In our previous article 5 Difficulties You May Face With Starting A Business At Home we discussed the 5 most common problems faced by entrepreneurs while starting a business at home. However, those are not the only problems you are likely to face when beginning your new home business– in fact there will be plenty of more– such as having to answer the door time and again, the children in the house storming into your workplace and most commonly, the lure for that seemingly irresistible afternoon break for 10 minutes which ends up being 45 minutes.
This is the second installment in that article-series and here, we will be shedding light into some of the other common difficulties as well as their solutions:
No budget: For starters, it is essential that you make a business bank account for your new home business rather than relying on any personal account for the financial transactions. Budget management is a key skill that any emerging entrepreneur must excel before taking his business to a more profitable stage. Keeping the business finances separate from your personal finances will certainly help in achieving that goal. And with the business finances segregated from personal finances, it will become immensely easy on your part to pay accounts when the time is right. It also is much cheaper on your bookkeeping account if you keep all your business and personal transactions separate. In addition, if you plan and manage your budget with the utmost seriousness, you will have a good knowledge of how much money is going out and how much is coming in. This way, you can prevent yourself from running into the red.
Unable to save money for annual bills: One of the most common pitfalls of any home based business is running out of cash earlier than expected and having nothing with which to pay those annual bills. So, it is important that you consult experts and take their opinion on key areas such as minimizing taxes, saving enough cash in the bank as well as forecasting your initial costs. Getting your finances and budgets right before you even open the doors is a critical part of keeping those doors open in the long term. Know how much it will cost to set up, run until you make a profit and upgrade any marketing, equipment or other expenses that you may run into as your business grows.
Not enough space for work: This is another common problem that most emerging entrepreneurs face while starting a business at home. Unless you have abundant fund, then it’s more likely that you will find yourself cramped alongside your desk, file cabinets as well as other essential office necessities in a corner of your bedroom or basement. Worse even, if you are selling goods from your home then chances are high that sooner or later the inventory will pile up to almost an unmanageable level. Unfortunately, there is no magical solution to get yourself out of such a mess– it all depends upon your ability to make the best use of your management skills and plan accordingly. There are ways around this by using half a garage, putting up a shed out back or using a spare bedroom, but do keep all this in mind when you start out.
Stress: Starting a business at home may sound fun as well as an epitome of self-reliance and independence because you will be your own boss, but remember, it may also backfire on you at times by making you feel lonely and stressed. So, it is important that you learn to balance your personal and professional life. Work is important, but distancing yourself from fun and family can do more harm than good in the long run. Separate your working times from your personal life and give quality time to both.
Lack of self-discipline: Depending upon your willpower and self management skills, your productivity as a home based worker may drastically improve or reduce. Starting a home based business means you will always be your own boss so it is important that you instil a good work ethic right at the beginning. You don’t want to end up in the situation of having no code of conduct to follow; no formal routine that you must stick to everyday and above all, no daily, weekly or monthly target to meet. If you can not maintain a certain level of control over your daily actions, the consequences upon your new business may not be all bright and shiny. After doing all the hard work in setting up a new business, you certainly won’t prefer to lose it all merely because of your laziness and lack of self discipline.
I am sure you will find our mini-course helpful so why not sign up in the box below and get more information.
SIGN UP AND RECEIVE THE PASSWORD TO ACCESS OUR FREE RESOURCES AT YOUR LEISURE