Top Reasons for Online Business Failure

Starting an online business does not give you an express ticket of being successful in this field of entrepreneurship. In fact, launching your business on the online platform might mean even working harder unlike in offline works. While chances are that your internet based business can still fall, you should not condemn yourself as being a bad owner. This is due to the simple fact that not everyone who starts his work from home business is destined to be successful. In case it turns out against your expectations, you need to rethink about your ideas and the various strategies and techniques you are using to man it. Nevertheless, there are various circumstances in which your online business can be very far away from being successful such as:

Wrong business tools and lack of determination

To keep things simple and clear, employing the wrong business tools including technology and techniques might mean a direct failure of your business. This also factors in advertising and marketing tools as well. There are some people that simply launch their internet businesses without having an idea of exactly what they are getting themselves into. As such, they lack the much needed drive, focus and motivation that can lead to the road of success. Having the determination to succeed in business is important as it gives you the will power to face and conquer the many obstacles that come along the way.

Wrong choice of a business idea

Your choice of home based business idea has a lot to do when it comes to the success of your business. Most online entrepreneurs have no confidence in their selected online opportunity and this really narrows their chances of being successful. Regardless of which business idea you decide to exploit, the most important thing is that you are optimistic in what you are doing and believe in the beauty of your dreams. In fact, there is no any online business model that can be regarded to be successful but it all depends on how passionate is the owner in seeing his or her business flourish and become more competitive.

Lastly, most online businesses fail as they do not spare sometime to research and get more information regarding their industry. Even as you research, it is essential that you are able to differentiate between facts and opinions regarding your business and only applying good and helpful information while ignoring bad information that can jeopardize your chances of success.

Successful Business – Top Reasons

1) Direction.

Every startup needs a leader with a vision. During the difficult times, the CEO needs a clear idea of the end mission and how the company needs to get there. A good business leader keeps the long-term in mind, while dealing with the immediate needs of a new company.

2) Speed to market.

You can’t be second when it comes to startups. Especially with the rate of technology development, the faster a startup can produce its service or product, the better chance it has in delivering to customers. Young businesses have to compete with established industries. One of the reasons businesses succeed is that they reach consumers first.

3) Financial savvy.

Successful startups know how to work within a budget. Managing finances and keeping a young company out of debt it can’t repay is key to becoming successful. Companies just starting out need to do more with less.

4) Well-Connected.

Just like early career builders, young startup companies can gain a leg up by knowing a few well-connected individuals. These companies use their social network for their first clients, investors, and mentors. As the old adage goes, it’s not what you know – it’s who you know.

5) Dedication.

Startups need leaders who are willing to work hard and stick to their goals. This leadership inspires others to commit to a strict work-ethic, aligned with the company’s mission. All employees must be committed and dedicated to the goal.

6) Perseverance.

Even when times get tough and the road to success offers bumps and blockages, startups need to persevere to achieve success. The majority of startups bail when money is tight or disagreements arise between founders. Successful businesses stick it out in turbulent waters and remember their end goal during difficult times.

7) Quick to Adapt.

Successful startups are comfortable with change. Leaders who know how to make smart decisions without a clear roadmap can take advantage of opportunities that more cautious companies can miss.

8) Knowing How to Attract Investors.

Money talks in the business world. Without the startup funds, companies can never get up off their feet. Smart business leaders know how to generate capital to give their million-dollar ideas a shot.

9) Confidence.

Startups need unwavering commitment to their mission and goals. Without the confidence that the company will succeed, the startup will dissolve when facing initial obstacles.

10) Efficient Time Managers.

There’s no down time when it comes to startups. If the leaders of a company are not putting in time around the clock, success is unlikely.

11) Execution.

Everyone can have a million-dollar idea. It takes moxie and strategy to put an idea into action. Knowing how to execute sets apart successful businesses from the failures.

10 Good Reasons Why Small Enterprises (Small Businesses) Fail

You’ll agree with me that there are so many small businesses which have contributed a lot to the growth of economy. They have created employment opportunities for many families although some remain to be small throughout their operational life.

It is obvious that those who are starting new ventures have objectives to achieve. And to mention each business has got its own objectives to achieve such as maximization of profits and sales, minimize costs, maintain a certain level of production and labor force etc.

Failing of a business opportunity is what an entrepreneur won’t want to happen. Inasmuch as we agree with the fact that there are firms which have succeeded, we should also accept the fact that a good number of them have failed even before two years lapse after they commence business.

If aspiring entrepreneurs addressed the reasons why small businesses fail, then they will not fall to be victims of the same causes of failure. This is because they’ll be in a position to identify these causes and fix them before it’s too late.

Now you may be asking yourself as to why some businesses remain to be small throughout their operational life despite some of them making profits or are capable of growing.

4 Reasons Why Small Business Remain to be Small

1.) The owners of these businesses prefer not to expand their businesses. Some sole proprietors do not want to be bothered with the challenges of managing a big business. They don’t want to employ people to assist them in running their businesses but instead they prefer to be assisted by their family members.

2.) The nature of the product/service the business is involved in doesn’t allow expansion. There are people offering products/services which make it difficult for their business to grow.

3.) Lack of capital for expansion. There are small businesses which are viable and have the potential of growing but they lack enough capital. Such businesses have the challenge of securing funds from financial institutions. Lack of capital plays a negative role in hindering the growth of small businesses.

4.) Very low demand. If the business has a very low demand for its product or service, then at the end of the fiscal financial year/trading period the business won’t realize profits, and if it does, it’s very low, therefore the chances of it expanding are very minimal. Just to mention, realization of inadequate profits as a result of very low demand hinders the growth of small businesses.

However, there must be a starting point and as such, every business starts as a small entity and it gradually grows to a medium entity and eventually it becomes a big business entity which is either a private limited company or a public limited company. Note that a partnership business can also grow to become a big business.

Reasons Why Small Businesses Fail

1.) Wrong Reasons For Commencing Business: People who start a business for wrong reasons haven’t succeeded. Just because another person is making high profits in a certain line of business doesn’t mean that you will also make the same amounts of profits as him/her if you start the same business.

2.) Poor Business Management: When there is poor management of the business it becomes difficult for such a business to succeed in its operations. Finance, marketing, purchasing and selling, planning, hiring and managing employees is what most new business owners fail to execute effectively thus making their small businesses to fail.

3.) Lack of Commitment: Starting a business requires someone who is committed in ensuring that it succeeds. Neglecting the business will cause the business to fail. Many small businesses have failed because the owners didn’t take their time in monitoring performance and in marketing them. Some business owners leave their businesses to be managed on their behalf by incompetent people who lack book keeping knowledge and the knowledge of managing a business.

4.) Lack of Finances: Small businesses have failed because of lack of adequate finances. Some of the owners underestimated the amount of capital required and as a result of this underestimation some ended up running out of operating capital thus ending the operation of their businesses.

There are those who have no reserves which has led them not to be able to take care of loses and disasters when they occur thus making them to quit business.

5.) Over-Expansion of the Business: This has led to failure of many small businesses. This happens when there is borrowing of too much money beyond what the business requires so as to expand the business. Moving to markets that are not profitable is also over expansion of the small businesses.

An ideal expansion is the one that is driven by customers due to their high demand for the products and services which leads to high sales thus the business experiences good cash flow.

6.) Location: The place where the business is located is critical in determining its success. Small businesses have failed because of them being located in areas that are not ideal for business. They should be located in areas that are accessible, populated with people and has demand for their products and services.

7.) Personal Use of Business Money: This is the biggest challenge facing many small business owners. They withdraw money meant to operate their businesses to meet their personal wants and needs. If they continue to withdraw money from their businesses without returning it, their businesses will eventually run out of finances therefore forcing them to end the operations of their businesses.

8.) Lack of Delegation: Small enterprises have failed due to owners not delegating some of the duties to their employees. They think that if they delegate them, then their employees will not perform these duties as they would personally perform them. When such owners fall sick or are away from their businesses, then the operations of some tasks will be paralyzed till they resume to work.

9.) Not Diversifying: Small enterprises which have only one product/service to offer are prone to fail easily compared to those that have a variety of products/services.

10.) Procrastination and Poor Time Management: Postponements of tasks which the small business owners feel to be unpleasant to perform has made the small businesses to fail. An example of such tasks include following debtors to pay their debts (debt collection).

Time management remains to be a challenge for many people who own small businesses. If important tasks like delivering products to customers, purchasing stock etc are not handled in the appropriate time, then the business will lose its customers.

The above are not all the reasons why small businesses fail, there are more reasons.

Small Business Opportunity: The Top 7 Reasons to Start a Painting Business

House painting is a skill that most people can pick up quite easily. It is one of those rare home based business opportunities that actually work and it is very possible to make $30- $50 an hour without much effort.

Here are the top 7 reasons why anyone with basic painting skills should consider starting a painting business of their own.

1. Residential and Commercial Painting is a 22.5 Billion Dollar a Year Industry!

Every day homeowners across the country (and around the world) spend millions of dollars to have a living room, bedroom, kitchen etc painted. This is an industry that indeed has an unlimited amount of work available.

There is far more work then there are painters. Listed in the top 10 businesses in 2006 and predicted to grow into the foreseeable feature, there has never been a better time to start a painting business then right now.

2. Basic Painting Skills Are Easy to Learn.

It doesn’t take much time at all to develop basic painting skills. Just about anyone can do it. Most painters who learn through “On the job training” pick it up in just a few weeks. All it takes is a little practice.

3. Very Low Start-Up Costs

A painting business is one of the best businesses because it doesn’t require a lot of money to start. For under $250.00 (depending on where you live) you can get a painting business up and running and earning money.

With start up costs this low it doesn’t take long to become profitable and if you target small high paying jobs your overhead costs are next to nothing.

4. No Expensive Advertising Needed

Unlike most other business, a painting business doesn’t require a huge monthly advertising budget. In fact it is completely possible to build a profitable painting business without any traditional advertising at all.

Smart painting business owners spend time building relationships with people who “know people” that can refer them jobs.

5. Earn Professional Income Working Part Time Hours.

Many successful painting business owners earn $60,000 – $100,000 per year working less then 35 hours per week. Once you develop your skills and become proficient, it is not uncommon to make $300-$500 per day working just 4-6 hours.

It is possible to earn more in one day then most painting employees make working a 40 hour week. Every day painters sell their valuable skills to a boss for a measly $12-$15 when they could be earning top dollar running their own painting business.

6. Freedom, Lifestyle and Security.

The best thing a house painter can do to secure their future is to start a painting business of their own.

The potential to earn an above average income working part time hours is one of the biggest benefits of owning a successful painting business.

Many painters are making a great living running their own painting business. They drive nice vehicles, live in nice homes and have the time and money to do the things they love.

7. Outstanding Tax Benefits

Running a small painting business out of your home offers many outstanding advantages like high profit potential and low over head. Expenses like gas, tools and your vehicle may be write offs. (Be sure to check with your accountant) But the tax benefits of owning a small business are wonderful.

As you can see the sky is the limit for painters. Unlimited work and top pay draw a lot of people to the painting trade every year.

5 Reasons Why People Are Afraid Of SEO

Why are people afraid of SEO?

In case you’re an entrepreneur or a small business owner you have likely heard from everyone that you should learn SEO (Search Engine Optimization) and prepare an online strategy for your business. After all, most people frequently search for products or services on the internet.

You are well aware of the fact that you require a website, and that it requires a little work for it to appear on the web search engines. Thus you invest some time and energy – possibly outsource the job – and built a website for your business. Possibly you utilize a pre-designed theme to get the site up and running.

Incidentally, in spite of your earnest attempts, the site isn’t sufficiently improved.

You comprehend that; however, you would not like to manage all that “SEO stuff.” From all that you heard, search engine optimization takes a lot to time and the techniques are too technical for you. You thought it (SEO) doesn’t ensure critical outcomes. So why bother with it?

A ton of business owner feels along these lines. They find out about how vital SEO is, yet at the same time delay to begin SEO themselves or hire an organization.

Here are some facts that make people scared of SEO-

1. There is no magic formula-

If you believe that SEO is some magic elixir for quick online profit and success, you’ll be sorely frustrated and disappointed. Search engine optimization is significant to your business’ productivity, yet it will require some serious time and energy before you’ll see an ROI (Return on Investment).

In business, each system and crusade must yield some profit i.e. some ROI. If there is something that won’t help in developing your business, you won’t do it. Since the ROI from SEO is slow in arriving, numerous people feel that SEO doesn’t have any importance and in this way, they stack it to lower priorities.

Those new to SEO will put a considerable amount of time and money into it and are regularly frustrated by the absence of results. This makes many business owners hesitant to start a SEO campaign and to stick it out for the long haul.

One should understand that the results will come in the long run if the strategy is planned and executed well. They just won’t come immediately. Search engine optimization is an important technique for one’s business and ought not to be overlooked. Be patient and search for logical strategies and processes, not magic.

2. It Takes Too Much Time

Those new to SEO imagine that this sort of online marketing strategy is a quite complex and the process includes many steps and parts. While there are a ton of components to consider while enhancing your site, they shouldn’t be altogether done at the same time.

Like points #1 above, those new to SEO are frequently hesitant to begin an expensive and tedious SEO strategy when it creates the impression that all the work and time invested is in vain. Once more, be patience.

There are several alternatives for busy business owners in handling SEO. The primary choice is to hand over all the SEO assignments and obligations to a digital marketing agency. When you essentially don’t have sufficient time to do it without anyone else’s help, obviously, you can appoint the whole procedure to a SEO organization. Along these lines, you can invest your time and energy into maintaining your business while the organization runs the online campaigns.

The other choice is to handle the SEO yourself. Try not to begin off by trying to do everything, except do it step by step. You’ll save money and learn more about SEO; however, you’ll have to invest a great deal of time all the while.

3. Search engine optimization is Too Technical.

Numerous business owners new to SEO have this thought SEO is a technical, complicated process that is done by a web designer or a “brilliant computer geek.” They feel under qualified to execute SEO or even endeavor to learn it.

Many components of SEO can be performed by anybody. You needn’t to have a computer diploma to perform SEO activities. A person with basic computer knowledge can easily perform some of these activities. Basic SEO is anything but difficult to learn and just takes a couple hours of learning. At the point when your organization is young and you’re new to SEO, it is best to just focus on executing a few basic key SEO components and strategies.

There are numerous technical parts to it, as well and many small businesses are concerned that digital marketing agencies will attempt to overwhelm them with a huge amount of digital terms and odd claims. Try not to let that stress you, simply clarify your concerns and ask plenty of queries, and a good agency will walk you through all aspects of the procedure.

4. Not getting enough customers online.

One of the broadly discussed parts of SEO is keywords. Keyword research and target audience is a very common strategy that is promptly started when you start up any campaign. In case you’re doing this all by yourself, you may immediately run into the tremendous number of relevant keywords and feel a bit overwhelmed with the potential outcomes. But how will you decide which keyword to focus on?

Finding out about keyword research can enable you to get an idea which words your site is as of now positioning for and which ones searchers are using to discover your site. You can also find keywords based on relevance, level of competition and volume of search.

The more that you analyze your website and discover patterns keywords, the easier and quicker it will be to identify keywords that will target the right audience that is looking to buy your product or services and thus converted from traffic to your clients.

5. The complexity of SEO.

You will be a little bit surprised if someone tells you that there are more than 200 factors that the Google analyze when ranking a website. How one can tackle all these factors?

This complexity of SEO is enough to frighten off business owners who would prefer not to waste the time and energy to manage everything. Or on the other hand, they may go the other way and start to focus on a single ranking factor. Some entrepreneurs or business owners are content with finding out about SEO and implementing a couple of fundamental SEO activities for their sites. This is a start; however, the full power and capability of SEO will never be completely realized.

Search engine optimization takes time, money and sincere efforts. The scares that SEO is excessively technical, complex, and gimmicky are common delusions among people new to SEO. The more you learn about SEO yourself, you’ll more comfortable and confident to do your own SEO or work closely with any digital marketing agency.

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