What do most people lack, becoming the number one reason many home-based businesses fail? Customers.
My rule number one? Never buy leads, and only buy customers.
This is only one of five topics discussed here so that your home-based business can achieve optimal success.
First, I would like to list the top five reasons most home-based businesses fail:
1. Lack of a business plan.
Just because it is a home-based business does not mean you do not need a business plan. You should be taking your home-based business just as seriously as if you were heading into any other type of business, so you need to make sure that the business plan you have is sound and that it has already worked for someone else who has used it.
2. Lack of motivation.
It is easy to become distracted. A home business should be run in the same manner as an office-based business. You need to motivate yourself to go to work in the morning and maintain that motivation during the course of the day in order to succeed. Discipline is a must. I have witnessed many smart people who are totally capable of being successful in their own home-based business, but failed because they didn’t have the discipline and motivation to answer to themselves. Some personalities require direction and management from others in order to be successful, so it is important to know if you properly motivated before starting your own home-based business.
3. Lack of space or proper environment.
If you are fortunate and your home-based business is successful, you may need to expand, so it is important while setting up a home business environment to anticipate growth. Not all businesses can realistically succeed in a home-based location because they need room for equipment, work space, storage, inventory, and employees, so it is important to determine if it is simply too difficult to run your business from your home. Many people learn the hard way by not being realistic upfront.
4. Ignoring a budget.
Too many home-based business owners justify spending money on all sorts of equipment, advertising, leads, and promotional tools because they are not paying overhead. This can result in dangerous overspending which will strip your business of capital needed to succeed and thrive. It is important to spend money wisely on only what is necessary to see growth and success, and not get caught up in unnecessary spending.
5. Lack of customers.
This is quite obvious, of course. Without customers business purchasing your products or services, you have no home business. This is the number one reason many home businesses fail because this is what most people lack when starting a business. Of course, there are companies that offer leads or you can go to a third-party source to purchase them, but if you talk to people who have used leads, they are usually a far cry from a constant stream of actual buying customers who could be supplying your home-based business with what it takes to thrive, grow, and become successful: sales.
So, what is a home-based business owner to do to avoid these pitfalls?
1. First, align yourself with a company that will provide you with a steady stream of buying customers to whom you have permanent rights, instead of mere leads.
With customers who are already purchasing being continually generated by the company itself, success will be attained and will continually grow and thrive because you will have all the customers you will ever need. With this, the front-end work of your business is already achieved. However, I know of only one company that does this.
2. Next, make sure this company is debt-free, reputable, and has a proven business model.
This company should have no start-up costs, no hidden fees, and be free to join. You want to avoid a business that starts strong and disappoints later, and instead opt for one that provides ongoing residual income for life. Talk to someone who is already working this business and see how it has worked for him or her.
3. Then, make sure you have the proper environment to work your business from home.
Align yourself with a company that will simply require an internet connection and a phone, and will allow you to be mobile, so you can take your home-based business anywhere you want to go. This company should do all of the back-end work for you as well by supplying you with your own free website and an easy to use back office on your laptop. They should be shipping the product to each customer, and supplying them with catalogs, e-mail alerts, monthly magazines and catalogs, and toll-free telephone customer support, all at no cost to you or the customer. Align yourself with a company that is willing to do all of this heavy lifting for you at no charge that normally weighs others down in their home-based businesses.
4. Next, stick to a budget by duplicating what someone else has already done to become successful in this business.
Resist temptation to reinvent the wheel which could result in needless spending. A great company has affiliates who have already figured out how to bring your business to the next level without spending needlessly, so just follow their lead.
5. Finally, make sure you are motivated to be in business for yourself in a home-based business.