You don’t want to be part of the small business failure statistics. Therefore, it would be wise for you to learn the main reasons for these failures, and avoid making the same mistakes. With the necessary knowledge, discipline and a sensible plan, your Internet home based business idea will be successful.

Business Failure Rate

Did you know that almost 8,000 start a home Internet business every day in the United States? Now, take a look at this other statistic: According to the U.S. Small Business Association, only 2/3 of all small business startups survive the first two years and less than half make it to four years. Are you going to be part of this last group?

Like all of us, you’re going to make mistakes with a home business start up. However, you can correct the minor ones, but the major ones could wipe out the idea of starting a small home business. Here you have some causes of these failures.

Reason for Business Failure

1. Choosing the wrong type of business – Nothing will cause you more frustration, waste of time and money than choosing a business you don’t like or one that requires skills you don’t have. Find a line of work you love and where you can excel using your own natural talents.

2. Lack of the necessary knowledge – You need to learn all you can about your product or service and what you need to set up your business. Do a research about your competition and things such as marketing, software, equipment, working capital needed and budgeting, health insurance etc.

3. Lack of Planning – You need at least a basic idea of the steps you need to follow to develop and succeed in your business. Good home business systems must be based on reliable and current information. If you have questions or need direction, read articles, books, or find a sponsor to help you with guidance.

4. Lack of Discipline – Discipline and consistency necessary are absolutely necessary to be successful in any business. This also includes being organized and willing to sacrifice. Organize your time and activities so you can perform them on a regular basis. Also be willing to sacrifice time, money, and effort, especially at the beginning. All of these will pay big dividends later on.

5. Lack of Patience – Provided you do your part, you need at least one year before your work from home business idea starts showing some decent signs of success. Read the success stories of highly successful people and see how many became successful in a few weeks or months.

6. Falling Prey to Home Based Business Scams – Most of these so called “opportunities” are either total scams, or you work hours upon hours with little or no results. You need to make an informed, not an emotional decision for your in home business idea. See our recommendations for truly Legitimate Home Based Businesses.

7. Lack of a Website – In today’s world, a web site is a must business tool, and a low-cost investment compared to its potential. It’s the best and easiest way to show your products and services and reach millions of customers worldwide 24/7 365 days a year. Most of your competition has a web site, and not having it is like trying to compete with a hot dog stand across from a McDonald’s.

How to Avoid Business Failure

Home businesses fail for all kinds of reasons, and there are always risks. However you can reduce them by continually seeking the necessary knowledge about your home business niche and putting the required effort to succeed. You must develop the discipline of continuous learning from someone more experienced than you. Also, the Internet has an infinite supply of FREE information available; use it to your advantage.

If you are a Property Manager, then one of the most important areas of management that you need to understand is risk management. The owners of the real property that your business is based on are probably counting on you to be knowledgeable in this vitally important area. Risk management that is not handled properly can lead to huge expenses and possibly unexpected law suits.

There are three techniques to handle risk… Avoid, Control, and Transfer. These techniques can be symbolized by A.C.T. Let’s discuss the first one.

Avoiding a risk is removing the potential for loss. If, for example, the tennis courts at an apartment complex are in need of repair, management could avoid the risk by removing the tennis courts and planting grass. This problem is solved.

Controlling risk is proactive and it’s preparing for problems ahead of time. So, in the case of the tennis courts, the tennis courts could be resurfaced with a softer surface and first aid kits could be placed close-by. This would certainly solve the problem and might be an acceptable solution.

Transferring risk is moving the risk to another company. Let’s say we contracted with an insurance company to cover any accidents that occurred on the tennis courts. This would transfer the risk to the insurance company.

Insurance companies can provide coverage for both tenants and property owners. Tenants can buy insurance to cover their own personal property. Owners of rental property can buy insurance to cover, fire, flooding, and liability. An owner can also purchase insurance to cover loss of rent in the event of an emergency which causes tenants to relocate while repairs are being made.

Of course, one can always use the ostrich “head-in-the-sand” technique of “retaining” risk and hope nothing will ever happen. But, it’s the Property Manager’s duty to help property owners identify risks. And, this is relatively easy to do. Just follow the advice of the great philosopher Yogi Berra… “You can observe a lot just by watching.”

Property Managers need to also assess the risk that their own business is being subjected to. Remember, you are an in-between-man… between the tenant and the property owner. Either one of these parties could file suit against you and/or your company. So, be sure you cover this risk.

The biggest challenge faced by companies in the pharmaceutical industry is to develop, test, and manufacture drugs under the strict regulations laid out by the FDA. This presents companies with very low margin in causing any variance in the way they manufacture products. With the competition growing fierce, many companies will find the time to develop and market a patent drug extremely short. It takes years of extensive research, analysis, and testing to develop a drug that is then approved by the FDA. By the time the drug is launched in the market it is most likely that competitors have already taken a head start in manufacturing the same medicine. Attaining regulatory compliance within this environment in itself is a difficult task that only few pharmaceutical companies are able to achieve. There are very clear risks involved in manufacturing drugs when the pharmaceutical companies are constantly under observation by the stringent U.S. government mandates. Because of this reason, many companies are utilizing risk management software to excel their businesses.

The first priority of any pharmaceutical company is to spend less time researching a new drug. Many departments are working independently of each other in conducting groundwork for the research. This presents the problem of isolated work silos that consist of critical information trapped within the manufacturing process. Risk management systems help employees collaborate in an integrated environment where processes are linked together. Having a web-based repository allows companies to maintain consolidated data in a structural format. This eliminates data redundancy which hampers analysis and causes miscommunication between the employees. The risk management system provides companies with a common platform for collaboration, which offers centralized control for storing SOPs, research work, and all other kinds of related information.

Since pharmaceutical companies deal in life sensitive business, the FDA has adopted a risk-based paradigm to monitor the pharmaceutical industry as a whole. Compliance is something companies must achieve in order to sustain their business. FDA regulations and Pharmaceutical Current Good Manufacturing Practices demand companies adhere to certain rules. The FDA has devised a risk prevention methodology that companies must follow to avoid risks. The steps in this framework begin with the identification of a hazard, nonconformity, or source of variability. A risk management system can provide analytical capabilities and a reporting console that help identify the risks that are faced by companies. Once risks are identified, they can be prioritized using FDA and industry standards. This helps pharmaceutical companies comprehend which risks are prone to hit the business before others as well as the implications of each risk on an individual basis.

Several years ago I was asked by Tony Robbins to give a 2 hour talk to his 90 sales people during their annual sales rally. As they were highly trained people selling Tony’s products and seminars, I remember asking myself, “What can I share with them, that he hasn’t already taught them?” I decided to share with them the difference between playing to win vs. playing not to lose.

So many people are doing exactly that–playing not to lose vs. playing to win during these changing times. In fact, if you feel the recession has hit you in anyway, I would be so bold as to say you may be playing not to lose and missing out on the amazing opportunities that come when we play to win. The ride is much more fun when we are playing to win!

Here is how to Play To Win vs. Playing Not To Lose:

You must redefine your definition of winning and losing. Many experts are saying we are not going through a recession, but rather we are emerging into a new era of how we do business and how we live our lives. That in my humble opinion is very good news! However it requires us to redefine the rules of success and the rules of failure. Peter Drucker said, “The best way to predict the future is to create it.” As more and more Americans become entrepreneurs, the rules for running your own small business are rapidly evolving. If you find your business not growing as it did earlier in the game, or you find you are burning out much faster, or you are not earning more income each year, then continue reading. . .

Are you avoiding fear or avoiding risk? If you answered yes, then you are playing not to lose rather than playing to win. Henry David Thoreau wisely said, “Most people live lives of quiet desperation and go to the grave with the song still in them.” It is human nature to feel safe in a certain comfort zone. We value life being predictable to a large degree. We value sameness, structure, stability and security. Too much of these qualities, however, and our lives become stagnant. By attempting to maintain our comfort zone to feel safe, we actually begin shrinking it. The same applies in business. Unless we step out of our comfort zone by taking risks, learning new things, trying new adventures, we will stagnate. Avoiding fear in our lives and business begins to shrink our comfort zone. Until we decide to stretch ourselves, our comfort zone will continue to shrink with time, resulting in failure and unhappiness in our lives. It is healthy and natural to coast at times. It is important to remember, however, when we coast we are always going downhill! Here is a hint: If we are not playing full out, then we are not playing to win, but rather playing not to lose. This week, ask yourself, “What risks am I avoiding in my life or business?”

Is Your Business Thriving or Merely Surviving These Times? I hear so many entrepreneurs say, “I just want to get through this economic time.” Their thoughts are about surviving, their goal is not about thriving. Surviving is playing not to lose; setting the intention of thriving even now is playing to win. The difference between surviving this year or thriving is directly linked to whether we choose to play not to lose or play to win!