Home Advertise Contact Blog Advertiser Login High-Yield Investments
Newsletter Signup

Business Opportunities
Change Your Life Get Into Business For Yourself Online Business Opportunities
Home-Based Business Opportunities
Licensee Opportunities
Low Cost Opportunities
Distributorship Opportunities
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

Expanding Opportunity Services - It has always been our mission to provide the best customer service possible and have recently added no cost training and coaching sessions for all active advertisers. Now, we are going a step further to address the one major problem faced by opportunity owners–lack...

Drone Technology - Don’t think drones and franchises and businesses opportunities have anything in common? Think again. Drone technology is transforming the way many industries tackle a wide range of everyday services.

Drone Technology - Here is a look at how drones are impacting the way businesses...

Better Salespeople - “One thing I do know is you have to be able to sell if you own almost any type of opportunity and if you can't you should hire someone who can. Problem is what type of person makes the best salesperson that you can count on and why?", says business opportunity...

Business Opportunity for Sale

Sponsors

Get a piece of the BILLION DOLLAR APP INDUSTRY! LOCK IN A TOP POSITION. Click of Call Bill Toth Phone: (716) 345-1888
Need To Fill Positions Fastest Growing, All Inbound Call, Direct To Consumer Distribution Team In The USA! 217-718-4744
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
Home-Based Business ownership can be the most rewarding endeavor you will ever undertake. The new year... Read On
Flexible work schedule, no experience needed, and complete training and support available!
Be A Distributor
Work-at-Home
Small Business
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!

Live On Your Own Terms
Related Blog Posts
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....
Live On Your Own Terms
19 Apr 16 Posted by: Todd Hatch
in Start-Up

StartUp Marketing - There is a wave of sheer exhilaration that comes with finishing your product or getting your startup to the starting line. But according to many entrepreneurs, that’s when the real work begins. People need to know what you have to offer before you can make money.

StartUp Marketing...
Live On Your Own Terms
28 Mar 16 Posted by: Kevin James Culp
in Start-Up

StartUp Financing: Are you having trouble getting people to buy your expensive products or services? Whether you are offering a business opportunity or a franchise, you are not alone.

StartUp Financing: Even after your target audience is sold on the worth...
Live On Your Own Terms
29 Dec 15 Posted by: Kevin James Culp
in Start-Up
Funding is the lifeblood of any business. The principle reason entrepreneurs put off starting their own business is lack of it. Raising funds from venture capitalists, friends and family is fraught with danger and is often very time consuming. Funding your business by mortgaging your home is risky too....
Live On Your Own Terms
14 Dec 15 Posted by: Kevin James Culp
in Start-Up
Who are the types of people who buy a business opportunity or small franchise According to people in the field, this type of career move appeals to a wide range of personalities. If you’re worried that you don’t have what it takes, relax....
Live On Your Own Terms
Featured Listings
Entrepreneur
Be Your Own Boss

The Billion Dollar Salesman -Serving the World for 28 Years! I’ve truly lived a blessed life and I have also been fortunate to have many mentors that provided me with guidance and motivation. As a result of learning how to do things the right way the companies that I’ve owned have generated just...

Read More

Opportunity Video Spotlight

United Games! The first and only business that will pay you 24/7 365 days a year when people are watching NFL, NBA baseball, soccer, cricket, rugby, hockey in fact any major sport anywhere in the world.

Premium Sponsor


Launch a local deals website and Loyalty program. Turn-key local deals website setup on your own domain! 100% your business. Keep 100% your sales. Work on your time! No Experience Needed.

Benefits of Launching a Perks Nearby Business Are As Follows:
  • Exclusive to your area and Deals website and app
  • Loyalty Program and Your own brand & logo
  • 100% your business, you keep 100% of the sales
  • Work on your time and Multiple revenue streams
  • Web & Mobile Deals
  • Loyalty Program and Social Deal Apps
  • Text Deals and Affiliate Deals
  • Innovative technology and Marketing support
  • Training and support
Perks Nearby provides a turn-key and loyalty program business that gives you everything you need to be successful in your community.