Every time a new business fails I get dismayed. The owners of a small business have often staked their entire capital on a new venture and they stand to lose a lot more than if a big company fails in their new venture. Before you start a new business familiarize yourself with the top 10 reasons why many new businesses fail.
1. The manager is incompetent
Most small businesses fail because the owner does not have the knowledge to run a business properly. It is advisable to do a basic business course before starting a new venture.
2. Finances are not in place
Many people start out in business without any idea of how much money is really required. If you do not know how to write a business plan get your accountant to help you. In any new start-up cashflow is king and without proper funding even the best idea will fail.
3. The Owner gives up too quickly
Any new business will be lucky to break even in their first year. Many people new to business often assume that they are going to make a fortune within 12 months. In reality less than 80% of new start-ups make a profit in their first year.
4. Advertising
There is zero point in doing a single leaflet drop to all your potential customers. There is no point in doing a single advertisement in your local newspaper. Advertising is all about repetition. Many of your potential customers will not buy your products until they have seen your marketing material at least half a dozen times.
5. Branding
Every single piece of your company has to scream out your brand including your brochures, websites, delivery vans and the uniforms that you and your staff wear.
6. Ability to close the sale
This is really an art form in itself. Some people are naturally good closers but others have to learn by reading and studying the art of closing a sell. The more you practice the better you will become.
7. Location
Location is very important to the chances of your businesses survival. Often you will have to pay more for a decent location but it can make the difference between just getting by and turning a decent profit.
8. Ability to get on with other people
We all know that we have to treat our customers with respect but what about our suppliers. If you do not pay your suppliers on time they will start quoting you higher prices. If you are rude to them they might stop doing business with you altogether.
9. Lady Luck
Some people are really unlucky; there is no getting away from this. Just hope and pray that Lady Luck smiles at you, especially in the first year.
10. Demand and USPs
Small businesses often overestimate the demand and usually have no unique selling proposition built in to their products. If people only ever need to buy one of your widgets and you make millions, chances are that you are heading for a point of no return.
Examine all the points above. If you feel that you have an answer to most of them then you are ready to take the plunge and start your own business.
Top 10 Internet Businesses
And the truth is, it actually is kind of easy, but not as easy as most salesmen would have you believe. There is a little bit of work involved, and anyone who's really been successful has put in the time and effort to get there. And they've managed to avoid the pitfalls on this list.
If you're trying to start your online business and things haven't gone as well as you've hoped so far, then hopefully, these suggestions will help.
Here are the five most common reasons that most internet businesses fail that I've seen, in no particular order:
1. Information overload
You've probably already been inundated with emails explaining how some new money making scheme is the hottest thing on the planet and you need to get in now so that you're on the cutting edge of internet marketing.
The problem is that you haven't finished working on the previous hot new thing yet, and as soon as you start this one, yet another hot idea will hit, and so on, and so on.
In every legitimate email you get, there should be an “unsubscribe” link at the bottom. Start clicking on it, and just stick with a few of the people who you know are giving you good information about building your business from start to finish in the right order without any distractions.
And make sure that you see every task through to completion before moving onto the next one. It's the only real way to get anything done.
2. The curse of perfection
Speaking of seeing tasks through to completion, also consider that not everything on your website and in your sales process has to be absolutely perfect before you can unleash it on the public.
So many home business owners who are just starting out have a habit of obsessing over every little detail forever before they'll allow themselves to launch their site.
Stop it. It doesn't have to be perfect. That doesn't mean that you don't need to make sure your website is working properly first. It means that you can work on adjusting small details, such as the color scheme, the sales copy, the images, later on. In fact, if you're planning to do any proper testing (and you should be), then you should be constantly working on those items anyway.
So get your website out there, get some traffic, make sure the big things are working right, and then worry about adjusting the small details.
3. Waiting for the “magic bullet”
Let me just start by saying that there is no magic bullet when it come to running your own business, or doing any kind of work online.
I know that a lot of salesmen make it sound that way when you're reading their sales letters, but it simply isn't true. They're lying to you. And even if they're not lying to you, and let's say their system does work, it's only going to work for a short period of time, and it's only going to make you a little bit of money. Not the millions they're promising.
That's why I constantly warn people away from the “business-in-a-box” opportunities. The result is never very good. Maybe you'll make a small bit of side money, if you're lucky. Besides, why would you want to sell the same thing everyone else is selling anyway?
The only way to have lasting success online is to have your own website that is unlike anyone else's, that you've built up into a success, with a loyal customer base, one step at a time.
4. Being a shopaholic
This goes along with #3 above. Stop paying for every new scheme that comes along because they're promising you instant riches. All that's going to do is drain you of your money.
And then, if you're like so many others, there's a good chance you'll get frustrated and give up on the whole thing, because you don't know who you can trust anymore, and you don't want to take a chance. So your dream of working from home is over before it began.
Or, maybe they're not selling you a scam, but in fact have legitimate programs that many people use successfully in their businesses. That's great, but that doesn't necessarily mean that it's right for you right now. It might be something that will be a good investment for your business later on, but you should really concentrate on getting your website up and running first. Otherwise you end up with information overload as described in #1 above.
5. Fear of technology
Just because you've never tried something before doesn't mean that you can't learn to do it. Think about pretty much everything you've ever done, especially the things you're good at. Did you always know how to do that, or did you learn it over time?
I'm guessing that you learned it, and you can learn to do a lot of the work on your website, too. I constantly have to tell the people I meet that it's in their best interest to learn at least a little bit of the technical stuff that comes with having a website.
I'm not saying you have to be a programming expert. In fact, if you need heavy duty programming done, then you should definitely get someone to do it for you. It'll save you a lot of time, for one. But there's no reason why you can't learn some of the basics of HTML so that whenever you need to make a small change to your website (such as the testing we talked about earlier) you won't have to pay someone to do it for you. And you won't have to wait for them to have the time.
It's not as hard as you think. It just takes a little time to learn it.
Conclusion
The most important point I'm trying to convey is that, in order to be successful online, you need to remain focused on one task at a time. Finish that task and move onto the next one. Finish that task and move on. And keep going until you're done.
Stop investing in every fancy new program that comes along. There are no “magic bullets” anyway. Stick to the plan from the beginning, and see it through to the end.
Starting a new website does require a bit of work at the beginning. There's no way around that if you want to succeed. But the great thing about working online is that once you have everything set up, you can put almost all of it on autopilot and bring in money 24 hours a day with a minimum of work.
So get started now, don't be afraid that you can't do it, don't get frustrated, and don't let anything distract you. You could be making very good money in very little time if you do it right.
Both Naz Daud & Mark Yarrobino are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Naz Daud has sinced written about articles on various topics from Real Estate, Ezines And Newsletters and Business Promotion. Naz Daud - CityLocal Business & Franchise Opportunities . Naz Daud's top article generates over 60500 views. to your Favourites.
Mark Yarrobino has sinced written about articles on various topics from Computers and The Internet, Web Development and web development. Mark Yarrobino is the president of Maroon Enterprises. One of their websites, Home Business Endeavors () Mark Yarrobino is the p. Mark Yarrobino's top article generates over 22200 views. to your Favourites.
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