In the many years that we've been working from home and helping women launch and run home businesses, we've noticed that many often fall into the same traps when they first start out. To help you steer clear of them, we're outlining the top ten mistakes we've seen home-workers make and what you can do to avoid them
- Not bothering to do their homework
It's essential to gather as much information as you can about your business to see if your idea will fly. Research similar businesses, unearth your competition, see how much they're charging and work out your target market. Use books, go to trade shows and conferences and surf the Internet to conduct your 'sleuthing'. - Failing to get the support of their family
No doubt about it: Working and living under the same roof is going to interfere with your family's dynamics. A supportive spouse is important to your success, not only to help you juggle the responsibilities of work and parenting if you have kids but also to build up your confidence and boost your spirits when things don't go smoothly.
Your children's support is crucial, too. If your kids are old enough, have a family meeting and discuss how your home-based business is going to affect your family life. Explain that it will eventually be a great benefit but everyone needs to pitch in and help. Extend this same message to your parents, in-laws and other relatives as well. - Having insufficient savings to bolster cash flow before the business gets going
If you have been contributing to your household income with a regular salary and decide to try the work-from-home option, your income will take a steep nosedive for at least several months. We suggest you have six months' income stashed away to draw on for financial security. - Neglecting to write a mission statement
Just a few short sentences defining your business and your goals is all that's needed at first. State what your business involves, what makes it unique and where you would like to be three months, six months and one year (including the money you hope you'll be making). Remember: This is a flexible statement that can and should change frequently. - Thinking it's not necessary to set a schedule
It's just as important to set 'office hours' - and stick to them! - when you work from home as in the 'traditional' work world. Sure, your hours will vary day to day and revolve around your partner's or kids' schedules. But if you set time boundaries for your home business, it will be easier to give family and work demands their due. - Not carving out a work space exclusively for your business
Ideally, we'd all have state-of-the-art home offices in rooms devoted exclusively to our work-from-home endeavours. In reality, women often have to work in a corner of the family room, bedroom or kitchen. But wherever you set up shop, make sure you have a desk area, storage space and supplies that are yours and yours alone. Sharing a computer and phone line is sometimes necessary; sharing pencils and paper clips shouldn't be if you want to maximize your efficiency. - Being too timid about negotiating fees
Know your value and tell yourself your product or service is worth what you're asking. Don't price yourself out of the market, but don't sell yourself short either. Check around and be competitive, perhaps offering a range of fees for each job you're offered. After a few tries, you'll gain confidence and find negotiating a bit easier. - Getting backlogged on bookkeeping
It's essential to send out invoices promptly - clients and customers may take up to 90 days to pay, and you'll be out the income even longer if you delay in billing them. Keep a running record of your expenses too, so you know how much you're laying out for your phone bill, Internet connection, supplies and other work-related costs. - Remaining glued to your computer day in and day out
Home-based doesn't have to mean housebound! Get out now and then to network with colleagues in similar businesses, exchange ideas with other women who have home businesses or simply meet a friend for coffee. Try to join one professional organisation related to the work you do and attend local chapter meetings, a conference or a trade show. We know that participating in online chats and message boards can really help combat the isolation of working from home, but occasional face-to-face interaction is very valuable. - Believing working from home means having it all
Sorry, but 'having it all' is one of those well-publicised myths that's impossible to turn into reality. You can't have it all, but working from home allows you to control what you do have. You - not a supervisor or corporation - can decide when and how you want to work. You have the freedom to go to your children's school events, schedule family holidays and pick the most appealing projects.
But it takes a lot of persistence and hard work to juggle everything and still bring in a good income. And there may be times that you will need to enlist someone to help with child care so you can get everything accomplished. None of us are superwomen!