- Like
- Digg
- Del
- Tumblr
- VKontakte
- Buffer
- Love This
- Odnoklassniki
- Meneame
- Blogger
- Amazon
- Yahoo Mail
- Gmail
- AOL
- Newsvine
- HackerNews
- Evernote
- MySpace
- Mail.ru
- Viadeo
- Line
- Comments
- Yummly
- SMS
- Viber
- Telegram
- Subscribe
- Skype
- Facebook Messenger
- Kakao
- LiveJournal
- Yammer
- Edgar
- Fintel
- Mix
- Instapaper
- Copy Link
One of the reasons home businesses fail is not having enough money to keep it going. First-time entrepreneurs often underestimate expenses, count on income too quickly, and spend on items they don’t need. Here are common areas where home business owners waste money and tips on how to avoid the financial pitfalls of entrepreneurship.
Spending too Much Time on Start-up and Preparation
Until you get that first client or make that first sale, you’re not in business.
Each day, week, month you put off your launch, you’re not making money. That’s not to say that research, planning and set-up aren’t important, but at some point you need to jump in and get started. Not every duck needs to be lined up for you to start selling your goods or offering services. The sooner you start selling, the sooner your home business will make money.
Investing in Non-Essential Resources
I love the office store and I could spend a fortune on gadgets and doo-dads for business. However, gadgets and doo-dads don’t make money. If the items you’re considering buying don’t directly help you make money, it’s not essential. Do you really need a new computer or can the one you have do until you’re making money? Will those files help you be more productive? Then buy them. Think of it this way; the less you spend, the more money you get to keep. So don’t buy things unless you really need them to run your business.
Bright, Shiny Object Syndrome
Although this is included in buying stuff you don’t need, I’ve included it on its own because these items are often the hardest to avoid.
Bright, shiny objects aren’t just times you can buy in a store. They can also include services you find online that give you the impression you’ll make money fast with little to no effort. “We’ll get you 5 million likes on Facebook.” “We’ll send your ad to 10 million email addresses.” “We can increase your sales conversions 300%.” Certainly, paid tools and resources can help you build your business, but be careful of resources that dazzle.
Failure to Prioritize Home Business Activities
I had a mentor once that said it wasn’t the amount of time spent on business that mattered, but instead the amount of business that you put in your time. Running a business involves a lot of busy activities that don’t make money. If you focus too much time on the busy work as opposed to money-making activities, your business will struggle. My business strategy is to organize my day so that I do the activities that make money the soonest first. Other stuff, like filing, gets put on the back burner. Providing your products or service and marketing should be at the top of your daily to-do list.
Haphazard, Non-Targeted Marketing
This is one area that many new home business owners lose money and momentum. The best way to make money with the least amount of time and money is to market to a target market daily. Who is the best buyer of your product or service? Why do they want or need what you offer? Where can they be found? Once you answer these questions, craft a marketing message that offers a solution to their want or need and get in front of them. If you don’t take the time to get to know your market and learn how to best meet its needs, you’re wasting your time.
Not Tracking or Measuring Results
This is another area that new home business owners end up wasting time and money. The only way to maximize your results is to know what’s working and what’s not. You might like Pinterest, but if it’s not generating sales, you shouldn’t be using it to build your business. When you dump the dead weight, you have more time to focus on the strategies that work, which leads to more sales.
Not Paying Attention to Expenses and Income
Do you know how much you spend a week, month, year on your business? I remember the first year in business being surprised at tax time, when I finally tallied all my expenses, at how much I spent. Small expenses add up. If you find that your overhead is high, look at things you can cut such as non-essentials and the bright, shiny objects. Also, look for ways to cut down on regular expenses. For example, are there ways you can save on printing and ink?
- Like
- Digg
- Del
- Tumblr
- VKontakte
- Buffer
- Love This
- Odnoklassniki
- Meneame
- Blogger
- Amazon
- Yahoo Mail
- Gmail
- AOL
- Newsvine
- HackerNews
- Evernote
- MySpace
- Mail.ru
- Viadeo
- Line
- Comments
- Yummly
- SMS
- Viber
- Telegram
- Subscribe
- Skype
- Facebook Messenger
- Kakao
- LiveJournal
- Yammer
- Edgar
- Fintel
- Mix
- Instapaper
- Copy Link