High Failure Rate For Home Based Businesses

High Failure Rate For Home Based Businesses

City view trail headThousands of people start home based businesses every day. Ninety-eight percent of them will fail. What are underlying reasons for the high failure rate for home based businesses? Despite dismal results, misleading advertising is still prevalent. Blatantly overblown income claims fuel skepticism. Unrealistic expectations turn to disappointment and lead to buyer's remorse. Without preparation and the proper mindset, the high failure rate for home based businesses will continue to persist.

New business builders in network marketing don't just buy products or services. What they REALLY buy is the dream of a better lifestyle. They want to work when and where they choose, they want to escape the rat race, and they are motivated by the high income potential offered by the industry.

Home officeFive Reasons Home Businesses Fail
Why such a high failure rate for home based businesses? Here are some reasons:

  • Lack of skills
  • Poor marketing
  • Insufficient funds
  • Lack of commitment
  • Lack of successful mentors

Develop New Skills
Home business newbies don't realize how much time, energy and hard work are needed to succeed. The decision to start a home business or join a network marketing company is a CAREER decision. You have to work on your business skills just like you do at a traditional 9-to-5 job.

Master yourself through self development. Devour books and audios that motivate, inspire and transform. Dive into mastering marketing and promotion. Develop or adopt a proven marketing system. Fund your business with high quality information products. Create your own products. Learn how to generate leads and convert them to satisfied customers. Apply what you learn with massive action.

UpsetPoor Marketing
Don't believe that you can build a business strictly by word of mouth. Without good marketing for your brand, products and services, you will fail. Learning how to promote your businesses effectively will not happen overnight. Combine effective online marketing with offline marketing and networking. Just like any career, you must become a student of marketing and constantly improve your skills. Start with a proven marketing system.

You Need Money To Run Your Business
Lack of capital is the #1 reason for the high failure rate for home based businesses. Most people start part-time, while working a job. You'll need basic tools for your business, like a website, email marketing service, domain names, web hosting, training courses and lead generation systems. Plus business cards, marketing tools like CD's, brochures, postcards, flyers, and other promotional materials.

How do top earners generate cashflow for business expenses? Remember, most visitors to your website already have a home business. But they are starving for good content on how to become profitable. Be sure to offer high quality information products at a great price. You must generate income even if your customers don't buy products from your network marketing company. Use 10 percent of your income (or more) to fund paid marketing campaigns. If you cannot generate enough income to cover the cost of your expenses, you will go broke fast.

Home Business Requires Commitment
Are you looking to get-rich-quick? Then home business is NOT for you. No matter what industry, all reputable businesses require long term commitment and goals. This is where personal development makes all the difference. Along your journey you may encounter self doubt and disappointment. You literally have to re-program yourself to succeed. Persistence, determination, organized planning, self confidence, resourcefulness, faith and massive action are required attributes for success. Build your credibility and expertise and you will attract customers almost effortlessly.

The top successful 2% have studied and applied new skills in effective marketing and sales. They are self-motivated. Personal development and mindset are top priorities. It takes years of persistence and focused action to become a successful self-employed business owner.

Model successful peopleModel Successful People
If you want to learn how to succeed in network marketing or any home business, model successful professionals. The list is too long to mention here. Start with Mike Dillard's free video series from Magnetic Sponsoring or Ann Sieg's free eBook The 7 Greatest Lies of Network Marketing. Get a feel for the industry. I can recommend several other outstanding professionals and training systems.

One of the benefits of joining training systems such as Magnetic Sponsoring is the community of like-minded individuals. A sense of belonging. Learning from the collective mastermind. You'll be amazed. Interact with others just like you who believe in their dream of a better life. Many are living their dream now. You will form lifelong friendships and partnerships.

No doubt the high failure rate for home based businesses will persist until prospects accept the reality that you have to WORK in order to achieve that dream lifestyle you deserve! Increase your believability by being honest with potential team members. Tell them what to expect and help them set attainable goals. Be available to help them through the process.

This business is 90 percent mindset and 10 percent execution. You have to believe in yourself or you don't have a chance. Avoid failure. Start with basic training now.

Cindy McMillan

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Cindy McMillan, Founder

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