I recently read an interesting article on ‘BusinessKnowHow.com’ which outlined the 7 reasons why small businesses fail. The article also offered some useful insight on how to avoid these common pitfalls.
I have been running a home business since 2006 and I attribute much of my accomplishments to my ongoing pursuit of information and strategies that enable and empower me to succeed. Some of what I read I discard, but often I read things that strike a cord and stimulate change in my own business. This particular article offers some valuable insight for small business owners, so I have decided to review each of the 7 reasons and provide my own reflections in the hope that it will help to guide other small business owners.
Why Small Businesses Fail – Starting for the Wrong Reasons
The first reason why small businesses fail, according to this article, is because people start their business for the wrong reasons. The article suggests that if you are starting your business for your own personal gain (i.e. financial gain or freedom from being told what to do by a boss), then the likelihood of succeeding is dramatically reduced. This may come as a surprise, but I certainly agree with this point.
If you are starting your business because you want to make a difference in other peoples’ lives, then you have a greater chance of succeeding. To be successful in business you should actually aim to offer something of value that nobody else is offering.
So does this come as a shock? Did you think that the motivation to be your own boss would be enough to drive you to success? Did you think that you desire to earn more money would be enough to spur you on? Building a business certainly takes persistence and perseverance, but this alone is usually not enough to stand out from the crowd.
Why Small Businesses Fail – Focus on the Right Reasons!
Although the article suggests that if you started your business for the wrong reasons then you are less likely to succeed, I believe that there is a caveat to this suggestion. There is no reason why you can’t shift your focus and start looking for ways to make your customers lives better. In fact, this could lead you to discover an untapped market in your niche.
Can you offer something else of value to your customers that will actually cost you very little? For example, you might be able to provide supplementary information that not only demonstrates your knowledge and builds trust with your customers, but also helps them in some way. Another example that might give you the edge over the competition could be something as basic as simplifying the ordering and purchasing processes for your products.
Why Small Businesses Fail – Refocusing My Business Goals
I’ll be the first to admit that I started my Network Marketing business because my eyes were opened to the potential for achieving financial freedom. When I was introduced to Network Marketing I saw for the first time how I could earn passive residual income and I got excited! If you are not familiar with the term ‘passive residual income’ then please follow the link below for details:
I learned pretty quickly that a desire to generate a passive residual income stream for myself was not enough to actually get one! In fact, I began to realise that the success rates in Network Marketing are quite low because everyone tries to build their businesses in the exact same way and it usually involves pestering friends and family! I knew that this approach wasn’t right for me, so I opted for running newspaper adverts and working the cold market instead.
I managed to generate a decent number of leads and I gave a lot of one to one and small group presentations to strangers. I even had some success doing this, but it was hard going and it wasn’t long before other representatives from the company started competing with me! Other people started using my lead generation methods and I couldn’t always get advertising space. I did something similar using Gumtree and once again I was met with fierce completion. It was time for a rethink!
My first big breakthrough came when I realised that there were already people searching for the products and services that I had to offer. I just had to teach myself Search Engine Optimisation techniques so that they could find me! I also noticed that it wasn’t particularly easy for customers to order my company’s products at the time. It would usually involve them contacting a representative who would then place the order directly with the company on the customers’ behalf. I did this for my new customers for a while, but it was apparent that when someone has made a buying decision they generally just want to place their order. I decided that I would help them to do just that and I this was the turning point in my business! I was doing something different and I was able to stay ahead of the competition by refining my marketing techniques and giving my customers what they wanted.
That year I was the 11th highest customer enroller in the entire company (at the time they operated in 15 countries worldwide). I received an award at the International Convention in Salt Lake City and when I attended the event I realised just how many people I was able to outperform by thinking differently. From that day on, I have known that in order to stay ahead of the competition I had to keep finding new ways to make my customers lives better in some way!
Today I provide health information in the form of my e-book: ‘The Complete Health Toolkit Workbook’. Although I promote nutritional supplements I have used my knowledge as a former healthcare professional to help my customers. I provide free goal specific training programmes and general health advice. I am probably biased, but I believe that this is one of the most comprehensive resources for improving health and fitness and its free!
Why Small Businesses Fail – The Only Way to Fail …
I want to be clear that I am by no means a top producer in my company, but I am able to generate a decent additional income stream with my home business. What’s more, this income is passive residual income which I now earn regardless of whether I do or don’t actively work my business.
One of the things I love about Network Marketing is that the only way you really succeed is by helping others to succeed. Now that I have the knowledge and strategies for marketing online I am able to teach my team how to do the same. When they succeed, I succeed which really is the perfect Win Win situation. I am able to offer more to my associates because I am able to teach both internet marketing techniques, as well as traditional word of mouth marketing strategies.
To find out more about the Network Marketing company that I represent and to register for a copy of my business partnership proposal, please use the link below:
One thing that I know for sure is that the only way to really fail in Network Marketing is to give up! Success means different things to different people, but I believe that Network Marketing businesses are truly versatile and can help anyone to achieve their home business goals.