Everyone wants to make a living from the comfort of their own home. However, often it does not turn out as many people expect. A home business is first of all a business – not a job.
Mistake 1 - Maintaining an employee mindset
People who are used to have jobs often think of a home business more like a home job. It is not. You have to adopt a totally different mindset. There is no boss who will tell you what to do. Some people – believe it or not are missing their boss. Instead there is uncertainty. So many options – nobody telling you which way to go. Remember there is nobody to take care of you except you. You have to step out of the shadow and adopt a true entrepreneur mindset. I have been teaching people adopting this very successfully and I know you can do it too.
Mistake 2 - Quitting Your Job To Early
Once people start making some money with a home business – they get very excited – the think: Hey this is working great. Upon the first signs of success they will quit their day jobs without thinking that income in the business world fluctuates heavily. Sometimes because of market trends – sometimes due to seasonal effects. Some businesses do better in winter – anything associated with perfume or decoration will always do better around November and December. While anything associated with outdoor sports is doing better in summer. Once you quit your day job, most of the time there is no way back. You have to only rely on your own business to pay for all your bills. Long-term trends apply as well. A business can go great for some time then go bad. To be sure you have made it – you have to at least earn twice as much as you do in your day-job. That that as a rough figure to watch.
Mistake 3 - Relying on Short-Term Income
Even without seasonal effects income and expenses fluctuate. Most people are used to receiving a constant amount of money in regular intervals. In the business world this is far from reality. There will be times when you receive incredible amounts of money and other times when incomes seems to dry up totally. Many people think just because they receive a great deal of money at a certain point – now it’s time to spend it. Don’t do it. Act conservatively.
Mistake 4 - Mixing Up Business and Private Assets
If you received money from a client do to take it and take your partner out for dinner. Keep business income and business expenses 100% separated from your private affairs. Many new homes business owners think it a Open a different account for your business purposes only and pay yourself a salary transferring money from your business account to your private account. Believe me – it is work the extra efforts and the additional bank fees.
Mistake 5 – Trying out too many things
It is tempting to try several business models, several products to sell and many other things. One day you’ll try a franchise, another day you get convinced to do online surveys, another day you’ll fall for a pyramid scheme. Whenever something doesn’t work out immediately, you’ll try something different. This is a certain road to failure. You should take time in the beginning to plan. Before you try out something, evaluate different business opportunities and match them with your skill profile. Stay focused if you are convinced you are on the right track.
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