Top 6 Reasons Why

Top 6 Reasons Why 95% of Home-Based and Network Marketing Businesses Fail

If you’ve been thinking about starting your own home-based or network marketing company, you may have mixed thoughts about hearing that 95% of these businesses fail. On one hand, 5% of business owners are doing something right, and there is evidence all around of successful people making tons of money for themselves.

On the other hand, the majority of business start-ups end up as little more than garages filled with unsold inventory, business cards being used for scratch paper, and often years of savings washed away.

And lessons learned, on a positive note.

But, when you’re investing your hard-earned cash in a new business, it’s preferable that you learn as many lessons as you can before you jump in without a paddle.

Going into business for yourself is an emotionally rewarding and financially lucrative venture, but it’s one that should be carefully evaluated, even when every sign around you seems to be blaring “go.”

When the urge to go into business for yourself takes up every waking breath and nighttime dream, sit down and go over the Top 7 Reasons Why Home-Based and Network Marketing companies fail, and make sure that you can come up on the other side of the biggest mistakes that people make.

Here are the Top 6 Reasons Why 95% of Home-Based and Network Marketing Businesses Fail:

  1. People go in without a plan. You know you want to be rich, and you know you want to have tons of free time to spend, doing what you love with the people you care for. But, that in itself is not a plan. If you’re thinking about starting a home-based business, or joining a Network Marketing company, critically scrutinize the type of business that calls to you, and think about what kinds of products or services you’re truly passionate about.

Then, make a business plan (yes, you’re an official business and need a business plan) that outlines your mission statement, company description, market analysis, strategy, and financial analysis, at the very least.

  1. People go have zero knowledge and even less skills. While it’s true that you can start a business that focuses on something you previously knew nothing about, you have to be willing to learn quickly and acquire new skills. Passion and visions of drinking fruity drinks on sandy beaches will only take you so far, and then it’s time to get to work, and to find out everything you possibly can about how your potential business operates.
  1. People want something for nothing. You’ve probably heard the saying, “you get what you give.” This is true in every venture of the human spirit, from relationships to business success. There will most likely be a day when you can kick off your shoes in your mountain vacation retreat, and watch your deposits roll into your checking account, from all of your residual income.

But, when you’re starting a business there is work to be done, and you need to be realistic about the effort that is required to birth a new baby, so to speak. The reward will come, when you’ve properly done the nurturing.

  1. People don’t know how to lead. A successful business needs a successful leader, or one in training. In order to build an empire, and encourage others to join you in your noble endeavors, you need to know how to lead by example, and attract others who are just as committed to the success of the business as you are.

Leaders are excited about their businesses, they keep goals in mind at all times, they are always learning and accessing feedback, and they teach others how to emulate their success.

  1. People don’t follow up and follow through. Have you ever been so anxious to start something new that you did a quick read of a “how-to” book, then forged full-force ahead into unchartered territory. How did it turn out? Maybe like trying to take an exam with Cliffs Notes. It works for some, but it does nothing for retaining material long-term.

When you’ve dabbled into the how’s and why’s of staring a home-based business, keep in mind that you’ve might have years of secondary education ahead of you in terms of continued attendance at industry workshops, professional training at seminars, and hands-on tutelage. Keep your eyes and ears open, and ready to learn, and constantly put into practice new skills that are available to you.

  1. People focus on selling, not marketing. When you’re trying to build a successful home-based or network marketing company, don’t get too caught up in the sales. Yes, you need to make sure you turn a profit, but no one likes to be sold to. Instead of trying to pass your products off on anyone around you who dares to come within three feet, make marketing to your target niche your main focus.

Build an opt-in list of people who are truly interested in what you have to offer, and work on establishing a relationship with these people, who will become loyal customers after you’ve proven they can trust you to be of value and integrity.

There you have it. The Top 6 Reasons Why 95% of Home-Based and Network Marketing Business Fail. I have high hopes that you’ll be one of the 5%, and I am excited to work with you to help you enjoy more freedom, peace, and joy.

 

Share and Enjoy