Nobody starts a business hoping it will fail. Nationally, eight out of ten small businesses fail in the first five years. When it comes to home-based businesses, the statistics are worse: approximately 98% of home based businesses fail.

Reason #1: Lack of knowledge. Many people have great ideas for businesses, or are "sold" a package or franchise, without having the basic knowledge they need to establish and properly run a business, and then they fail because they did not anticipate the market, or their competition, or because they just didn't spend the time to learn what they needed to know before they started their business. The best initial investment is to spend time learning before you start. There are hundreds of great websites and internet newsletters available to help you learn.

Reason #2: Lack of focus. A common misconception for "newbies" is that if you own your own business, you don't have to work as hard or as much. There are, indeed many businesses, that, when established, do give you a great deal of freedom to play more, but when you are starting the business, until it is profitable (and I don't care what business you name) you must focus your attention like a laser, or the business will never succeed.

Reason #3: Lack of time. Working a full-time job, taking care of family, and taking care of yourself leaves little time to start a business. Unfortunately, most businesses fail because the owner wasn't able to spend the time he or she needed to be doing. You must set aside sufficient time in order to succeed.

Reason #4: Unwillingness to invest in their business. You've got to spend money to make money. This can be true for many of the "business in a box" ready-made internet businesses that are available. Yes, the website may be cheap to set up, but you have to spend the money you need to in order to get customers in the door. It doesn't mean you have to spend thousands of dollars, but it does mean you've got to spend what it takes.

Reason #5: Invest in the wrong things. Spending your money on the right things is just as important as spending the right amount. The best way is to find a mentor or a coach who is successful to help you weigh what is important to spend money on, and what you should not. Otherwise, you'll discover that you have spent a great deal of money on things that produce little or no profit.

Copyright (c) 2008 Mark Albertson