As a home-based business owner, this conversation is near and dear to me. I am an entrepreneur (like many of my followers and Tribe). I love the challenge of trying to grow something from nothing and build it into a successful enterprise. But it is not easy and most people will, sadly, fail to make it work.
Whether you have a home-based business or a brick-and-mortar one, it doesn’t really matter. Owning your own business is really hard work. It will test your mettle and push you to new limits. It can be the highest of highs and the lowest of lows. Often on the same day! The roller coaster ride that comes with owning a business is simply a reality of what you signed up for when you opened up your shop.
So grab your doggie bags if you’re feeling queasy and pull up your big-boy (or big girl) pants and make sure it’s not your business that is next to fail.
Here are 4 reasons that many do and what you can do to make sure it doesn’t happen to you.
4 Reasons for Business Failure
1. They’re not comfortable with being uncomfortable.
In many cases, the work that is required is actually quite simple. But don’t confuse simple with easy. Running a business is anything but easy! Turning your dream into a reality will be uncomfortable in many different ways. But the #1 way will always be mental. We don’t like to feel unsafe, unsure, or uncomfortable. But you will. It’s going to happen. Failing to understand this is a big reason that many businesses fail. So you must ask yourself: “I am willing to learn to be comfortable with being uncomfortable?”
2. They’re not coachable.
Of course, everyone says that they are. “I’ll do whatever it takes!” Then their mentor says, “Great! Now go out and talk to people and let them know that you’re in business and ready to help.” What?! You mean I have to actually talk to people and they won’t just break down my door and throw their money at me?? All of a sudden, this eager new business owner is uncomfortable (see #1) and unwilling to do the work required to win. This happens over and over again. Being coachable means that you’re actually willing to let someone who has been there before (and has been successful already) guide you and help you to be successful. It means you’ll have to trust them and then do what they say. That’s the essence of a coachable person. If you’re not ready for that, you’ll likely not make it in whatever business you began. Ask yourself: “I am really coachable?”
3. They treat it like a hobby.
Whether you’re opening a new business as a florist or a financial advisor, you have to learn to be a pro. There is an enormous difference between the focus of a professional and someone who treats their business like a hobby. One is organized, has a plan and executes it. They are coachable and comfortable with being uncomfortable. The hobby business owner simply isn’t. She operates her day thinking, “I can do whatever I want with my day. If I don’t feel like doing the work, that’s okay, because I’m the boss.” Umm..no. That’s not how this works. No matter what your business is, this principle holds true: you get paid in proportion to how you serve. Want to make more money? Serve more people. Treat it like a professional and not a hobby. Ask yourself: “I am treating my business like a professional or as a hobby?”
4. They don’t really want it.
This is a hard truth. But that’s what it is. People open new businesses every day and 8 out of 10 fail. Why? For all of the reasons we’ve just listed (and more). Many times, however, it boils down to this: They SAY they want it, but their ACTIONS prove otherwise. An unmotivated person who is not crystal clear on their bigger purpose (or WHY) will never make it. They just won’t. No matter how hard you may try to encourage or inspire them, if it doesn’t come from deep within them, it won’t matter in the end. Ask yourself: “Do I really want to do this business?”
Question: If you’re a business owner, what other reasons do you find that businesses fail? You can leave a comment by clicking here.
Looking for a great book for growing your home-based business? Here’s a great one (she has a potty mouth, but the advice is worth the read): Get Over Your Damn Self, by Romi Neustadt.