Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Business Opportunities to Own
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Want more sales? Need to grow your business? Use the top 7 methods to generate more leads!

If you read Friday’s blog, you know that one of the best ways to increase sales is to generate...

Are sales down? Do you need to boost sales? Check out our latest tips and tricks to increase sales fast!

Let’s be honest, if sales are low, business and moral are low. Low sales over a period of time can lead to a business shutting down. With online retail giants, like Amazon,...

To help you get inspired, we’ve collected success stories from some of the top mom entrepreneurs of 2017, or mompreneurs.

There is no question that starting your own business is tough. It requires a lot of time, dedication, effort, and money. You’re putting your financial stability, job security,...


Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Hurricane Recovery Resources for Business Opportunity Owners
in the wake of a crisis of this magnitude can be especially maddening, DisasterAssistance.gov is good place to start...
How Many Leads Does It Take To Close A Sale?
This article is now live on our blog and I know could be very insightful for many. Read On
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Productivity Hacks — Our Top 50
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
Sales Hack To Increase Your ROI and Productivity
Sales Hack to make you more money! Sales Hacks are not new, but how you use them is. We receive lots of emails.. Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
Resource Center > Article
The Top 10 Reasons Why Businesses Fail
21 Oct 10 Posted by: Kathleen C Lanza
in Start-Up
Share this Article:

According to the U.S. Small Business Administration, your chances of making it in business for five years or more are roughly 50/50.  Okay, so the odds could be better, but they could be a whole lot worse too.  As is true with so many things in life, much of how you perceive your odds depends on your attitude.

If your attitude going into any new business venture is that failure is not an option, then maybe it just won’t be.  One thing IS for certain ― having a great attitude won’t mean anything at all unless you take the necessary action to support it.  And taking the correct action depends on having the knowledge you need to do what you should or should not be doing at exactly the right time.  Whether it’s at start-up or even if you’re three years into growing the most promising business there is, no one DOESN’T fail by accident!

Simple as it sounds, the first step on your road to deciding whether or not to start your own business ― whether it’s in the form of a home-based or other small business, franchise, licensee opportunity or distributorship ― is to build your knowledge about the potential pitfalls right up front.  Of course, that kind of homework takes a lot more time and certainly space than we have here, but that doesn’t mean we can’t get you thinking.

To that end, here’s a broad-brush look at the top-ten reasons why businesses fail:

1)      Inability to Manage Loss of Revenue This is perhaps the biggest contributing factor to the failure of businesses today, due largely to the current economic downturn.  However, a good number of businesses fail for this reason even when times are good.  While it’s true that recent hard times have caught many businesses off guard, the ones that are especially at risk for failure are those that have no back-up plan for how to survive when times are tight.  Successful businesses are constantly scrutinizing their operating expenses, receivables and inventory, as well as the prices they’re charging for the products and services they provide to figure out how to cut costs and keep the cash flowing.  In essence, they are always one step ahead in planning for that rainy day ― okay, sometimes it’s a tsunami!  Of course, all the planning in the world won’t mitigate every business casualty out there, but staying one step ahead of the economy’s inevitable highs and lows sure helps.

2)      Not Enough “Know-How” You may know how to build a widget better than anyone else, hands down, but having the technical expertise to run your business is only half the battle.  Why?  Because running your own business requires tremendous acumen in doing just that ― running a business.  And believe us when we say that running things is much more complicated than it might seem.  Owning your own business requires a perfect balance of ownership with actual management skills in everything from human resources and accounting to marketing and financial planning…and everything in between, which is why having an experienced mentor to advise and counsel you is so important.  And, as a general rule, when it comes to choosing just the right mentor(s), it shouldn’t be a friend or family member!  Rarely are these individuals the successful, experienced entrepreneurs you need and can count on to give you objective feedback.

3)      Inadequate Business Planning ― Countless books and articles have been written on how to write a sound business plan.  Some plans are complex, while others are relatively simple and straightforward.  All of them are entirely necessary, especially if you need to secure start-up funding for your new home-based or other small business.  Amazingly, many small business owners who have the resources they need to get going just jump right in with no plan whatsoever.  Guess what?  Statistically, they don’t do very well.  In addition, too many entrepreneurs get into business for reasons of ego as opposed to identifying a legitimate need in the marketplace and then filling it.  Or, they don’t do their homework and then make a true novice misstep, like picking the wrong location or trying to compete with an already well-established competitor without a clear and distinctive marketing plan.  And guess what?  Those businesses oftentimes don’t last very long.  Bottom line…any start-up, no matter how big or small, needs a sound business plan from the outset if it has any chance of succeeding over the long-term.

4)      The Two Cs: Capital and Credit ― Securing start-up capital for your new business is just the tip of the iceberg.  Far too many anxious entrepreneurs think that if they have the money they need to just get things going, that’s plenty.  Actually, that’s just plain crazy.  Even the businesses with the best plans for success take at least three to six months to make any kind of profit…and that’s assuming everything goes according to plan.  To be safe, you need to have money over and above start-up to sustain you throughout the first year.  Also, be aware that overspending in the first year can be a real problem, especially if you’ve got big dreams, good credit and even remotely inflated expectations.  The key is to not spend money you don’t have or that you are not absolutely sure you can’t get back.  This holds true when it comes to fixed assets ― computers, phones, machinery, equipment ― as well as liquid assets, such as inventory.

5)      Marketing Failures ― This one is simple and really straightforward…you must have a really strong and well-conceived marketing plan.  No “seat-of-your-pants” marketing will do if you want to have a real shot at succeeding in any business, especially in the first few years when you must make a name for yourself and establish a loyal client base.

6)      It’s All About the Where! ― The old adage that location is everything really holds true in business.  Depending on your product or service, foot traffic may be critical to your doing well.  If you’re off the beaten path, that’s not good.  Of course, a lack of traffic can be made up for with a good, solid marketing plan, which goes back to our last point.  If your products and services are being marketed online, especially in whole or even in part, then hiring a company that does SEO (Search Engine Optimization) work is a necessity.  Remember, with the advent of the internet, the “where” of your business venture is not just real, it’s also somewhat virtual.

7)      It’s Not Personal, It’s Business ― Yes, it’s everyone’s favorite line when they have to do something they don’t like in business, but it doesn’t just apply when you’re trying to justify a hard-to-make decision.  The fact is that way too many self-employed or other small-business owners go under every year for the reason that they can’t separate their business expenditures from their personal finances.  You’d think it’d be common sense to NOT use that latest check from a client to pay your car payment, and you may think you’ll earn it back in no time and just replenish the stores.  Trust us when we say it rarely works out that way.  At the end of the day, any smart business owner does everything on the up and up at all times and ensures that any business-related funds stay where they belong ― in the business.

8)      Letting the Competition Get Ahead ― Of course, competition will kill you every time, but only if you let it.  It’s amazing how many businesses find their groove and then figure that things will always stay the same, so much so that they don’t have to change with the times and, more importantly, the competition.  Fact is, when it comes to competition, the only thing that’s certain is that there will be change. The truly savvy and successful entrepreneur is constantly scoping things out in an effort to always stay one step ahead.

9)      Growing Too Fast ― Growth sounds like a good thing and it is!  Who doesn’t want their business to grow and grow and grow, right?  As long as growth is anticipated and planned for, that means it can be managed and that’s good.  However, overexpansion usually connotes a lack of preparation, and that can be deadly.  Keep in mind that, especially in the first few years, slow and steady is what will oftentimes win the race when it comes to the long haul, which again circles back to the point about first-year funds ― if you’ve got what it takes to sustain you, you won’t be in such a hurry that you risk losing it all by moving too quickly.

10)   Failure to Employ New Media ― The importance of developing and maintaining an online presence in business is becoming more and more critical with each passing year.  Having a business website to drive traffic and develop and maintain customer relationships is pretty much a necessity today.  In addition, SEM/SEO (Search Engine Marketing/Search Engine Optimization) are terms and specialties that any smart business owner needs to know and value.  Add to all this the very real and growing impact of what’s being termed “social media,” and you have some of the most powerful elements of any contemporary marketing plan.  Today, businesses of all sizes and kinds choose NOT to employ at least one of these new media options at their own peril.  So beware!

Related Blog Posts
11 Oct 17 Posted by: Margaret Mallonée
in Start-Up

To help you get inspired, we’ve collected success stories from some of the top mom entrepreneurs of 2017, or mompreneurs.

There is no question that starting your own business is tough. It requires a lot of time, dedication, effort, and money. You’re putting your financial stability, job security,...
22 Sep 17 Posted by: Margaret Mallonée
in Start-Up

Young Entrepreneur's Start-Up Advice — the best advice, helpful tips, and questions for the aspiring, young business owner.

To help you decide if you're ready to start a business, we’ve compiled the best young...
18 Sep 17 Posted by: Margaret Mallonée
in Start-Up

Entrepreneur Start-Up Tips - How to Keep Your Bottom Line from Going Bust When Starting a Business

Entrepreneur Start-Up Tips - Congratulations—you’ve decided to take the plunge and make your dream a reality by
27 Jul 17 Posted by: Kevin James Culp
in Start-Up

How To Buy A Business Opportunity is not an easy question to answer off the top of my head.  I get asked this question at least once a day hence this blog post to better define my live calls I've had with potential buyers considering self-employment.

How To Buy A Business Opportunity: Business...
8 Jun 16 Posted by: Kevin James Culp
in Start-Up

Commercial Property 101: Leasing commercial space can be hugely beneficial for your business and a great way to cut down your overheads.

However, there are lots of things you need to consider before leasing a commercial property to ensure that you’re making the right decision for your business....

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
Read More

Premium Sponsor