Small Home Based Businesses – How to Avoid these 5 Biggest Mistakes

Like many entrepreneurs, starting a business with little or no experience was the route that led to success. Just like many entrepreneurs, started small with little or no capital. Many home-based companies you can begin with very little capital and little or no experience.

Like many home-based business entrepreneurs, you too started small, with a few dollars in your pocket and/or credit card. Most often, when I first started my online business, it was with no capital or even a website. Most often, it was through word of mouth from family and friends. Most often, home-made online businesses involved local services such as bike rentals, cleaning services, or selling local items on sites like eBay or craiglist. Some even choose to work from their homes.

One of the biggest mistakes that I made when starting my online business was to try to make money quickly, while still building up a decent business portfolio. In other words, unlike a brick-and-mortar business, with an online business you do not have to pay a huge fee to get started. Unlike a traditional business, with an online business you are not restricted by geographical location. If you are willing to learn a new skill or invest your time, you can get started with an e-commerce business almost anywhere in the world. The only caveat is that you will need a good understanding of how an e-commerce business works and have a solid understanding of computer applications.

One of the biggest mistakes I see online today is failing to build a strong marketing plan. If you are trying to make money online, like many small businesses, you will have a website. Unfortunately, without a proper marketing plan, your website could be viewed as a spam site and you could lose potential customers. Without a plan for promoting your website, you could also end up losing your business before it ever gets started. Therefore, before you spend any money on an at-home business make sure you spend time planning out your marketing strategy.

One of the most important assets an at-home business owner needs is a business bank account. If you have little or no money, you will find it difficult to obtain a loan and pay for equipment or goods. This can lead to you losing your business before it ever gets started. Therefore, it is imperative that you make sure you establish a business bank account prior to launching your online business.

The second mistake that I made was thinking that having a small home-based business was easy. I failed to understand that having a small business bank account and a legitimate email address were necessities. Although having these items may seem unimportant, imagine if you don’t have a reliable email address or business bank account. Would you open an online store or a blog without either? And what would happen if your online store never received a single order? If your customers can’t contact you or order from your website, then you will lose your business before it even begins.

The final mistake I made was that I launched my small home-based business without any plan. I failed to determine whether or not I had a unique online business idea. I failed to establish a budget, I failed to decide on the scope of my business, and I failed to choose the direction in which my business would travel. Once these mistakes were corrected, I was able to focus on building a solid foundation that led to a successful online business.

Each of the above mistakes was easily avoidable, but many other small businesses are also doomed to failure without having first determined their business identity and their entity structure. Without a business plan, without having business goals established, and without having a solid organization, there is no way to succeed in a home based business. However, when these mistakes are discovered early on, they can be easily corrected. The more often you make these mistakes the more chance you have of being able to overcome them and establishing yourself as a successful home based business entrepreneur.