When it comes to starting up your own home business, there are a lot of things that you need to think about and launch into action. From something as simple as deciding what your business will be, to producing a full plan and finding the perfect name, starting up a business isn’t a simple process and for that reason, it’s easy to make mistakes. Without the support of an office space or a team of employees to help get things off the ground, those starting a small home business may be more prone to simple mistakes and for that reason, we’ve put together a list of 10 things you need to avoid when starting a new home business.
#1 Not Having A Proper Plan
One of the biggest mistakes that home business owners make when starting up their business is to, quite simply, not have a proper plan. It’s easy to throw yourself headfirst into your business idea and excitement can make you skip over all of the important planning that could help set you up for success. Planning can be tedious and we all know it, but a solid business plan that includes everything from initial business research and market potential, to a financial plan or advertising opportunities, can really help to set you off on the right foot.
#2 Mixing Up Business And Personal Finance
Financing your business is one of the most important things to get right but when running a home business, it’s easy to get these finances mixed up with your personal ones. There’s never any reason not to have separate business and personal accounts, and you should be doing this from the very start. This ensures that you can effectively and accurately allocate equity, as well as work with the money that your business has without ever risking delivering it into your personal finances.
#3 Not Starting Marketing Straight Away
Marketing can make or break a new business, which is why it’s vital to get started as soon as you possibly can. In some cases, starting the marketing before you even begin to sell products can help to create a buzz around your business that will help you better determine how well your launch will go. Whether you crowdfund for your new products initially or you simply get your presence established on social media, marketing from the offset will help you stand a better chance in your industry.
#4 Ignoring Your Brand
Similar to the point above, you need to be focusing on building your brand from the get-go. Your brand is how your customers see you, from the reputation you hold to the name they use when recommending your product or services to their friends. It’s the way that potential customers see you and your business and can really help you stand out from your competitors in the industry. Your brand, and building your brand, should be a core part of your initial business plan and will act as a central part of your marketing efforts.
#5 Putting Off Taking That First Step
While some people get stuck in too quickly, there are also plenty of us that struggle to take that first initial step. We can plan and plan and plan but nothing will ever happen if we don’t just get started. The first step is often the most daunting, usually because it’s the most important step, but it’s important not to lose your determination and excitement at this stage. Without that first step, your business can’t get off of the ground and you’ll miss out on everything it could offer.
#6 Doing Too Much Too Soon
Once you’ve taken that step, it’s easy to get into a flow and get carried away with doing far too much, too soon. Business growth is only ever a good thing, but doing so too quickly, particularly while working from home, can leave you feeling lost and overwhelmed. Lacking the right resources or sufficient amounts of them could lead to struggles in the business rather than growth, even down to not being able to keep up financially with the new demands of a grown business.
#7 Not Considering Lifestyle Changes
Many of us have been working from home for some time now due to lockdown, but starting your own home business comes with far more demands on your lifestyle than you may be used to, with many of them affecting your family too. While getting the business off of the ground, you may be limited on money and have to give up certain luxuries in the meantime, or you may need to sacrifice some of your personal time in order to meet deadlines or get things going. You need to be kind but real with yourself and with your family over the first few months of getting started and understand the demands required when starting a home business.
#8 Not Having A Dedicated Work Space
Having a place dedicated purely to work can help you to separate work life and home life more effectively, to give both work and free time the dedication and time they deserve. A home office in a separate room can be a great way to do this, with the ability to shut the door at the end of a workday and return to your personal space and lifestyle. If you have the space and funds, you could even consider installing a garden room. These spaces are often unattached to the home and can be shut up and locked at the end of your working day, giving you a very small commute in the morning that may give you just enough of an illusion of going to the office to make your home feel separate from work again.
#9 Always Saying Yes
It can be tempting to say yes to every customer, query, offer and opportunity when you first set up your business, but you need to ensure that you’re not stretching yourself or your resources too thin. Time and money are precious when starting up a business, which means you need to be careful about what you agree to at first. Stick to your core goals where you can and only say yes to opportunities and additional projects that you have the time for, or that will definitely benefit your business in the long term.
#10 Not Having The Right Insurance
The nature of your business can really change which business insurance policies will be best for you and your customers. For example, a home chef or baking company may need a more in-depth and specialised public liability insurance policy than a graphic designer, who would also need a different insurance policy from a home hairdresser. Our team is on hand to help you work out the best insurance policy for your business, all you have to do is get in touch!
For more information about starting a home business and finding the best insurance for your business, contact Ashburnham Insurance on FREEPHONE 0800 1696137.