Top 5 Mistakes That Keep Small and Home Businesses From Success And How To Fix Them
Are You Making These Top Mistakes In Your small or online home business?
Small and home business startups – online and offline are often not without one or more common mistakes that keep them from achieving business success fast.
In this post, we’ll look at the common blunders that cause failure among online businesses and bloggers. You may discover one or more business mistakes that you are familiar with and also find advice on how to fix them. Read on.
Online Business Blunder #1: Mindset of Hobby
Usually because of the low start-up costs and a job “security”, many small and home business owners fail because they treat their businesses as hobbies, unable to go “extra miles” and work a little on their businesses whenever they are broke or are threatened with dismissal at work. After that, they forget they have a business.
Action Item: Set daily actions to do in your business and commit to doing them daily at specified time. Treat your business as what it is – a business.
Online Business Blunder#2: No Definite Periodic ROI Expectation
Many bloggers and online entrepreneurs fail to put in enough efforts in their business because they have no set target for periodic (daily, weekly or monthly) returns from their efforts and business. When there’s nothing to look forward to, humans naturally tend to lose it. Some startup online entrepreneurs and bloggers just have this kind of mindset for anything business. However, if it was named “part-time J.O.B”, they would be totally alert with a different mindset and attitude toward their business. They are just conditioned to be “360 degrees employees for life”.
For this kind of ‘business people’, it is advisable to start by working on themselves and their mindset before venturing into any form of business; else they’d just lazy over serious income generating activities and never be able to put in the kind of efforts and consistency that produce success.
Online Business Mistake #3: Absence of Records
Many small and home business owners believe that record keeping is only for big, established businesses and so they deliberately fail to keep a record of business-related expenses. In some cases, they keep partial records of expenses because their start-up cost is too small for them to not consider it a risk or loss. Some bloggers and online marketers cannot even tell how much they have put in their businesses so far.
Usually because of the low start-up costs and a job “security”, some people treat their business as hobbies, unable to go “extra miles”. This kind of people work on their businesses only when they are broke or are threatened with dismissal at work. After that, they forget they have a business. -Another reason for poor record keeping by small home business owners is because they have a fall back – their J.O.B.S – in case the business fails to deliver. Is that not a failure mindset?
Action Item: Start keeping a record of your achievements with respect to: sales/ income, traffic, subscribers, social media following and more
Online Business Blunder #4: Lack of Strategy and Plan
Do you have an online business plan or a blogging business plan? It’s ironic but a lot of online marketers and bloggers do not have one – not even a mini-business plan in mind-map or a notepad.
Day in day out, these bloggers and online marketers simply do any activity that feels right, or comes to their mind, spending as much time as they feel good on any activity of the day – without care of how big or small the particular activity impacts on their overall business objectives, hence monthly business revenue.
- Get any of these: mind-map software (freemind or Bubbl.us are free tools) or a notepad or evernote. Note this does not have to be a formal, serious write-up – just draft and sketch on your notepad or mind-map. Making it sound very serious and formal usually cause entrepreurs to never get to start writing a business plan.
- Income Goal: Write down your income expectation per month, from your business – remember, “start small and be realistic”
- Set S.M.A.R.T Objectives: Write down objectives for different part of your business:
- Traffic goal could be: “I want to increase my daily blog traffic from 10 visitors per day to 20, within the next 60 days”
- Strategy for achieving goals: What activities will you be doing daily or weekly on each of those parts of your business in order to achieve each set objectives.
- Traffic generation strategy: An example could be: Daily submit 2 blog posts (day and evening) to 30 social bookmarking sites using Onlywire, and follow a blog commenting plan to comment on 5 blogs daily….etc.
- Write a similar strategy for every part of your online business process: such as list building plan, content creation plan, link building plan etc.
- Be sure to look at your online mini-business plan at the start and close of every day to implement your daily tasks and track your achievements daily, weekly (I like to track achievements weekly so I don’t get into the habit of analysis-paralysis).
Online Business Blunder #5: Doing Nothing To Leave Stagnation
Every business should have a written plan to break to at least even within the 90 to 180 days (that is 3 to 6 months) of startup. Many small and online home business owners continue to fund their businesses from their pockets or salaries, long after start-up, instead of letting go of what’s not working and searching for and implementing “what’s working now” for others so that they grow their businesses to self-sufficiency within 6 to 12 months.
Lesson: Take action on every new knowledge. Test every new blogging and marketing strategy to know what works and what doesn’t.
Online Business Blunder #6: Sticking with the Wrong Crowd
This is an extra bonus tip to the 5 already discussed above.
It’s good to hang out with successful people but not when you discover that months after months of following, you have not replicated a tiny bit of their success. Not a good idea to hang on. Many people just love staying with a popular successful person even while they have remained broke up to 6 months and more of following that “leader”. This usually happens in Network Marketing or MLM companies where some people just love to “flock and belong” to the popular camps and say “do you know that I also know John Doe?”
The only way to test if you should be there is to ask yourself how much you have become like that leader within 90 to 180 days of following. How much have you grown your business or income like him? If it ain’t working for you there, go find another leader. A particular leader may not be teaching in a style that you’ll effectively absorb while some people are doing well there.
It should be all about you and all about the interest and health of your business – how long do you want to keep following ‘a popular leader’ that’s not paying off in your business health (and bank account too)?. Time is money – how much longer do you want to keep wasting your time being a learner? It’s time you start thinking of teaching other people what you have learnt so far and if you have not learnt anything this far, get out and be useful to yourself. Are you just looking for popularity or to really EXPERIENCE financial freedom? It’s all about what’s working for you – you have to set a time frame for testing out any time and monetary investment and head over to “what’s working and where”. You cannot get back lost time, therefore use it wisely!
That’s it on the top blunders that cause online business failure and how to avoid them. I hope you enjoyed reading.
Have I missed anything? I’d love to hear it from you – in the comments area.
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Yours in success,
P.S: Sometimes mistakes are unavoidable but “Failure is success if we learn from it.”
- Forbes Best Business Mistakes: How Today’s Top Business Leaders Turned Mis-steps into Success (Book): Discover and learn how Reveal how top business and financial leaders turned their biggest mistakes into success stories.