Many entrepreneurs, when they
start out, are so full of confidence and positive energy that no
problems can stand in the way. However, in the course of starting,
running and selling small businesses, it is somehow inevitable
that mistakes will be made.
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Minimize your mistakes by looking at
the knowing myths and misconceptions with healthy skepticism about
home business management presented as gospel truth.
Myth
1: A home-based business has no overhead
costs.
Reality: Often as much as 50
percent of a home-based business' billing rate will go toward
covering overhead costs, but the good news is that you can deduct
from your income tax a percentage of your household and related
bills if you work from your home. You can check with your
accountant, bookkeeper, or local IRS office for guidelines about
these tax deductions.
Myth
2: I will not need childcare if l work from
home.
Reality: True, a home business allows you the flexibility of
working your own hours in the comfort of your house. However, it
is an entirely different story if you have kids – try conducting
a conference call with a two-year-old in the same room! Truth is,
a majority of entrepreneurial parents have some sort of child care
arrangement--using either a spouse or baby-sitter to care for the
children in the home while they work for a block of time or taking
their children to a day care or sitter for a few hours a day or
week. Even older children can be demanding and sometimes resentful
of your business's demands, it is best to realistically discuss
your business idea with your family and think carefully about the
number of hours you will actually be able to put into your
business.
Myth
3: If I have a home business, I will have
time to clean house, continue to volunteer at church and school, cook
delectable meals, taxi the kids to all their activities, and have a
meaningful, personal relationship with a "significant other."
Reality: This
is really a fantasy world! A home-based or small business demands
more hours than a regular job, especially in the start-up phases.
Unless you are a "superman" or "superwoman”, then
you will have to prioritize the important parts of your life and
phase yourself out of all but the most significant people and
activities with which you are involved. As my mother always told
me, "1 have no formula for success, but I do know that you
will fail if you try to please everyone!"
On a positive
note, you can use your business to help your community by giving
jobs or internships to youth, mentoring a struggling entrepreneur,
donating your product and/or services to a charity auction, and in
many other ways. You not only get to help others but it is also
good (often free) publicity for your business.
Myth 4: I have a great idea that I know will
make me lots of money, and I hope to start it next week.
Reality: First time entrepreneurs and would-be entrepreneurs make the mistake of
thinking that a good start and few lucky breaks will spell long term success.
Business experts say that the amount of time and research a person puts
into a business idea relates directly to the success of that business.
Unfortunately, one of the biggest mistakes a new entrepreneur makes is going
ahead too soon, before thoroughly investigating the business and its trade.
While a good start and the lucky breaks will help launch a venture, they will
not insure continued success. One woman who has a successful food delivery
franchise took a full year to research the business before she invested a single
dollar.
You can make a list of business ideas that interest you, look to see what
businesses like those exist in your community, talk to other entrepreneurs, and
even work for a time in a business that is similar to the idea that interests
you.
Check, too, to see
whether a potential market for your business exists in your
community. My sister-in-law tried to start a personal provider
service -- running errands and shopping for people. Unfortunately,
the people in her community are not interested in hiring someone
to do their shopping. My sister-in-law now advertises in a
community that is only a few miles away but has a higher
percentage of professional couples that are more likely to use her
business's services.
When
you believe you have a good idea and a potential market, then
you can begin to write a business plan to set your goals,
financial needs, and so forth. You will have a much better idea of
what your business will offer and who your customers will be. You
may wish you could start tomorrow, but taking the time to research
and plan your business idea will pay off, literally, and your
business will be much more likely to succeed.
Myth 5: If I work from home, I can be
much more casual in both how I dress and how I treat my customers.
Reality: Yes, you can dress
in your T-shirt and sweatpants while you make business calls (unless you have a
home office that receives customers), but how you treat your customers should be
as professional as any business protocol dictates. Do you respond promptly to
customer requests? Do you have professional-looking promotional materials? Can
your customers depend on your product and service? How can customers and
business associates reach you if you are not in your home office? Do you belong
to any professional trade groups or associations?
In other words, you can
work from your home office, but you should always follow professional procedures
and ethics as if you were working from the office of a CEO of a major
corporation. After all, you are the CEO of your business, even if you are the
only employee. Just remember to act like one, or no one will take your business
seriously.
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