The 10 Common Reasons Why Most Home Business Opportunities Will Fail
The one fact that most people do not realize about starting a business opportunity is that around 90% of all businesses started will fail or go out of business within their third year. Some business will never make it past the winter depending on their product or service. This is just fact. This statistic is not secluded to traditional, international, home-based, or any other type of business opportunity individually. It includes them all. Let’s run through the 10 most common causes of failure in a business opportunity.
1. Under capitalized – Starting and operating business costs money. If you run across a business opportunity that has a no cost start-up and no operating expenses……run! Without sufficient capitol to keep your business going, until it is profitable, it will sink. No doe, no show.
2. Lack of a System – Most new business owners, of course, have very little knowledge about running a business and have no mentor, or go-to man. They are left alone to succeed which can be very difficult without the lack of experience. This is probably the reason why most self-made millionaires attempted and failed and several businesses before they were a success.
3. No Mentor – This goes hand in hand with the lack of a system. In business it is everyone for themselves. Business is a cutthroat operation. The strong survive and the weak die. To go and ask the donut shop around the corner how he made his store successful is compared to presidential candidates asking each other their campaign secrets and techniques. You might as well ask him to turn over to you a portion of his bank account.
4. Poor Vision – Poor vision starts from the moment you came up with your business theory or idea. Would it work? What product or service do you offer? What is the supply and demand? Is this the right timing for this business opportunity and is this the right market for it? Will my products or services hold their value and be of use long term? A lot goes into a business and failure to look forward into the future could be disastrous.
5. Location, Location, Location – This part is self-explanatory. In a traditional retail business, location is everything. You may have the best home business opportunity in the world but without the location, you are going to fail in retail. Other business opportunities don’t need location to be successful. When depending on the public for your profit, this is vital.
6. Poor Marketing – Every business opportunity will require some form of marketing to create business and to be successful. People don’t know you are selling guns unless you have a sign up or tell them you are selling guns. A poor marketing campaign will drown you quicker than any other reason for failure.
7. Lack of Ambition – It takes a pretty ambitious person to start a business opportunity. Without ambition, you are like a car without any gasoline, dead! There has to be some fuel behind the idea.
8. No Personal Development – If you think that anyone has been successful in any business opportunity without working on themselves personally, you are ignorant. This is vital. Knowledge, self improvement, positive thinking, creates excitement and motivation.
9. Poor Planning – In order to build a home, you must have everything drawn up on paper, measured out on the plot of land, and financed before you even begin. Failure to have a successful business plan, step by step along the way, will result in confusion and frustration. This is tied directly to vision. See it before you build it.
10. Bad Product of Service – You know, I believe that a good salesman could sell ice to an Eskimo or camels to the Middle East, but if you have a product that people don’t need or want, you are up the creek without a paddle. Supply and demand with a good, well priced product comes from research. Resort communities need hotels. Lakeside communities need boats and fishing supplies. Find a need and you will have a product.
June 12th, 2008 at 7:32 pm
I hate to say it but most of these are right on the money. A lot of times people think that they can have the same hours at home as they did in the office, but in fact working from home is a 24 hour job
June 13th, 2008 at 8:24 am
Of course there are answers to all these dilemmas. You CAN build a successful business given the right tools and support and source of capital. Knowing what you want, a system to get it, and the tenaciousness to not give up, instead keep looking for the answers to the challenges, will get you there…
June 16th, 2008 at 7:21 pm
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