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Never in history have more home business entrepreneurs launched more new businesses! In America, thousands of businesses open their doors every single day. Unfortunately, over 90% of them also close their doors within two years. Businesses are started with high hopes and financial dreams.
It is easy to start a work at home business, but much more difficult to build it, to make it succeed, to avoid the traps and pitfalls and frustrations and enjoy the fruits of success over the years. In working with thousands of entrepreneurs over the past 10 years, the following mistakes I see often:
1. Lack of Capital. Capital includes time, money and motivation. Some have one or two, but not all three, and they fail because they cannot sustain growth in their business. All businesses need commitment of everything you have! It may be a small business, but this doesn't mean part-time or passive.
2. Fear. Either a person has a sense of being overwhelmed by the business start-up or a refusal to master the work involved with being an entrepreneur with a home business. You need specific skills to own and run a successful business at home. Learn them and you can master a home business!
3. No Planning. ...and too many random efforts. Some home business owners try some direct mailing, offer free samples, try a little radio, etc. and then state that they've tried everything. Pick only one and stay the course. Become identified with your marketing techniques. Choose your logo, name, plan, and marketing techniques and stay the course!
4. Lack of Commitment.Building a work at home business is risky. Some people perceive the risk as huge...but home business risks are significantly less than other types of businesses. Manage your risks, limit your potential losses and understand your risks. Learn from your mistakes and go on. Stay committed!
5. Refusal to Target an Audience. No one can sell their home business services to everyone. Your Internet marketing efforts that goes to everyone is unlikely to create sales to all. Physicians specialize...attorneys specialize...So Should You!
6. Confusing Message. Be precise and specific on the exact benefits that your home business provides. And make it easy for people to contact you.
7. Choosing Wrong Audiences. A market that cannot pay or an audience that is too small results in disaster. Poor people desperately need medical or legal services, but who is going to pay you? The same when attempting to reach people that are dispersed over a large area and not easily identified.
8. Too Little Relationship Building Advertising works well for products where customers see the results. Intangible services are difficult to advertise and are mostly purchased based on the quality of the relationship. The more people know you, your professionalism and quality, the more business you will do. Build large networks of relationships.
9. Having a Product or Service that Fails to Product as Promised. Don't be incompetent. Use current technology and don't be sloppy in your delivery. Only one mistake can undermine client confidence and trust. Do your best everyday and everytime!
10. Laziness and Greed. To succeed with a home business, you must serve your customers! Sure, you must make a profit to serve them, but service is the key to success. The statement "I want to be my own boss with a business that supports me." may be true, but you still need to focus on customers first!
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