As a freelancer or entrepreneur starting a business from home, it’s really easy to make common mistakes. However, as with everything else we do in life, these mistakes won’t make themselves apparent until they are too late to notice. Instead of sitting around waiting to learn from your mistakes, you should use any available resources, such as this article, to learn about the mistakes you shouldn’t make.
Learning from the mistakes of others ensures you don’t lose anything while learning the same lessons.
One of the easiest mistakes someone working from home can make is not keeping track of their taxes. As a freelancer or small business you want to use a financing system that keeps track of all your expenses, profits and budget. If you realize that you forgot to keep track of your profit/expenses a couple of months before taxes are due, then you’re going to be in a lot of trouble trying to backtrack your finances. If you overlook profits, even if it’s on accident, you could face huge penalties.
Another common mistake freelancers make is spending too much money in the beginning. Many freelancers and entrepreneurs such as Mark Zuckerberg, Larry Page, Bill Gates and Steve Jobs didn’t take out massive loans to start their projects: so why should you? All of these famous startups (Google, Facebook, Microsoft and Apple) began by delivering a basic MVP (minimum viable product).
This means that instead of buying yourself a top of the line computer, desk, office chair and printer, you should start out with the basics. Don’t hire any employees you don’t need either, or you might find your business losing money instead of making it.
The benefit of delivering a MVP as your first service when becoming a freelancer or entrepreneur is that you don’t have much to lose. If you spent a month on a project and it ended up failing, you won’t have lost as much as a project that took half a year and required ten employees.