If you have been following my blog over the last few weeks, then you will know that I have been discussing an interesting article that I read on ‘BusinessKnowHow.com’, which outlines the 7 reasons why small businesses fail. I have been reflecting on each these ‘reasons’ in the context of my own home-based Network Marketing business to better understand how to help fellow home business and small business owners to succeed.
Reason number 4 is a little harder to contextualise as a home business owner, but I believe that I have some valuable insight to share nonetheless. So let’s consider reason number 4: “Location, Location, Location”.
Why Small Businesses Fail – Poor Location
At this point in the article it became apparent to me that the types of small business that were under discussion were small, traditional (bricks and mortar) businesses. Before reading reason 4, I had been able to see the relevance of the arguments for home businesses and Network Marketing businesses too.
To some extent I agree that if you choose to open a shop or a restaurant then you may be reliant on walk-in trade. But how many businesses are able to thrive on repeat custom, or word-of-mouth recommendations? Isn’t it the case today that you are more likely to trust a recommendation from a friend than being seduced by a fancy shop front? Depending on the type of business, location may be less important than a powerful, well-planned marketing strategy.
Another consideration is that premium locations generally come with a premium price tag! Location must surely be less of a reason for business failure than some of the other reasons we have already discussed, such as poor management and planning, or insufficient capital.
Why Small Businesses Fail – Constrained to a Location
I want to flip this reason on its head. I personally believe that it isn’t necessarily a poor location that leads to a small business’ failure, rather it is relying solely on the location that is the problem. Being reliant on walk-in trade leaves you at the mercy of the other businesses around you. You never really know whether someone might open a similar shop in the vicinity!
If you could remove locational constraints from your business, then wouldn’t that offer you a bigger advantage over the competition? If you were able to attract customers from further afield, or sell to a broader audience, then would that make location less of an issue to your small business?
If you own a shop, then is there the possibility to also sell your products online? I don’t mean just setting up an online store, I mean aggressively marketing your products using strategies such as Search Engine Optimisation (SEO)! It isn’t simply about having an online presence, it is about offering something unique that your competitors don’t offer, as well as being highly visible. If this sounds like a possibility worth exploring for your business, then check out the page below:
Remember that the key is to offer something that nobody else is offering. Be better than the competition and focus on what your customers want rather than what you want, as discussed in my earlier post below:
Why Small Businesses Fail – Businesses with Boundaries
One of the things that attracted me to home businesses and Network Marketing is that you are not constrained to a physical location. You are able to build your business on a part-time basis, alongside other associates all around the world. Because of the marketing strategies that I employ, it is very rare that my new customers are even based in the UK!
I have customers all around the world and 99% of them I have never met. More than 90% of my customers I have never even spoken to! However, I believe that my relative success has come about as a result of focusing on what my customers want and making sure that they can find me when they are ready to make a purchase. I offer more than my competitors and am able to build credibility and trust with my customers through my unique offers.
I If you are interested in learning more about what I am currently offering by way of training and support to my new business partners, then please visit the page below and register your details for a detailed partnership proposal: