Home-based businesses do have some pitfalls.

Operating a small business is not just about working for yourself. It’s also essential to have basic management skills, industry expertise, technical skills, finance, and a long-term vision to grow and succeed.

A successful home-based business can absorb all your time and energy. It is because you can devote everything to your company and ignore the other aspects of your life. As a result, you may become a workaholic isolating yourself from your family and friends and negate your reason for having a home-based business. No, you are not immune to stress and burnout, which can cause family breakdown and eventual business failure.

Don’t be afraid to ask yourself hard questions about your proposed home-based business. It’s far better and safer to plan for the future than to leave things to chance. Moreover, it’s best to be able to deal with frustrations and problems while they are small.

Pitfalls and risks

While home-based businesses offer many benefits, there are a few pitfalls and risks to be aware of:

  • Work encroaching on home life. Being able to move between your office and the rest of the house fast has excellent appeal. The family needs clear boundaries, if the business is to run well all day, every day.
  • Always at work. It is a real problem with a home-based business if there are no distinctions made. It’s possible to go to work in your pyjamas; however, discipline is required to maintain reasonable standards of operation.
  • Space problems. As your business expands, you may outgrow your original space allocation and need space for an employee or new equipment. If you infringe on the rest of the family too much, there can be problems.
  • Distractions are productivity killers. Family and friends are dropping in, and the latest television news can often distract the home-based work routine. Minimise distractions if people know your practices.
  • Isolation and loneliness. You may miss the interaction with the people in your old business environment.  When going through a tough patch, organise your new support team with regular coffee breaks and discussions.
  • Procrastination. Working in a home-based business is excellent. However, there can be a lot of distractions. Only your discipline to overcome the temptation to sleep in, fix a leaking tap, wash the car, gardening; the list is endless.
  • Loss of regular income. Well, here’s the rub. You must use good financial tools or outsource your bookkeeping and have regular financial meetings. Good planning of your income streams and their reliability is critical.
  • Neighbour problems. It can be an issue and create difficulties. Loud noises, strong odours, excessive customer traffic and parking places can cause neighbours to complain and make things difficult.

Quotable Quotes.

“People say to me, “take care”, I say “take control and take action and do what you can to improve your lifestyle and be able to help others”. Peter Sergeant

“You will reduce any overwhelm and get to where you want to go faster by adjusting your To-Do List to things you love doing and becoming more action-orientated as you develop your home-based business”. Peter Sergeant

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