Why Most People Fail In Business...

by Joseph Demasi

The fact is that 90-95% of businesses in general will fail in their first 24 months. That is a staggering number considering that many people aspire to control their own financial future and view business ownership as one way to get there- the others being winning the lottery or inheriting a fortune from a distant relative!

But why is it that the odds are so stacked against the average person? There are a few key factors that I have seen that contribute to the non-success of the home business entrepreneur. I use Home Business as a model due to the usual low start up and easy of entry. Which I feel contributes to the high failure rate. Let's face it if the cost to start up a home business were similar to Franchises - see my article on this blog entitled "Truth About Franchising", 95% of people looking now would not be candidates for a business.

There are a few key reasons people find little success in the Home Business they choose:

1. Most people don't know how to run a business. Most people are employees, that is what they do now. They are working for someone else. They are used to being told what to do and when to do it. Being in charge of their own entity is foreign to them.

2. They expect to be paid for activity- not performance- Most people are employees. They punch a clock and get paid. In most cases unless you are in sales, there is no performance based income plan. They show up, put the time in and get paid. Running a business is completely different- unless you produce results, ie. making a sale, sponsoring others- there is no income.

This is the biggest issue I run into in talking to people about business. A common complaint I hear is- "I have been in this thing for 2 months and haven't made anything." When asked what they have done, all they can tell me is they have listened to all the conference calls, studied the compensation plan gotten to know the product line and ordered products. People are concentrating on activity not on results. I liken this to someone that opens a store of some kind, his shelves are full, he knows everything about the products, he has studied business management. he is ready to make money- the only problem- He keeps the doors locked so no-one can get in to buy his products.

3. People Do Not Know How To Market: this is by far a death sentence for any business. You must know how to promote and market your business. Every successful business has 1 thing in common- they get people to their stores(online or offline) - the one with the most customers wins. If you are weak in this area you better get help. One thing I do with team is help them in this area with an intensive training program that allows them to develop their marketing skills.

4. People are expecting too much too soon: Unfortunately the internet is getting more and more hyped with over the top claims of instant wealth. There is no-one who just joins a business- with no experience online and makes $40,000 their first month. It just does not happen. If you are not willing to invest at least 90-120 days of work in a business then don't do it. Things do not happen immediately.

5. People Think It Will Be Easy: Unfortunately the online claims of easy money has perpetuated this myth. Let's get real. If it is so easy to make $100,000 a year online, why isn't everyone making 100K online? Are people earning that much money online? Yes and more!

The bottom line here is that you need to go into this with realistic expectations. If you are expecting to earn 6 figures within your first 30 days you will be very dissapointed. Go into this with your eyes wide opened and don't buy into the claims of easy money. I tell people right up front that are looking at my business- it will take time to get to your desired income and it all depends on how much time and effort you want to put in and the results that you can generate.