1) No Homework Done. It's essential to gather as much info as you can about your type of business to see if the idea will take off. Research similar businesses, unearth your competition, and figure out your target market. Visit conferences and trades shows, and surf the internet.
2) Ignorant of legalities. The legalities of starting a home business such as tax payments and exemptions can get complicated. Instead of stressing yourself, why not employ a tax consultant's service to offer you advice on managing your finances?
3) No Support System. Working and living under the same roof is going to interfere with your family's dynamics. Their support is important to your success. They need to help you juggle responsibilities and boost your confidence when your spirits are down.
4) Insufficient Saving. If you've always had a regular pay cheque, your income will take a steep nosedive when you first start out on your own. That's why you need to have at lease six month's pay for financial security.
5) Not Written A Mission Statement. Define your business and its goal in three months, six months and a year from now. Having a mission helps keep you on track when you might get lost sometimes in the madness of it all.
6) Failing To Organise. This is where years of meeting office deadlines come in handy. Being your own boss can be tricky when you're a procrastinator. Hang a production schedule on the wall to make sure you stick to set deadlines! Don't get backlogged in bookkeeping by sending out invoices promptly. Clients may take up to 90 days to pay, and you'll be out of the income even longer if you delay in billing them. Keep a logbook on expenses to make sure overheads are covered.
7) Being Too Timid About Negotiating. Don't sell yourself short, but don't price your products or service out of the market either. Check around and be competitive so you know you're being paid enough.
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