home business mistakesWorking from your own home has its definite perks,  with any business however, people do make some common home business mistakes when they first get started. Make sure you don’t make any of the 10 home business mistakes listed below and you will be off to a good start!

Mistake #1 – Picking the wrong product or offer. Many people tend to pick the wrong product or service to offer. This, of course, causes the downfall of the business. Do your research before deciding on what services or products to specialize in. Make a list of pros and cons and keep in mind things such as the cost of start up, materials and expertise needed, as well as, the yearly income you can expect.

Mistake #2 – Selling products that nobody needs. Research the market backing your products and services. Compare which one has more need and a wider audience. Don’t sell products that no one needs or there is only a small group of people that it would interest. Pick a product or service that is needed by a wide range of people.

Mistake #3 – Overspending.
Spending too much, more than your budget allows, to start your business is a very common home business mistake. You are not leaving any room for error or any money to compromise your business plan if the need arises. Spend what is needed, but don’t buy the most expensive products and plans to start your business. Design basic layouts that are cost effective, sign a web hosting plan that isn’t budget draining and sell products that you purchased at a wholesale value or below market value.

Mistake #4 – Not Spending Enough. Don’t spend too little on starting up your business. Remember, the money you put in should be coming back to you within a few months. Spend what you need in order to start your business. Consider that all of this is tax deductible, so you have no excuse not to buy everything you need for the business. Purchase all of the products you will sell, the packaging materials, website domains and other services before starting your business.

Mistake #5 – Not doing your paperwork. Keeping records of your initial start up costs and your sales is not only important for your records, but also for tax season. Many things that you purchased in order to start your business are tax deductible, but only if you keep receipts and paperwork filed properly. Whatever you sell, you should also keep a file of. Much like when you purchase something from a store; they give you a receipt because that is important to keep on hand when proving income or filing for taxes.

Mistake #6 – Not charging enough. Charge enough for your products and services, but not to the point of making your customers feel that your prices aren’t fair or competitive. Calculate what each product costs for you to acquire or make and the time you spend making or buying it. That should give you a range of what you should be charging for your products. Be fair in your prices, but be fair to yourself as well. Don’t charge a lot less just to get customers to buy from you. If you charge what you should, chances are that eventually you will build a good customer base.

Mistake #7 – Pricing your products too high.
Don’t price your product out of the market. Products should be priced keeping many factors in mind. First thing to focus on is researching what other companies are charging for similar products or services. You don’t obviously have to charge the same amount, but calculate an average price based on many successful companies’ pricing. This can help you achieve a price range that is fair and favorable to the market.

Mistake #8 – Poor website design.
Having a website that is not user-friendly can greatly impact the amount of sales you make or don’t make. Websites that rely too much on flash or JavaScript can scare away customers. When developing your website, make sure that it is easy to load for all web browser versions, operating systems and internet connections. It may be hard to believe, but some people still rely on dial-up internet connections or use the internet on their smartphones. Remember this when designing your website in order to make it user-friendly and comprehensive.

Mistake #9 – Not giving it enough time. One of the home business mistakes that I see most frequently is people giving up before they’ve given it a chance to work. All businesses take time to grow and make money and it is entirely possible that you may not make a profit at first. The key is not to give up at this stage Persevere and learn from your mistakes.

Mistake #10 – Not doing something you enjoy. Not listening to your gut feelings can really damage a business. Don’t partake in something that you don’t believe in. Many people start a business because everyone else is doing the same thing, but remember this is you and not everyone else. The business you start should be something you are knowledgeable about and love doing. You can still make money in a business that you started because you loved it. Keep that in mind when choosing your business path.

Keep the home business mistakes above in mind when you start your home business and remember that success truly relies on research and it can make or break your business within the first few initial start-up months.

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