How I Survive as a Small Business Owner
When I began my business in the early '90s, I was
fortunate. I didn't need to turn a profit, as I had just retired
from a teaching career. My business was all about having fun while
helping others. However, since I ran a family business as a child,
the businessperson in me wouldn't allow me to ignore running my baby as a real
company.
What follows is my advice to all those considering entering the
home-based business field.
Do you have enough money to
survive two years?
Many people think that just because they are working from home,
expenses will be lower than if in a store-front business. For the
most part, this is true. A home office isn't additional
rent. However, it is still an office and you will still require a
paycheck.
Treat this as any other business and ensure that you have enough
money to live on for at least two years without considering any profits from
your future business.
Watch your expenses!
In my opinion, the biggest small-business killer is
overhead. Thus, it is crucially important to keep expenses low,
monetary reserves high, and spending less than
earning. This seems like a no-brainer to most business
owners. However, home-based business owners are often a bit fuzzy
about the separation of business and home expenditures.
For example, much of my work is undertaken on my
computer. I also use my printer for printing handouts for
clients. Consequently, it is tempting to rationalize purchasing
newer, faster, sleeker computers and printers since it could be for home use as
well. Yet, instead of jumping on that fast-spending bandwagon, I
scrutinize all expenditures asking myself if the intended
purchase is want or need.
Separate work from home.
My biggest problem is knowing when to close the blinds and call it
a day. I enjoy my work and typically find reasons to extend each
working day. Not only is this unhealthy, but it could also lead to
costly mistakes due to being overtired. So, I set clear
business hours. This isn't to say that hours can't be tweaked now
and then. For example, my husband recently retired, so I may borrow
a few work hours to accompany him on errands and finish my projects for clients
afterward.
Be receptive to change.
Customers’ moods and tastes change, especially in this fast-paced
Internet-driven world. Not every business can stay
current or popular forever. So, it’s best to keep one eye open
looking for that changing wind. For me, this means that I always
consider my relevance. Additionally, are all my products
relevant? If not, I punt.
Punting for me is switching gears, taking what I do, and making it
more relevant for today’s consumer. This can only be done by reading
and noticing what the current trends are. This doesn’t mean that
I would or should change my entire business model—unless of course, my business
can’t compete at all.
Take it seriously!
When starting my small business, I didn’t consider that it would
be a full-time affair. It was a sideline, something to keep me busy
while helping others. However, when it started picking up steam and
clients began paying me, I had to decide if this would be a hobby or a
business. I chose to dive right into business
mode. If you’ve decided to do the same, treat it as a
business. Work adequate hours to support your business and keep
expenses low.
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