Reasons Businesses Fail – Don’t Let Your Small Business Fail
Every business has its challenges to make sure it is successful but small businesses and home businesses have their own unique challenges. While large businesses and franchising is business slides challenge to start, small businesses have much less support and direction than a well established large company. Advertising and marketing is usually a huge weak point for the inexperienced business owner and can be a root cause of failure. This article will go over some of the reasons small businesses fail and things that can be done to help prevent that failure.
Reasons Small Businesses and Work at Home Opportunities Fail
Unlike traditional businesses, small businesses (especially work from home opportunities) don’t have the accountability factor a large business does. For example, when you start a franchise you have a lot of things keeping you on track. Even though you ‘own’ the business there are store hours, employees that need your direction, customers that expect you to be there, business partners to answer to and usually the fact that you left your full-time job and have to make the business work to pay the bills. All these things hold you accountable and keep you on track with a big business, but this isn’t the case with a small business. Since most people are used to having a job with a boss and a set schedule, running a business is difficult to adjust to. When all these accountability factors aren’t in place a person tends to slack off and let the business slide when there is nothing around that ‘requires’ consistent action.
Another Big Reason
Another reason there is a higher failure rate with small businesses is that anyone can start one even if they have no experience with owning a business. The average person can’t start a large business or franchise that has successful marketing and support because it takes hundreds of thousands of dollars in the first place. Plus, the franchisor or business investors usually require previous business experience and a lengthy training period before a franchise can be opened. There are plenty of other reasons but these two alone are enough to keep anyone that isn’t 100% serious about starting a business from opening a large scale company.
This is usually not the case with a small business. Many small and home based businesses can be started for well under $1000 which makes it very affordable for most people. This affordability is one of the problems many times. Since there isn’t a lot of money tied up in the business it is much easier to quit or slack off when hard times come or when the owner loses focus. This would never happen if the person had poured hundreds of thousands of dollars into the business, left their full time job to run it and had a family depending on the business to succeed so the mortgage can get paid.
The Biggest Problem Small Businesses Face
Marketing and advertising. The average small business owner starts a business because they enjoy and know how to do their job very well. They figure they will start a business of their own doing the same thing. Why not make all the money for what your doing instead of just an hourly wage? Sounds logical, right! The problem is that even though a person may know how to do the work well doesn’t mean they know how to find the leads that produce the sales and work for the business. Without a productive marketing and ad campaign it doesn’t matter how well you can do something if the leads and sales aren’t there in the first place. There are many different ways to market your business. The good news is that the internet provides endless ways to promote your business, many of them free. Make sure you do research and find a marketing campaign you are comfortable with before starting your business whether it be online or a traditional method.