Business Failure is a Fact of Life

This year 97% of all home based businesses will fail. That statistic may seem abnormally high but just because a business does not go bankrupt doesn’t mean it didn’t fail. Much of the home based business failure occurs simply because the owner gives up and goes inactive in their business.

The causes of business failure vary. Between family and a job, some people aren’t able to put in the necessary time. Others are impatient expecting to get rich quickly. When that doesn’t happen usually they quit one program and move onto another they think will generate the millions of dollars they seek.

However, the Main Three Reasons for Business Failure are:

1) Lack of Effective Marketing

I just can’t say it enough. Marketing is the backbone of your company and often determines whether you will experience success or business failure. An average product that is marketed effectively will always outperform a superior product marketed poorly.

Customers have changed the rules of marketing so if you are using outdated methods, such as cold calling and high pressure, then you are basically cutting yourself off at the knees. Customers don’t like to be sold. They would much rather buy and using techniques that attract customers to you will net you better results.

2) Business Failure Caused By a Bad Opportunity

Sometimes the business opportunity itself is doomed from the start. With the number of scams, frauds and fake opportunities on the market today, it is not surprising that entrepreneurs sign up for programs that end up being nothing but money pits. In which case, small business failure is inevitable.

The only way to protect yourself from getting scammed is to become educated on the difference between legit home businesses and scams. Review the compensation plan, look at the marketing plan, check out the products, read reviews of the company. Before parting ways with your money, do your homework. If you don’t like what you find move onto something else.

3) Lack of Commitment

I touched on this earlier but it bears repeating. Unfortunately, what some people are looking for is not a home based business but a get rich quick scheme. It may be that they are smothered in debt or maybe really want to get out of the nine to five grind. Whatever the case, they are setting themselves up for business failure because they are unwilling or unable to commit to doing what it takes to build a business.

Without commitment, you won’t have the fortitude necessary to overcome the obstacles you run into on your way to the top. Building a business is not all rainbows and roses. However, if you are willing to accept that and to put in the time and effort, then you will create a business that will give you the financial and personal freedom you desire.

Download my free social media checklist (sign up in sidebar) for a daily to do list of all the things you need to do to increase your following. For personalized help, contact me for a free consultation on the best way to market your business online including using Twitter and other internet business tools.

For more tips on avoiding business failure, check out the articles in my archives.