You
have dreamt of owning a business, no matter how small it may be
(well, at least initially). Many people like you are pursuing self-employment
opportunities today for various reasons. You may want your own business
for the self-satisfaction that it provides, desire for independence,
limited job opportunities, downsizing and restructuring of corporations,
downsizing of work forces, and threats of lay-offs.
However,
majority still fails to translate their entrepreneurial dreams into
reality. The number one culprit? You, the would-be entrepreneur,
is usually immobilized by your fear of failure. It is true that
starting a business is one big risk - and companies do go out of
business! To improve the chances of the success of your home
business, here are some common causes of business failures that
you need to know (and hopefully, avoid). 2.
Passivity.
If you are passive, your best bet is to work for someone else. Unless
you can immediately afford to hire employees, you may start out
as a solo operator. As a one-man team, expect to do everything -
from writing your business plan, manufacturing your product, marketing
and selling your products and services, doing bookkeeping chores,
and a million other tasks! Remember, you have only yourself to rely
on! While you may not be an outgoing person, you need to show aggressiveness
in getting the word out about your business. No customers mean no
business! Passiveness will not get you anywhere in business.
3.
Poor time management.
One of the advantages of working at home is that you get to manage
your own time. This, however, presents an interesting dilemma: it
is hard to manage your own time! Poor time management is the Achilles'
heel of many home office workers, since you are on your own with
no one to supervise you, help you organize and prioritize. Complicating
this problem is the fact that distractions may be a few steps away!
Your spouse and kids may demand attention, your neighbors can drop
by, and hey, Oprah has an interesting guest line-up today! There
are a million and one reasons to distract you from being productive,
and you need to learn to manage your time effectively!
4.
Considering your home business to be less serious than a "traditional"
job. You
may not have a glamorous office in downtown or you may not need
to wear those power suits to go to work, but a home-based business
needs to be treated with the same professionalism that you put in
your "traditional" job. After all, your income will be directly
correlated with the amount of time, effort, thinking and money that
you put in the business - a far cry from the days of being employed
when you get paid even if your definition of a productive day is
to write 20 personal emails to long-lost friends.
5.
Not following the 80/20 philosophy. - that 80 percent
of your business comes from 20 percent of your client base. Remember,
it costs twice as much to get new customers than to maintain your
existing base. Keep your customers delighted, for it is far less
expensive and easier to market to current clients than to seek customers
who don't have a clue who you are and what you do. Repeat sales
from existing customers mean lower per-unit marketing costs and
higher profits.
6.
Not promoting your business frequently.
Your business is only as good as the size of the market that you
are able to reach. While some businesses are self-promoting, most
often you need to aggressively get the word out about your product
or service. Too often self-employed workers and small businesses
look upon promotion as an unnecessary expense rather than the essential
investment it truly is. There are a number of inexpensive ways of
promoting your venture. Read the article "A Small Business Guide
to Free Publicity."
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Copyright 2000. 2i Trade Resource. Article written by Isabel M.
Isidro, Power HomeBiz Guides. For more articles, visit Power HomeBiz
Guides at http://www.powerhomebiz.com.
PowerHomeBiz.com is an online magazine designed to stimulate your
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