The lack of planning and preparation is often the reason behind a home based business breakdown. Some people wrongly believe that a home based business is so simple and requires very little work. But such false notions can lead to disappointment. Let’s set straight some of these false notions.

A home based business requires very little start-up capital. Some people choose a home based business because they don’t have the money to start a traditional business. Yes, it is true that an online business requires less financing than a conventional business. However, you’re not completely free from financial obligations and there would always be expenses involved.

For instance, you’ll need to invest on a reliable computer and other office equipment. You must set up a website and launch marketing campaigns to promote it. You must secure business licenses and registrations to be legal. Yes, being financially ready is important when starting a home business.

I can enjoy my profits right away. In order to focus on their home based business, some people chose to quit their day jobs even before the business becomes a stable. If you plan to leave your regular employment in exchange for your business, you need to make sure that you have enough funds in your savings to support you and your family for the next 6 months or more.

The truth is, you may need to wait a few months before you can make real sales and enjoy your profits. During this stage, it is important to have a solid financial resource for you and your family.

I can enjoy more free time for myself. Another common misconception about home based businesses is that you can have more free time to spend. Yes, being a home business owner gives you the freedom to work at the time you choose but it does not exempt you from all the tasks and hard work.

In fact, many home based entrepreneurs found out that they needed to devote more than 8 hours of their time each day. There are home based owners who work overtime or even on weekends and holidays just to keep up with the demands of the business. In order to balance your time between yourself, your family and your business, you’ll need to set a definite schedule and strictly adhere to it.

Managing a home business is so easy. If you were used to doing the same routine tasks every day when you were employed, you’ll realize that managing a home business is very, very different. For one, you’ll need to take on not just two or three different tasks but numerous tasks on your own.

Even if you decide to hire workers to assist you, you still need to monitor the tasks you have assigned to them. You are also expected to make major decisions for your company. Without training, all these duties and responsibilities may not be as easy as you think.

It’s all about internet marketing. Yes, promoting products and services online is a tremendous help for a company. But it’s not all about online advertising. Offline marketing strategies will always be part of business promotion. Since not everyone spends a lot of time online, you still need to learn about direct mail advertising and print advertising such as sending postcards, brochures and flyers to prospective customers.

About the Author

Luie De Von is a marketing consultant with Easy Postcard Marketing and has been providing consumers and business owners with marketing strategies. For years he has helped businesses to have more and growing clients through home based internet businesses and homebased business tips.

Learning how to differentiate legitimate home business opportunities from scams is important.  At first glance, all work-at-home businesses or dropshipping businesses offered in the market may seem genuine but once you take a closer look, you’ll see that many of these opportunities are actually rip-offs. Take a look at the following signs of home based business or dropshipping scams:

No track record of history. One of the best ways to find out whether a dropshipping opportunity is fake or real is by checking the dropshipping company’s track record.  This isn’t possible if the company is too new or has only been in the business for a few months or less than a year.

Find a dropshipping company that has been in business for at least 5 years or longer so you can use its track record to check its legitimacy and stability.  Also, check from the Better Business Bureau if the company has received any complaints from its clients in the past.  If there were complaints files against the company, examine how these conflicts were resolved.

No physical address and telephone number. A real dropshipping provider must have a physical location where its main operations take place.  Whenever possible, personally visit the manufacturer or supplier you intend to partner with.  If it’s not possible to visit, check the validity of the address that the dropshipper advertises.  Perhaps you may ask some friends or relatives who live near the area to check out address for you.

Most dropshipping scammers use fake addresses or do not give out this important information at all.  Scammers often request interested applicants to call their cell phone number or send an e-mail to get more information.  Instead of using their office, seminars may also be held in hotels, parks, diners and other public places.

Pay now, earn later. Are you requested to send in a one-time payment through money transfer?  Are you required to pay a “registration fee”, or “membership fee”  to get hired.  If so, then this is a major red flag that the dropshipping business could be a scam.  If you’re encouraged to invest a considerable sum of money to receive your “starter kit” or “sales kit”, it would be best to look for another opportunity that doesn’t require any payment.

Product descriptions are not clearly defined. What exactly does the dropshipper sell?  What kind of products does it offer?  Is it know to manufacture or supply high-quality products?  Real dropship providers should be able to clearly define what they offer.

To be sure, it’s wise to ask for samples of the products that you’ll be marketing.  Do your own research and find out feedbacks from customers who had the chance to use the product.  Are they satisfied with the product they received?  Was their order delivered on time?  Did the product arrive in good condition?  These are important aspects of the dropshipping products you need to know.