24 Feb 2008 12:33:15 | Eric White
Even once you've got past the starting-up stage, there are still
plenty mistakes to be made, and most of them are going to be
made in your make-or-break year -- the first one. Here are the
top five things to avoid.
Waiting for Customers to Come to You.
Too many people wait for their customers to phone, or come to
the door, or whatever. They get one or two customers through
luck, but nothing like enough to even begin paying their costs.
These people sit around, looking at their competitors doing lots
of business, and wonder what they're doing wrong.
You can't be like this. You have to go out there and actively
try to find customers. Talk to people, call them, meet with them
-- whatever you do, don't just sit there!
Spending Too Much on Advertising.
So everyon'e tells you that the only way to get ahead in
business is to advertise. Well, that's true, but you need to
make sure that you stick to inexpensive advertising methods when
you're starting out. Spending hundreds of dollars for an a'd in
the local newspaper might turn out to get you very few new
customers, and you will have spent your entire advertising
budget on it.
Make your money go further with leaflets, direct mail or email
-- these are easily targetable campaign methods with high
response rates and low costs. Remember that it is always better
to spend money on an offer than on an a'd, and always better to
spend money on an a'd than on a delivery method.
Being Too Nice.
When you're running your own business, it can be tempting to be
everyon'e's frien'd, giving discounts at the drop of a hat and
making sure that you don't hassle or inconvenience anyone.
That's all well and good, until you find that your Good
Samaritan act has just halved your profit margin without
lowering the cost to the customer by very much at all.
Sometimes, you need to realise that you've got to be harsh to
make a profit. Give people discounts to encourage them to bu'y
or to come back, not because you like them or feel sorry for
them. Don't be afraid to be ruthless in your pursuit of home
business success. Nice guys don't finish last, but they are
running in a different race -- one with much less prize money.
If that doesn't bother you, of course, then feel FRE'E to go for
it.
Not Using the Phone.
You'd be surprised just how common phone fears are -- if you're
scared of the phone, you're not alone by any means. Many people
are terrified of making phone calls, and avoid them wherever
possible. I have seen more than one home business owner reduced
to tears on the phone and trying desperately to hide it from the
customer.
You need to try your best to overcome your fears, as talking to
customers on the phone is almost as good as meeting them for
real. Letters and emails are useless by comparison. The best way
to overcome phone fears varies from person to person, but it can
often be as simple as making the phone fun, by calling friends
and relatives often for a while and getting used to it.
Alternatively, try working in telemarketing for a while -- if
that doesn't make normal phone use look like a walk in the park
by comparison, then nothing will.
Hiring Professionals for Everything.
It can be tempting to think that, since you're starting out, you
should just find a company or person to do every little thing
you need. People seem to especially overspend on design
services.
You might think it'd be great to have fancy graphics all over
your website, but would it really increase sale's? If I saw it,
it would put me right off. Likewise, a slick brochure often
fails to say anything more than 'I'm going to charge you a
premium to pay for my expensive brochures'. Don't hire someone
unless you can demonstrate that the service they're going to
provide will increase your profit's by more than the amount
you're spending -- if you're not sure, try it yourself first,
and you can always upgrade it later.
About Author :
Eric White - Owner of 
