash flows so that you will not run out of money when you need it the most. For example, paying of monthly rent, salaries and other fixed expenses need to be planned for in advance.
Not create a Digital Presence:
We live in a digital age. Hence our presence on the Social Media is of utmost importance. Depending on our target audience for our product or service, we need to choose the right platforms. For e.g., Instagram appeals to the younger crowd while websites are for mature audience. Many people thing of this as an additional burden on their expenses. But they should look at it as a part of the investment that they have to do succeed in the business.
Not invest in yourself:
The biggest blunder most people commit is by not investing in themselves. Reading self-help books, undergoing relevant trainings, and training your staff are some of the ways one can invest in themselves. When you invest in yourself, you are making yourself ready to take your business to newer heights.
No incentives for your employees:
People get motivated when they see that they will be rewarded for the work they put in. This motivation can be in the form of awards and recognition or in the form of cash incentives from the sale that has been made. The employees will do their regular duties for the salaries they are going to get. But they will go the extra mile and put in more than that is required if they know that they are going to get some incentives which seem to be more rewarding than the salary that they are entitled to.
Fail to listen to their customers:
It is absolutely imperative for an entrepreneur to listen to what their customer wants. It will be a blunder to provide a product or service that the customer is not looking for. Hence the entrepreneur should be open to taking a feedback from the customers and making relevant changes so that his product or service has a high demand.
These are some common mistakes that Home Business Owners make. If they take care of these mistakes, they will be able to build a business which will eventually see an exponential growth.
“The people who are crazy enough to think they can change the world are the ones who do”
- Apple’s Think Different Commercial 1997