The Five Top Reasons People Fail at Home Based Businesses

The Five Top Reasons People Fail at Home Based Businesses
Nationally, eight out of ten small businesses fail in the
first five years. When it comes to home-based businesses,
the statistics are worse: approximately 98% of home based
businesses fail. Many people cite this statistic as a
reason not to start their own business. But the reality is
that there are some very common reasons home based
businesses fail. Knowing these reasons will allow you to
prepare better and will highly increase your chances for
success in your business.

Reason #1: Lack of knowledge. Many people have great ideas
for businesses, or are "sold" a package or franchise,
without having the basic knowledge they need to establish
and properly run a business, and then they fail because
they did not anticipate the market, or their competition,
or because they just didn't spend the time to learn what
they needed to know before they started their business.
The best initial investment is to spend time learning
before you start. There is no shortage of great websites
and internet newsletters available to help you learn.

Reason #2: Lack of focus. A common misconception for
"newbies" is that if you own your own business, you don't
have to work as hard or as much. There are, indeed many
businesses, that, when established, do give you a great
deal of freedom to play more, but when you are starting the
business, until it is profitable (and I don't care what
business you name) you must focus your attention like a
laser, or the business will never succeed.

Reason #3: Lack of time. Working a full-time job, taking
care of family, and taking care of yourself leaves little
time to start a business. The fact is, most businesses
fail because the owner just didn't spend the time they
needed to doing what they needed to. You must set aside
sufficient time in order to succeed.

Reason #4: Unwillingness to invest in their business.
You've got to spend money to make money. And this is true
even for all of the "business in a box" internet business
offers available. Yes, the website may be cheap to set up,
but you have to spend the money you need to in order to get
customers in the door. It doesn't mean you have to spend
thousands of dollars, but it does mean you've got to spend
what it takes.

Reason #5: Invest in the wrong things. Spending your money
wisely is just as important as what you spend. You need a
mentor or a coach who has "been there before" to help you
weight what is important to spend money on, and what you
should pass on for now. Otherwise, you'll discover that
you have spent a great deal of money on things that produce
little or no profit.

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Mark Albertson (http://u2b-rich.com ) is a nationally known
business coach, author, speaker and attorney and helps
people succeed in business. Mark regularly coaches people
interested in building profitable businesses. For more
information or to sign up for his informative newsletter,
visit: http://www.u2b-rich.com