Perhaps it is not surprising that many small home-based businesses fail for the very same reasons. If you simply browse through five of the top 10 reasons why many small businesses fail, you’ll see that it all boils down to a lack of knowing what to do and when to do it. It has been suggested by many successful entrepreneurs that a good education can overcome each and every one of these ‘failures.’
Unfortunately, many budding entrepreneurs simply don’t have the financial resources to take the college courses they need to excel in their respective fields. Even before looking at these potential business failures, it’s critical to understand just how important an education is. Can’t afford university? Why not look at some amazing scholarships like the fun-filled Stuck at Prom that offers awards for couples and singles alike. Don’t miss out on a business opportunity simply because you step in unprepared. Get that degree!
Here are the top five reasons why many home-based businesses fail.
1. Inability to Overcome Lost Revenue
Even a few courses in business administration should help new home-based entrepreneurs avoid this pitfall. It pays to understand that companies large and small have problems overcoming losses, but it’s handling lost revenue that counts. A few courses in business economics and business admin should help prepare you for life in the real world of business.
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2. Growing Faster Than You Can Handle
Quite often, a home-based business takes off like a snowball careening down a steep slope. Before you know it, business is so good that you just can’t handle it. This equates to a huge loss of clientele and if you aren’t yet ready to take on new employees, it could lead to your business’ ultimate demise.
3. Poor Planning
This brings us to the next big reason why so many home-based businesses fail. It’s all about having a solid business plan and sticking to it. Yes, you may need to revise it from time to time, but even then, stick to your plan. That business plan enables you to work your way through all the trials and tribulations you will face as a startup. A plan helps you stay focused on the long-term while working out those kinks in the road.
4. Inadequate Marketing Strategies
Then there is marketing to consider. One thing which many people don’t really understand is that there is a huge difference between marketing and advertising. A few business admin courses will help you clearly define what marketing is, how to reach your audience and finally, how best to promote your product/s.
5. Lack of Operating Capital
Once again, business admin to the rescue! Many home-based businesses simply lack the financial wherewithal to make a go of it. There may be a need for what you have to offer. Unfortunately, you don’t have the funding to produce the kinds of orders you are taking in and you can’t afford to hire more workers to help you fill the gap.
You can easily see how a solid background in business administration could help you avoid those pitfalls. Your ideas are great and your marketing strategies even better, but how do you put it all together to form a business with staying power?
Key Takeaway – Never underestimate the advantages of getting a solid background in business administration. Textbook solutions work together with real-life problems to give you the ammunition you need to run a successful business from home.