A lot of people are going to launch their own home based business this year, and the vast majority of them are going to fail miserably at it. For one reason or another people fail sometimes at what they attempt. Trust me, I know- my home based businesses failed numerous times before I finally found a formula that worked.
As much as I’d love to say that there’s a light at the end of the tunnel I am unfortunately forced to lay out the brutal truth: there isn’t. Building a profitable business is not something that happens overnight (unless you’re incredibly lucky)- it takes hard work, persistence, and even a bit of luck.
Here are the top six reasons (in my experience) why a home business will ultimately fail:
- 1) Product. Look at the product that you’re selling. What does it offer someone that makes it appealing enough that they’d rather buy from a smaller vendor (you) rather than a larger one, such as Wal-Mart?
- 2) Marketing. Even if you are selling a great product you need to determine how your marketing is letting people know that you exist. For many entrepreneurs (including myself) the medium most used is the internet, and reaching a customer on the internet is incredibly difficult. If your marketing campaigns are pulling their weight you’re spending money without bringing any return. After a little while the well dries up.
- 3) Laziness. Just because you’re finally working for yourself doesn’t mean that it’s time to slack off and do nothing. You need to be twice as aggressive and twice as insightful in order to make your business work. If you aren’t you’ll get surpassed by someone who is.
- 4) Scalability. Now that you’re starting to sell a fair amount of widgets you need to consider your options for expanding. Many businesses ultimately fail because they are unable to seize opportune moments to jump into the market simply because they are unequipped to handle the increased demand for their products. The result? Business suicide.
- 5) Competition. This one’s pretty obvious.
- 6) Myopia. Selling widgets won’t be enough for you to become successful. Where you’re selling widgets, your competitors will be selling widgets, widget accessories, customized widgets, and widget payment plans. Don’t limit the scope or the capabilities of your business- you may regret it.
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