Why Home Businesses Fail

Written by: Don Miller

Posted on November 5, 2007 
Filed Under Starting your Online Business

By Peter Grunder

At one time or another, we’ve all fantasized about creating our own business and being so successful that we can tell the boss or manager to “take a hike and lose the compass!” It’s exciting to consider the possibilities. But then the fears creep in. We’ve all heard stories about people who have joined a home-based opportunity full of hope and faith, only to unwind shortly thereafter and fail miserably… and lose some hard-earned cash in the meantime. And some of us have lived those stories!

I have been on both sides of this continuum, succeeding more often than not, but with enough range of experience from both myself and others I’ve worked with to offer some perspective. Let’s take a look at some of the underlying causes of failure that are not always discussed. You might be surprised to hear that the lack of money is not the main reason for failure.

There are several reasons why people fail in business:

Lack of Discipline and Consistency
This is a big one. Most people get the idea that they can make millions by simply signing up. The money will just roll in. The streets are lined with gold and all you have to do is bend down and pick it up. Wouldn’t it be wonderful if this were true? Or would it?
Developing the discipline and consistency necessary to be successful in any endeavor is part of what makes success so sweet. There aren’t many accidental success stories. It takes tremendous discipline to be successful in anything — including a home business. It’s like going to college or getting in shape. You will not make it through college if you only study one day in each semester. Similarly, you will not get in shape with one “power walk” on just one day. Once you know what is required daily, learn to discipline yourself and be consistent. Amazingly, consistency and discipline not only elevate you to higher levels of success, they also make your work so much easier!

Lack of Personal Growth

Most people have it backwards. They think that one becomes a millionaire and then starts thinking like one. But it’s the other way around. Before you can be successful, you have to think like a successful person. Your thoughts, words, and your imagination will affect whether you succeed or fail. Personal development of your attitude and communication skills is a must. It’s hard work and it takes discipline. You will have a hard time succeeding without protecting and working on your attitude. This is especially true after some failures. This is a learned skill.

Lack of Direction (A Plan)
Most people who start a business have little or no idea how to succeed. Therefore, it is extremely important to find a sponsor (or mentor) who has the time and experience to take you by the hand and guide you through the maze — step by step. Be sure this person will actually have (or make) the time for you. Ask specific questions about what kind of support you can expect from them. If you’re already in a program and your sponsor is not helping you — find someone who will. Sit down with them and create a plan of attack, set realistic goals and then learn everything you can to help you succeed!

Lack of Marketing Skills
There once was a time when you were told to make a list of all your family members and friends to build your business. Today, most of the prospecting is done via advertising and marketing. That’s good, because you don’t have to talk to your family (they might say “harass them”) to build a business. The other side of the coin is that it takes experience to compete for these sales. If you do not have much marketing experience, be prepared to learn as much as you can about it. Don’t panic about this…you are also a consumer, so your common sense can take you a long way if you are willing and teachable. Still, it’s good to get a clear picture of what kind of marketing training will be made available to you in your new business. Finally, it’s your job to continue to learn how to market…it’s a continuous process.

Wrong Expectations
This is sometimes the fault of the person who brought you into the business, who just wants to make a sale. People are being sold the idea that all you need to do is get in and the money starts rolling in without doing anything. Sometimes it’s the new person’s fault, because they only hear what they want to hear or they think they know better. Bottom- line, building a successful business is not a 60-yard dash but a marathon.

Quitting Too Soon
This is probably the biggest reason. People “try” to work the business for a few weeks or even a few months and then quit and they’re on to their next failure. First, you can’t try any business and succeed. You need to work the business to succeed. Have you ever done anything in life halfway and succeeded? With that attitude, you’ve failed before you’ve even started. You need the attitude of “I will do whatever it takes to succeed” (I’m not talking about illegal stuff ). It’s a mindset. Will you throw in the towel after 50 “no’s”? I had 200 “no’s” before I made my first sale and I was willing to go to 1,000 if I had to. Just imagine if I’d quit after the 199th “no.” You have to fill your pipeline of prospects. Now I have people joining me whom I talked to months ago.

Don’t Ever Give Up!




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Comments

One Response to “Why Home Businesses Fail”

  1. Colin King on November 9th, 2007 6:05 pm

    This post should be a must-read for anyone even contemplating getting into IM or any other business. The only thing that I would add is to know people (in 2 ways).

    Know them as in networking, develop a mastermind group where you can support each other.

    Know them, as in how they (your prospects) think. Get a job in sales, learn how to overcome objections etc.

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