SMALL BUSINESS IDEAS: STATS ON THE MOST TRIED AND FAILED SMALL BUSINESSES AND THE TOP 8 STRATEGIES ON HOW TO SUCCEED IN YOUR SMALL BUSINESS IDEA OF 2014!
It is a sad reality that only 40% of small businesses are profitable. In fact, 30% always lose money and just 30% break even. With one in five businesses failing within the first year, just 37% set to make it after 4 years, half failing in five years’ time, and just 9% of small businesses thriving beyond the ten year mark, small business owners need to be armed with the knowledge of how to ensure their company is noticed.
What small business ideas should you avoid if you are concerned about beginning a profitable small business:
Independent Restaurants are a high risk option prone to failure. The owners often know their product and are passionate about it, but the consumer may not share that ideal. Likewise, the owner may not be business savvy for being focused on their product. Up to sixty percent of independent restaurants fail and over 7000 of these businesses have not survived the recession.
Retail stores struggle due to heavy competition in the marketplace. The success or failure of these businesses hinge on a business owner’s ability to effective market the company. High traffic areas are great for traffic but are expensive for cash strapped small business owners that have put forth a pricey initial investment. Up to 80 percent of these businesses fail in the first 5 years, under poor management, inadequate marketing campaigns, and tough competition.
Direct sales companies need owners with experience, vision, and commitment to stay the course for the long haul. Online companies like Mary Kay, Pampered Chef and Amway offer easy start up, but some business owners don’t realize their work begins when their business opens and is constantly changing. Failure occurs when owners are not properly trained in how to run or market their companies, which in turn leads to a loss of motivation. Forty percent of direct salesmen and saleswomen put just 5 hours a week into their companies. Only 10 percent put in over 30 hours per week. A startling 99% of direct sale business reps suffer financial loss and just 20 percent of products are purchased through a direct sale representative’s business.
The first step for small business ideas is to plan your inventory and set your company’s goals. These goals may change, but you need a starting point. Next, keeping with that train of thought, start small in the beginning, keep your strategy simply focused and allow customers to come to you. Thirdly, remember the owner needs to become an expert in their industry and know the marketplace. Marketing your company and maintaining quality merchandise and listening to customers’ feedback helps to ensure the public remains interested in your message.
There is a sense of reward that comes from opening your own small business, but you must be prepared to stay the course, put forth the effort to market your company effectively and ride the highs and lows to be successful. Success is proportionate to the effort you put forth to ensure your company’s success.
TAKE AWAY & ADVICE
So the take away from this whole blog post is to follow any of these strategies, and stick with it, as well as become a bad ass problem solver and you’ll be well on your way to generating more leads and even a nice six figure income from your business website or blog.
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