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Business Opportunities: Success and Failure Statistics as
Posted by: admin




Business Opportunities: Success and Failure Statistics as
Well as Possible Prevention

By Vishal P. Rao

Let's face it, business opportunities are a rather quick,
easy way to start a business. They are usually "turnkey"
operations, where someone that buys into a program either
online or offline is provided with all the necessary
elements of immediately being in business for themselves.
Business opportunity programs can also be cost effective, as
many abound, and finding o要e within a restricted budget is
rather easy.

The biggest challenges faced when choosing a business
opportunity program are the following:

1. Choosing o要e that suits an entrepreneur's needs and
skills as well as interests.
2. Choosing o要e that pays enough in commissions o要 goods or
services that makes it lucrative enough to turn a healthy
profit.
3. Choosing o要e that is wanted and needed by
customers/clients.
4. Choosing o要e that does not exist in an already glutted
market. This would lead to too many choices of other
providers and a rather limited market for the business
owner.

The sad facts are that because of the easy start up, and the
rather quick "fix" that business opportunities present to
potential entrepreneurs, business opportunity members can
quickly enter a business and just as quickly leave it.
Turnover can be quite a problem. Since little initial
investment is required, many members "jump into" a business
opportunity at whim, and quickly find that running a
business is a whole heck of a lot of work!

The reason for the failure rate is also attributable to
certain outlooks and requirements that many business
opportunity "joiners" fail to consider when joining:

1. Is the business opportunity nothing more than empty
promises, the old "too good to be true" adage?
Unfortunately, these types of offerings run rampant both
online and offline.
2. Is the business opportunity catering to a dying market?
Markets can fluctuate, so due diligence is needed. Research
into markets, just as with any other business is paramount.
3. Is the business opportunity solvent? Talk to other
members, and do research. Become aware of any problems in
payments/revenues before you join.
4. Is the business opportunity flexible? Does the Biz Op
restrict members in their advertising methods, or are they
inflexible and "distant" in their approach to members'
concerns/problems.
5. Is the business opportunity viable? Viability should be
financial as well as personal. In other words, does the Biz
Op have a great financial track record and does it meet the
needs of "you" personally, as far as personal satisfaction
and approaches to sales and marketing?
6. Is the business opportunity working within the confines
of federal, state and local laws? Depending upon where a
member lives, these laws can vary widely!

The real statistics o要 failures of small businesses, many of
which now are business opportunities and franchises, are
well documented by the United States Small Business
Administration: www.sbaonline.sba.gov/. Business statistics
provided by the United States Department of Labor, report
that in 1994, the number of businesses that failed that year
were divided into the following categories:

* Bankruptcies (a 15.4% increase from 1993).
* Failures (a 17% increase from 1993).
* Terminations (.3% increase from 1993).

The Small Business Administration attributes these failures
and the evolving higher percentages to the fact that there
are now MORE small businesses in the United States overall,
with a 49% increase in numbers since 1982.

The Small Business Administration also states specifically
that statistically, o要ly o要e in seven can be considered a
true "failure", leaving unpaid obligations in their wakes.
Others simply sell or shut their doors for a variety of
other reasons.

Since most business opportunities, at least initially, open
with less than 100 employees (many are simply the owner, as
sole owner and executor of all business "chores"), then most
Biz Ops are indeed "small businesses" and as such all the
pertinent failure statistics can be applied to them. What is
really surprising and rather "staggering" is the fact that
most business failures are not due to outside forces, but
those that the business owner has complete control over!
These issues included lack of marketing know-how, lack of
record keeping, lack of management competence, lack of
financial management, and other business basics such as
controlling employees and the inability to seek outside
assistance and advice!

The wise business owner, whether or not involved in a
business opportunity, will seek to learn and implement
proper procedures, and investigate proper methods of
operation throughout the life of a business.

If this is done, a Biz Op owner, or any small business
owner, has less of a chance of becoming the "latest failure
statistic"!

Vishal P. Rao. All rights reserved.

----------------------------------------------------------
Vishal P. Rao is the owner of href="http://www.home-based-business-opportunities.com">
Home Based Business Opportunities - o要e of Internet's
leading website dedicated to starting, managing and
marketing a home based business.
GetPaid2.com

 
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