5 Mistakes You Should Avoid When Launching a Home-based Business
Starting a home-based business has a lot of promise and potential. Imagine the short 5-second commute from the bed to your workstation and not anymore the grueling 45 minutes you spend in traffic each morning. Also, you get to spend more time with your family by being there at home, allowing you to attend to their needs without filing for a leave with the boss. Importantly, you become the boss. You get to call the shots in your business.
But running a business from home has its share of challenges. Here are the things you need to avoid and take into account to make sure being a home-based entrepreneur goes smoothly for you.
1. Not Having a Daily Schedule
Now that you’re a CEO, you probably can just do anything with your time. Not exactly. You can’t just go on day after day thinking you can wing everything. There needs to be a semblance of order, starting with a task list. The night before each working day, create a list of the things you need to do the day after, and arrange them according to priority. This will ensure that you’re on track with your business goals and being productive with your time.
2. Combining your Personal and Business Finances
Don’t make the mistake of messing out your personal and business finances because this will make it challenging for you to organize your financial life in general, especially come tax time. Draw a separate budget for your personal and business needs, and ideally, each should have their own accounts. You want to keep your money in order also because you need to keep track of your expenses and profit, which later on will gauge how your business is doing.
3. Working All the Time
So you’re running a business you’re deeply passionate about and feel like you need to keep on working and improving on it. You’re lured to work all the time and not even thinking of getting a decent meal or taking a breather outside. Sooner or later, the feeling of loneliness and isolation start to set in, leaving you demotivated. One word: relax. We all need to have time for ourselves and socialize with others and don’t even feel guilty about it. You’re more functional and productive when you have work-life balance.
4. Not Having a Dedicated Workstation
Are you thinking of setting up office on the kitchen table? That could work, but probably not in the long run. You’ll have to set up in the morning and take everything out when you need to cook or when chaos starts in your home. And then there’s the noise from the TV and the sight of undone dishes. Before you know it, you’ve lost your mojo and you haven’t even made any progress yet! When starting a home-based business, make sure that you’ll have a dedicated space. This is where you do most of the work so it should be away from distractions. If you can’t turn a spare bedroom into a home office, pick a nook where you feel you can work comfortably and productively.
5. Not Saving Enough Money to Tide You Over
So you’ve just surrendered your day job and you’re now relying on your home-based business for income. But you can’t expect for money to start rolling in the first day you swore to become a full-time home-based entrepreneur. As much as possible, save enough money so you can have some funds to replace your day income, just in case your home-based business takes on a slow start. Also, you should take into account that business income fluctuates from month to month, and having a solid financial cushion to rely on gives you peace of mind and improves your focus. Even with a slow start, you know you’d be fine knowing you have some savings to use, just in case.
As a wrap-up, do not start a home-based business unless you have a plan, you have devised a schedule and you have set your financial house in order. This is a very life-changing event for you and you want to make sure that you are all set and ready to face this new venture, even with challenges thrown at you from time to time.