When you have your own home based business you are your own boss, you can work when you want and you can make some extra money on the side or even earn a full time income from it. The internet has made it possible for many people to start a work from home business as the set up costs are considerably less than a conventional offline business. An online business can reach out to customers all around world, 24 hours a day, 7 days a week.
But more than 90% of home based businesses fail in first 6 months. Let’s take a look at 5 reasons why this happens.
1. Choosing The Wrong Niche.
The niche, or industry marketplace, that you choose for your home based business is important. If you don’t choose the right niche, it can mean the difference between success and failure. You need to look at the what you are good at, what interests you and what will keep you motivated.
2. Not Knowing If There Is A Market For Your Products.
You may think that you have the best product or service but if there are not enough people around to buy it then you’re not going to succeed. You can, of course, to put in the hard work required to create a market but is often a lot easier to serve an established market than to create one from scratch.
3. Being The Same As Your Competition.
If you do supply to an existing market, you have to know why somebody should buy from your home based business, rather than from your competitors. The internet allows you to have a website design that can compete on a level playing field with larger organisations. If you just supply exactly the same as everybody else, it can be difficult to secure a place in the market. But if you create a new and interesting twist on an existing product or service it will help you to get the attention of potential customers.
4. You Don’t Know How To Find Customers.
If you’ve got a great service or product that delivers something different to good sized target audience you have to let them know that it is available. You need to know how to market your business, drive traffic to your website, generate leads and actually get customers to buy from you with a proven sales process.
5. Treating It Like A Hobby.
Managing a home based business requires time, work and resources. If you treat it like a hobby, that is exactly what it will be. You have to be prepare to work hard to achieve your objectives and appreciate that there is no such thing as a ‘get rich quick’ business. Sometimes things don’t work out right on the first try. You have to be willing to try time and again until finally you do succeed.