Before you go out and spend hundreds of dollars on product development and get all starry-eyed about bringing in the big bucks, you need to know the facts. Here are four popular home-based start-up myths to ignore and four to buy into.
There is an art and science to business success that's critical for home-based business owners to know, understand, and utilize if they want to achieve sustainable, long-term results. No, it isn't enough that you've put up a website, are passionate about your product, and been on Oprah.
Where do you begin? With so much information out there on starting up a home-based business, how can you possibly know whom to trust or what to believe? Can you expect to see a profit in the first year or not? Do you market to the masses or narrow your field? Do banks lend money for start-ups or don't they?
Before you go out and spend hundreds of dollars on product development and get all starry-eyed about bringing in the big bucks, you need to know the facts. Here are four popular Internet-based start-up myths to ignore and four to pay attention to:
Debunking Four Popular Home-Based Start-up Myths
- You'll make a profit in your first year.
Debunked: Starting-up business will not make you rich, quick.
Truth: It can take up to three years before your business sees a profit. That's three years of hard work and sustained effort. The start-up stage is not for the timid. "It takes years of working hard," according to Leslie Haywood of Grill Charms, "telling people about your company and your product before you can claim any sort of foothold on your market share."
- I love it, so will you.
Debunked: You think you have the next big "it." You love it. Your family and friends love it. Therefore, the everyone will think it's the best thing since sliced bread, too.
Truth: It's not about wanting everyone to love your product. It's about wanting your specific niche group to love your product and for them to tell all their friends about it. Create a unique product, get clear about your niche, and market directly to them. Don't make it personal. Make it business.
- A professionally done website will drive traffic to your site.
Debunked: Not unless it's optimized with your niche market in mind and for how they are searching for your product or service on the Internet.
Truth: Figure out what keyword phrases your niche market is using when searching for your product. If you don't know how to write copy for the web, hire a professional copywriter to do it for you, making your home page and product pages keyword rich. Once traffic is on your site, make it easy for them to take action by giving them buy-in options at several price points.
- Being interviewed by CNBC, Martha Stewart, or Oprah means you've made it.
Debunked: Sure, this kind of exposure will net you an increase in sales. However, it doesn't mean you've made it.
Truth: Home-based business owners who have had national coverage cannot afford the luxury of being lulled into the kind of false security that national attention brings. "John Q Public has a very short memory and attention span," says Haywood. "You're one big hit might generate great sales in the short term, but you can never sit back and rest. It is your job to constantly stay front-of-mind with your target market."
Four Myths to Buy Into
- Banks will lend money to start-ups. While it is true that banks won't give you a business loan without a business plan, you can take out a personal loan using your house or existing business for collateral. Market research goes hand-on-hand with writing a business plan. So, do the research, write your plan, and take it to the bank.
- Being your own boss is a good thing. Indeed it certainly can be if your boss is organized, has good communication skills, and knows how to prioritize. Don't become your own worst boss. To create an ideal boss relationship with yourself, learn from all the things you didn't like about people you've previously worked for.
- You can certainly save money by starting-up from home. While this is indeed true, don't skimp on the essentials for home-based business success. Make sure you have an actual home office for your business, preferably with a door. Decide what your business hours will be and stick to them. No one starts up alone; so hire a mentor, business coach or consultant to guide you through the start-up process and beyond.
- You'll be able to live and work anywhere around the globe. Yep. Just about. As long as your business is not dependent on location. And you have a good wireless laptop, a full-set of power-plug adaptors, use Internet banking, PayPal, and Skype for your Internet phone.
You never really know if a new home-based business will succeed or fail. Even with very promising starts, many fail within the first three years. Avoid the seductive lure of making money fast. Don't be swayed into thinking that everyone will love and want your product, or be seduced by national attention. Instead, research your market, make a name for yourself withing your market niche and then dominate it.
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