The Five Rules of Business Success

Copyright (c) 2008 Mark Albertson

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 are hundreds 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. Unfortunately, most businesses fail because the owner wasn't able to spend the time he or she needed to be doing. It is mandatory that you set aside enough time to make your business successful.

Reason #4: Insufficient investment of money in their business. You have to spend some money in order to make money. This can be true for many of the "business in a box" ready-made internet businesses that are available. Even though it may be very inexpensive to purchase a website, your major expense will be to get customers in your 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 on the right things is just as important as spending the right amount. The best way is to find a mentor or a coach who is successful to help you weigh what is important to spend money on, and what you should not. Otherwise, you'll discover that you have spent a great deal of money on things that produce little or no profit.