Running a Business from Home: The Do’s and Don’ts
If you are thinking of running a business from home, there are a few basic tips you should know. This essential knowledge holds the key to whether you will be successful in your venture or not. Let’s start by looking at ways to start planning for your business.
Wasting precious time in small details
When setting up a new company, do not get bogged down in detail when preparing the ground for setting it up. The important thing is to set up the business in as simple form as possible and keep improving as you go, making changes according to the dictates of the moment. As you go on you will find that there is actually not much to accommodate. If you have spent too much time in your preparation, you will find it is only time not well spent. When you are running a business from home this is a very important factor.
Starting a business on a partnership basis is a mistake because the company can break up easily at any time even due to the slightest hitch. A multitude of problems will crop up from time to time which results in disagreements leading to a split.
Ask your worth
Entrepreneurs should ask for what they are worth and get it. It is a folly to enter a market and wanting to be cheaper than competitors. Entrepreneurs must find ways to get what they are worth by adding value. Start-ups have a particular advantage on this because since they have not started something they can embark on anything. They have the advantage of studying what works and what doesn’t work for their competitors.
Late payments are one of the bugbears of small business owner. Whatever it is, do not forget that you are not a bank and don’t behave like one. There is nothing wrong about asking for money before you provide a service or product. Useful method is offering a discount if payment is received up front. Set a dateline for special discounts to be effective.
Overspending is a vital erroneous practice of many small businesses running a business from home. When buying office furniture, go for the second hand ones. That will save money which can be used to replenish money capital investment and cut down loss should the business fail. Two companies in the same building can share a photo copier.
Don’t use your prime time bogged up in form filling because that can be done during the part of the day that isnot productive. At other times concentrate on selling because that is the business you are in —- selling and making money and not practicing filling forms.
Never ignore positive feedback. Helpful feed back is free but they can help remedy your weaknesses. Feedback usually comes from distributors of your products who are in close contact with consumers. They know what makes the customers happy or otherwise with the company’s products or services. Use these feedbacks to your advantage by making the necessary adjustments to your operations.
One example of ignoring feedback was made by a new company with great potential to capture the market both locally and abroad. Customers clamored for the company’s products but suddenly sales drop a lot. The company received feedback from distributors that the quality of the product has dropped. Instead of listening to the feedback and improving quality, the company’s CEO ignored the feedback and boast of the company’s million- dollars status that would not get the company out of business. He brushed the feedback as insignificant. What happened told the whole story. The company went out of business and the arrogant CEO is now hunting for a new job.
Growing too fast
Growing too big too fast is also not advantageous when you are running a business from home unless you can handle the expansion . Don’t grow into a business empire that will give you a headache.
To be a successful entrepreneur running a business from home, be careful in your advertising. Identify your customer and advertise accordingly. Never spend a lot of money advertising and then pray for the results. Do some research before you go on an advertising campaign. You will hit the bull’s eye.
Finally remember that you never know who knows who. If you offer a great deal to one customer before long others will know including those that bought the product or service at a higher price. If you are spreading positive news, it is good to let things slip. People like talking about other people. You can take advantage of the word-of-mouth patterns to inform others about the uniqueness and exclusivity of your business operations. If you follow these steps, you will be a successful entrepreneur running a business from home.