Joe hated his job. Nothing would make him happier than walking into his boss’s office and simply saying, “I quit!” before he walked out the door at the end of the day. But Joe couldn’t quit his job. After all, he liked to eat. After some soul searching and brain storming, Joe came up with the perfect idea for a home business. So he started the ball rolling, walked into his boss’s office, and joyfully proclaimed those words he dreamed about for so long: “I quit!” With his dream in his head and his heart full of hope, Joe will begin the same journey that so many home business owners begin. He must be aware, however, of the various pitfalls that await him in his journey.
Home business owners must first of all understand finance. The vast majority of business men and women will tell us that to make money we need money. However, this myth has led many into the path of financial destruction, with unpaid and defaulted loans along with broken lives. The first mistake that many home business owners make revolve around their personal finances: they borrow start up money for a pipe dream. Thus the first dollar they make really isn’t theirs. It’s their lenders. They begin treading water in a pool of debt instead of building a mountain of wealth.
While home business ownership offers flexible hours, it does mean that the individual has the option of not working. Quite simply, many home businesses fail because of sheer laziness and lack of discipline. A home business owner must understand the need to keep regular hours and to work just as diligently if not more diligently on this job than he has on any other. He is working for himself now, and while he cannot fire himself for poor work habits, he can simply watch his company collapse while he’s at the beach catching some waves or fishing in a lake with his buddies.
A great idea, start up money, and some discipline will get a home business owner a long ways. He will have the drive to do well, the finances to back it, and the great idea to sell. However, home businesses with all of these elements in place can still fail due to another major pitfall: poor marketing. Many home business owners do not own a business degree. Thus they never took a class in marketing or advertising, and they do not understand how to properly market their product. After all, shouldn’t a good product sell itself? Why market? Why advertise? A great marketing teacher will explain the need to market even the best product well. Others will not know about the product without great marketing, and even a marginal product can do well with excellent marketing techniques. Those beginning their own business can improve their business even more with just some basic marketing guides. Guerilla Marketing has proven to be a great help to those first starting a business.
Finally, with drive, start up money, discipline, and marketing in place, the home business fails in one other aspect if the owner does not have the necessary experience: taxes. Home businesses have the potential to generate a substantial income, but the home business owner who came from the corporate world typically has no experience in doing the taxes for another business. Many think they can do their own taxes, but they fail to recognize important deductions and tax laws, and thus they should consider the value of a Certified Public Accountant.
Home business ownership is a scary and exciting venture. Those who take that path in life must be fully aware of the dangers that lie ahead so they know where to guide their business.