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The Top 5 First-Year Mistakes
Here are the top five things you should avoid. Waiting for Customers to Come to You Too many people wait for their customers to phone, or beat a path to their door. They get one or two customers through a lucky break, but never enough to even begin paying their costs. These people sit back and watch their competitors doing lots of business, and wonder what they're doing wrong. You don't want to be one of these business owners. You have to get out and actively try to find customers. Talk to people, call them, meet with them — whatever you do, don't just sit around waiting for the world to come to you! Spending Too Much on Advertising So everyone tells you the only way to get ahead in business is to advertise. Well, that's somewhat true, but you need to make sure that you stick to inexpensive advertising methods you can really afford when you're starting out. Spending hundreds of dollars for one ad in the local newspaper might get you very few new customers, and you'll have spent your entire advertising budget on this one shot ad. It's important that you make your advertising dollars go further by utilizing leaflets, direct mail or email — easily targetable campaign methods with high response rates and low costs. Remember that it's always better to spend money on an offer than on an ad, and always better to spend money on an ad than on a delivery method. Being Too Nice When you're running your own business, it can be tempting to try to be everyone's friend, always giving discounts and making sure you don't hassle or inconvenience anyone. That's well and good, until you find that your ‘Good Samaritan' act has just reduced your profit margin by half without lowering the cost to your customer by very much at all. Sometimes, you have to realize that you've got to be harsh to make a profit. Give people discounts to encourage them to buy 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 always finish last, but they're running in a different race — one with much less prize money. If that doesn't bother you, of course, then feel free to go for it. Not Using the Phone You'd be surprised how common phone fear is — if you're afraid to use the phone, you're definitely not. Many people are terrified of making phone calls, and avoid them wherever possible. I've seen more than one home business owner reduced to tears on the phone while trying desperately to hide it from the customer. If this is you, then you must overcome your fears, because talking to customers on the phone is almost as good as meeting them in person. Letters and emails are not nearly as effective 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 until you get used to it. Alternatively, you could try working in telemarketing centre 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 for you. People seem to especially overspend on design services. You might think it'd be great to have fancy graphics all over your website, but will it really increase sales? 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 the service they're going to provide will increase your profits by more than the amount you're spending — if you're not sure, try it yourself first because you can always upgrade later.
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