Some mistakes new online business owners make and how to avoid them

New business owners, particularly an outsourcing company, carry with them misconceptions about the business that can be detrimental to their success. Those who’ve been there share some of these mistakes with us, and how to best avoid them:

Common Mistake #1: Treating your business as a sideline.

A lot of people get into a business "thinking they don’t have to work" and that it "works on auto-pilot". On the contrary, you need to put in your time, hard work, physical presence, and care to make your business grow. In the absence of a professional managing team, a business will always need the hands-on management of its owner. "That is why RemoteWorkmate require all our employees to log in at least 5 minutes before their shift to ensure their focus," says John Paul Grant, the owner of an outsourcing company in Philippines.

Common Mistake #2: Neglecting to improve yourself.

Being a business owner means having good people skills and having the ability to manage employees. So take courses or study articles that teach about management and self-improvement; when you improve yourself, you improve your business.

Common Mistake #3: Focusing on money too much.

Applicants must also consider if they have proposed the right location, and if they can manage the business well. Others make the mistake of choosing businesses based on the price and affordability. Although financial gain is one of the reasons to have a business, it should not be the ONLY reason. Try to instigate to your employees never to work for money. Those who work with enthusiasm and passion are the most successful because "their passion for the product and business drives them to excel, then the money abundantly flows afterwards as a result of their passion and enthusiasm."

Common Mistake #4: Charging personal expenses to the business.

Some new businesses make the mistake of charging their family’s expenses like groceries and other utilities in the income of their business; this eats up their operational expenses and messes up their financial accounting. Get a salary from the business then deduct your personal expenses from there. What I mean is to work for your own company that will strike a good result in sales, get a client that will pay for your business.

Common Mistake #5: Having unrealistic expectations.

Although the failure rate in having an online business is relatively low, all business men agree that they cannot guarantee a 100% success rate because it depends in a variety of factors. Some business man expects their employees to do everything for them, which is a common misconception. While employees are there to support and guide the business, managing the business, and running it lies on your hand. You also need to manage your expectations. To prepare for the natural highs and lows of doing business, "You should have a passion for the business you are entering." Study the market well and be prepared for the lows because there will be dips in your income. At the end of the day, your virtual staff or employees’ success actually depends on you.

Knowing what not to do helps you focus on what you need to do in order to succeed. Cheers to a great year ahead!