Going Broke?
Going Broke Building an Online Home Business?
Copyright 2005 © Craig Binkley
If you ask a home business owner why they decided
to start a business, you can expect to get a wide
variety of responses. One of the most common may
be this: “I want to get out of debt”. Many
people worldwide are burdened by debt and see a
home business as a legitimate way of escape.
Sound familiar? I’m sure to many reading this –
it does! It appears to be the perfect remedy.
The home business owner can spend as much or as
little money as he deems necessary to build his
business. The profits are his, not a company
that he works for. What could be better?
The problem with this scenario that I have
noticed, either by word of mouth or through
Internet forums, is that many people are going
broke trying to build their business. I have
heard and or read comments from so many people
that they just can’t do it any more. Where
did they go wrong?
Before I attempt to address this, let me stress
this point. I’m sure you have seen the claims
(some are probably true, others may be exaggerations)
from so-called successful business owners that
they max-ed out their credit cards, took second
mortgages, etc. before they became successful.
Let me say that this is not the way it has to be
– or the way it should be for that matter.
Remember that the reason you started your business
was to get out of debt. Why go deeper into debt
trying to build your business? Debt is slavery
and the deeper you go into it; the longer you will
be a slave to it.
With that said, what can a person do to avoid this
pitfall while trying to build an online home business?
1) Have a business plan: If you don’t have a plan for
your business, you are set up to fail. Write down
what you want to accomplish and how you intend to go
about it. Set goals for your business. Don’t make
them unreachable – start out small and “stretch”
out your dream as you go.
2) Set a budget: This is a must!!! If you don’t set
a budget (and stick to it), you may become one of
the “former” home business owners that fell into the
same trap. Set a budget that you can live with.
This may mean cutting back in other areas
(entertainment, etc) to be able to have this money
available. Determine what you can afford and stick
to it.
3) Avoid Credit Cards: While credit cards are nice
to have, they can be a serious stumbling block in
trying to stick to a budget. Now I know that things
done online are usually done with “plastic”, but if
possible, stay away from this trap. Get yourself
a debit card from your bank. It works just like a
credit card but the money comes from your checking/
savings account, rather than borrowing from a bank.
4) Advertising: Search out advertising avenues before
jumping in and spending your hard-earned money.
Check with other home business owners for their
experiences with a certain company or product. What
ever you do, don’t fall for all the hype that you
will no doubt see coming your way. Every site you
check out or every product promoted will the “the
last one you will ever need”.
5) Reinvest: Reinvest your profits back into your
business when possible. This is the best way I can
think to get your business going in the right
direction. Many people will make that first sale
and get that commission check and they are off to
the store to buy the newest electronic item, etc.
Take that profit and stick it back into your business.
Let it build on itself.
Don’t be afraid to ask questions of those that have
become successful in their own business, but also
remember that what works for one person may or may
not work for another. Don’t blindly throw money at
your business and expect to get the results you are
looking for.
In short, be good stewards of your money. I know
that it can be very tempting (especially when you
read comments from others that are having success)
to open up the checkbook and start pouring money
into your business. When you go for that checkbook,
remember that getting out of debt was the reason
you started this venture in the first place.
About The Author:
--------------------------------------------------
Craig Binkley owns the work from
home directory website located at:
http://www.workfromhomehelper.com
Come by and visit us today!
--------------------------------------------------
NOTE: You have full permission to reprint this
article within your website or newsletter as long
as you leave the article fully intact and include
the "About The Author" resource box. Thanks! :-)
Copyright 2005 © Craig Binkley
If you ask a home business owner why they decided
to start a business, you can expect to get a wide
variety of responses. One of the most common may
be this: “I want to get out of debt”. Many
people worldwide are burdened by debt and see a
home business as a legitimate way of escape.
Sound familiar? I’m sure to many reading this –
it does! It appears to be the perfect remedy.
The home business owner can spend as much or as
little money as he deems necessary to build his
business. The profits are his, not a company
that he works for. What could be better?
The problem with this scenario that I have
noticed, either by word of mouth or through
Internet forums, is that many people are going
broke trying to build their business. I have
heard and or read comments from so many people
that they just can’t do it any more. Where
did they go wrong?
Before I attempt to address this, let me stress
this point. I’m sure you have seen the claims
(some are probably true, others may be exaggerations)
from so-called successful business owners that
they max-ed out their credit cards, took second
mortgages, etc. before they became successful.
Let me say that this is not the way it has to be
– or the way it should be for that matter.
Remember that the reason you started your business
was to get out of debt. Why go deeper into debt
trying to build your business? Debt is slavery
and the deeper you go into it; the longer you will
be a slave to it.
With that said, what can a person do to avoid this
pitfall while trying to build an online home business?
1) Have a business plan: If you don’t have a plan for
your business, you are set up to fail. Write down
what you want to accomplish and how you intend to go
about it. Set goals for your business. Don’t make
them unreachable – start out small and “stretch”
out your dream as you go.
2) Set a budget: This is a must!!! If you don’t set
a budget (and stick to it), you may become one of
the “former” home business owners that fell into the
same trap. Set a budget that you can live with.
This may mean cutting back in other areas
(entertainment, etc) to be able to have this money
available. Determine what you can afford and stick
to it.
3) Avoid Credit Cards: While credit cards are nice
to have, they can be a serious stumbling block in
trying to stick to a budget. Now I know that things
done online are usually done with “plastic”, but if
possible, stay away from this trap. Get yourself
a debit card from your bank. It works just like a
credit card but the money comes from your checking/
savings account, rather than borrowing from a bank.
4) Advertising: Search out advertising avenues before
jumping in and spending your hard-earned money.
Check with other home business owners for their
experiences with a certain company or product. What
ever you do, don’t fall for all the hype that you
will no doubt see coming your way. Every site you
check out or every product promoted will the “the
last one you will ever need”.
5) Reinvest: Reinvest your profits back into your
business when possible. This is the best way I can
think to get your business going in the right
direction. Many people will make that first sale
and get that commission check and they are off to
the store to buy the newest electronic item, etc.
Take that profit and stick it back into your business.
Let it build on itself.
Don’t be afraid to ask questions of those that have
become successful in their own business, but also
remember that what works for one person may or may
not work for another. Don’t blindly throw money at
your business and expect to get the results you are
looking for.
In short, be good stewards of your money. I know
that it can be very tempting (especially when you
read comments from others that are having success)
to open up the checkbook and start pouring money
into your business. When you go for that checkbook,
remember that getting out of debt was the reason
you started this venture in the first place.
About The Author:
--------------------------------------------------
Craig Binkley owns the work from
home directory website located at:
http://www.workfromhomehelper.com
Come by and visit us today!
--------------------------------------------------
NOTE: You have full permission to reprint this
article within your website or newsletter as long
as you leave the article fully intact and include
the "About The Author" resource box. Thanks! :-)
0 Comments:
Post a Comment
<< Home