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Thursday, December 10, 2009

Why Some Home-Based Businesses Fail

This is a very interesting topic, that can easily fill volumes. You might think that I don't want to cover a topic like this because I promote Home Based Businesses. In truth, it is very important before starting your own business to know all the pitfalls up front, this way, you can work to avoid many of the mistakes others have already made. In the next several nights we are going to cover some reasons why home based businesses may fail and what to do to try to avoid failure.

Having your own business, home based or otherwise, is fun, exciting, challenging, and many times, very stressful. There is a lot of work in the beginning, (no candy-coating here), but over time, once you have built customer goodwill and trust, you will find the business begins to take on a life of its own. We have covered several points already regarding advertising, building relationships, building trust and products. Tonight we are going to briefly cover some reasons why new home based businesses (or on-line businesses) may fail.

One of my favorite quotes is "There is no such thing as trying, you either do it or your don't". I got this from my clarinet teacher when I was in High School and never forgot it. This quote holds true for home based businesses. You can't "try" to build your business. You can't start and then stop. Your first customers may love the unique product you sell, but if you quit, then they will be disappointed because they won't have access to that product any more. If you start up on another product, those same customers may be less willing to purchase for fear that if they really like what you have to offer, you may not offer it in the long-term. You need to go into business for the long term.

Granted there are occasions where you may need to cut your losses and run, but be very careful about what you choose to stop doing and why. Be sure to analyse the reasons for why you will stop offering a particular product or service before you stop. Customers are very distrustful with new product offerings because so many products are started and then quickly go away. You want your customers to know that you are in business for the long run. If the product or service you offer becomes not cost effective, you will need to stop that, but be sure to have an alternative product or solution to offer your customer base. If you become know as a business that is constantly starting and stopping products and services, nobody is going to take you seriously and then any business you start will be met with resistance.

Remember that anything you get into can fail, but if you do your research and check the industry you are interested in before getting involved, you are limiting some of your chances of failure. If you are interested in some home based business opportunitites, or second income opportunities, check out www.hawgwash.net. We have several types of businesses you can get involved with and are more than willing to talk with you to help you find what will work for you..

Tomorrow we are going to cover understanding the business you are going into and the need to generate value.

Until tomorrow...

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