Avoiding Home Based

Business Pitfalls Part 1 of 2

By Joanie Ogg, CTC, MCC
President, NACTA

Being in business for yourself can be one of the most satisfying endeavors you may ever undertake. The feeling of responsibility for your own venture, freedom of choice when deciding on your business plan and so many other reasons make it extremely meaningful and self-satisfying. As with anything we do in life, there are always some “easy to fall into” pitfalls that we want to try to avoid or to be in control of at all costs.
This article is not meant to seem negative, as I am not prone to writing in that fashion. It is more of a reality check and, hopefully, my sharing some of the common stumbling blocks will help you to skate right over them and soar to the goal of your profitable and satisfying Home Based travel business.

1. Doing Your Basic Homework
Any business, be it large or small, can fall into this hole. It is important for you to be sure that you have an adequate market for your travel business. Certainly, a Home Based travel business is a natural operating scenario, but have you thought about where you will find your clients if you do not already have a following? You are probably pretty certain you can rely on friends and family, but is that enough? How will you get the word out to prospective clients? It is not practical to hang a shingle on your front door and then look to innovative ways to go after the business. Take the time to think about the directions you will take to grow your business. It will need your expert marketing ability to achieve the goals you have set for yourself.

2. Being Self Motivated & Solo
This is sometimes difficult for someone who has been an employee prior to being an entrepreneur. You have to be a self-starter because there is no one to tell you when or how to start. If you are not hiring an employee right away (which is not typical in a Home Based agency), you will have to rely on You, Yourself and You! You will be the one in charge but also the one to do all the work. That means everything from bookkeeping to selling. Be careful not to fall into the “paperwork trap” of spending all your time doing busy work and not selling. You must be proactive and avoid anything that gets in the way of your goal to build the business.

3. Home Based vs. Traditional
Perhaps you are very comfortable working from a home office. However, some have shared that it is a difficult transition from a glitzy office building environment or a lovely storefront location. You do not typically dress up in business attire to sit in your home office. It might seem rather silly to do so — but there is something to “dressing for the part” that makes some people feel and act more professional. Perhaps you feel less professional since your business is nontraditional in nature. You are totally in control of making others see your professionalism no matter where you decide to work from. If you exude professionalism over the phone and in all the communication pieces that you send out, your clients will sense this serious focus and your commitment to your business. If you feel unprofessional it is likely you will transmit that feeling to others. Your income will be directly tied to the amount of time, effort and focus that you put into your business.

4. The Tried-and-True 80/20 rule
The Pareto Law (80/20 Principle), when applied to travel sales, states that 20% of our clients account for 80% of our income. For a travel agent, the value of this principle is that it reminds you to focus on the 20% that matters. That 20% produces 80% of your results, so identify and focus on this segment of your client base. Keep working at nourishing your relationships with these clients. Do special things to impress them and show them how much they mean to you.