What Not to Do When Starting a Home-Based Business

A home-based business is a popular way to branch out into being your own boss. They can be relatively easy to launch compared to brick-and-mortar businesses, some requiring little more than an internet connection and a web presence. However, the ease of starting one can be a double-edged sword, and there are several common mistakes that can harm your new venture if you aren’t careful.

Fail to Think of It as a Real Business

It can be easy to make this mistake in part because others may see your home-based enterprise in this way, from strangers on the internet to your family and friends. However, when you make the mistake of not taking it seriously, many other errors can cascade from that. You might not give your venture the time it needs, thinking of it as something you need to fit around chores and other responsibilities.

You might fail to think like a professional and end up undercharging for your services, or you might make financial errors, such as not keeping your personal and business accounts separate and failing to do your taxes correctly. You might not have looked to local zoning laws or other regulations that could affect how you operate. Don’t be distracted by the home-based part of this enterprise. Set out to run it just as you would any other kind of business.

Neglect Unexpected Funding Sources

One of the attractive aspects of a home-based business is that it can be started with very little money. However, if you do have some cash, it can help you in several different ways, from being able to hire someone to design your website, to being able to stock up on plenty of supplies, and much more. When you’re looking for funding for your business, be sure that you are thorough in exploring all the different avenues. You might not be aware that if you have a life insurance policy that you no longer need, particularly if you are over 65 and your policy’s face value is more than $100,000, you may be able to sell it. You can find out more about what your policy is worth and see how you can sell it with Policy Bank.

Fail to Set Boundaries

When you’re working from home, it can be easy to lose track of your boundaries. You might feel as though you’re never off work and that if you have an hour here or even a few minutes there, you need to be working on your business. There can be boundary issues in terms of space as well. It’s better to have a dedicated space where you do your work rather than doing it from bed, even if your alternative is the dining room table.

You’ll need to think about how to enforce boundaries with family and friends as well. To them, it can look as though you’re not really working, and they may expect you to take on additional tasks or drop everything to meet them in the middle of the day. Finally, it’s important to set boundaries with clients or customers. Otherwise, you may find yourself trying to fulfill requests at all hours of the day and night or in the middle of a family holiday.

Tech Issues

Not all home-based businesses are online, but most are, and even those that aren’t usually have an online element. You might tutor or cut hair or see clients in some other capacity from your home, but you probably still have a web presence. Be sure that you keep your website regularly updated and that you carefully research any software that you use for your business. If you’re using scheduling software to book clients, you want to make sure it’s reliable. If you keep client data online, you also need to make sure that it is securely stored. Find out what kind of regulations you need to observe regarding the privacy of your customers or clients.