[aabusiness] Article: 5 Mistakes Many Home Business Start-Ups Make

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Article: 5 Mistakes Many Home Business Start-Ups Make

Word Count: 795 words including the bio

Author: Leslie Truex

Website: Http://www.workathomesuccess.com

5 Mistakes Many Home Business Start-Ups Make

Starting a home business allows you to design a career you love to fit a lifestyle
that suits your family. But it is not without its challenges. Failure to plan
and learn the activities required to build a profitable business can hinder
your success. Here are five mistakes many budding home-based entrepreneurs
make and how you can avoid them.

1. Not running the numbers.Many people believe that their home business needs
to earn the same amount they earned at their job. This is not necessarily true. 
Working at home can come with many cost savings that can result in your need
to earn less. On the other hand, running a business has expenses. Budgeting
and accounting can be boring, but if you don't know exactly what you need to
live on and how much it will cost to run your business, you could end up in
financial trouble. Start by determining the money you need to survive. Calculate
the expenses you foresee in running your business and add any additional profit
you hope to earn. Then add 10% more just to be safe. Finally, track your home
and business expenses regularly so you can determine your actual costs.

2. Not charging enough for your time.Whether you have a service or product
based business, you need to make sure that you charge enough to cover your
expenses and the value of your time.  In an effort to enter the marketplace,
many new business owners undercut their prices. The problem with this is that
if you undervalue your work and your customers will too. Further, with lower
prices, you may not be charging enough to maintain your business. To price
properly you need to take into consideration the amount of time needed to deliver
your service or create your product, and your overhead expenses. If you charge
$100 for a service that takes you 5 hours to deliver, it seems like you are
earning $20 an hour. But that $20 an hour needs to pay for your business expenses
such as Internet connection, materials, advertising and other costs associated
with doing business.

3. Working without a contract.Always develop a contract for service-based businesses
and terms of service for product-based business to protect you and your customer.
These not only help ensure you are paid and avoid legal hassles, but it ensures
that everyone is on the same page about what you provide and at what cost.
A service contract should define the scope of your work, a deadline for delivery,
payment information (i.e. deposits and rates) and recourse for your client
if he is not satisfied such as additional edits or refund. In a product oriented
business, have a terms of service that outlines product warranties and refund
options.

4. Not maintaining a professional attitude or image. The customer isn't always
right, but he should always be treated with respect. On more than one occasion,
I've had people request a refund -- sometimes using harsh language -- on products
I don't sell. I get annoyed and want to express that annoyance. But I am in
business and I know that one bad customer encounter can do more damage than
ten good ones. So I am always respectful and helpful. You should be too. A
professional image is not just how you treat people, but how you are seen in
the world. Before doing business with you, a potential client might do a search
on your name. If he finds party pictures from Cancun on Facebook, he might
think twice about hiring you. Separate your personal and professional online
profiles by making your personal ones private for your friends only. You can
share personal information on your business profiles, but avoid anything that
might offend potential clients and customers.

5. Not marketing.Without marketing, you don't have a business. Period. The
money comes from the marketing. Start by identifying your target market and
the triggers that will cause them to buy. A trigger isn't how great you or
your business is, but how you or your business will make your customer's life
better. Next, determine where your target market hangs out and create marketing
materials to put in front of them. Develop a marketing plan that involves doing
at least one marketing task, if not more, every day.

About the Author: Leslie Truex is the author of The Work-At-Home Success Bible.
She has been telecommuting and running home businesses for over 15 years and
helping others to work at home since 1998. She conducts Work-At-Home Success
University that includes courses in finding a work-at-home job. Learn more
plus get work-at-home jobs, money-making tips and other resources for free
at http://www.WorkAtHomeSuccess.com

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