Positively Parenting

By Sally Anders

Being your own boss has always been part of the American dream. That dream is as strong today as ever. Yet, statistics say that over 90% of home-based businesses fail. Why?

If you do some research, you will be told that the failure rate is due to under capitalization—not enough money to support you until you get the business up and running. I respectfully disagree.

With today's technology, starting many home-based businesses has never been more affordable. Anyone with a great idea can start his or her own business. It no longer takes tens of thousands of dollars to start a store. So why do these businesses fail?

Lack of research. People start businesses selling something they value without first checking to see if others find it equally as compelling—AND are willing to part with their hard-earned cash for it. Do your homework. Find out who your competition is and where your product or service fits into the marketplace.

Know your success factors. What will give you an advantage in your chosen business? Including your life experience, background, education and work history. I grew up in a big dysfunctional family with five rowdy older brothers and a mother who was married seven times. I am comfortable confronting and calming out-of-control men and crazy ladies. That's a success factor in my business.

Know your fears and limitations. What are some of the things that you will avoid doing in your business? For example, Tad loved selling his hand-tooled leather goods. But he hated keeping the books. Bookkeeping is something all business owners must do. He eventually bartered leather goods for bookkeeping!

Many people are terrified of sales, yet they start businesses believing that their products will sell themselves. This is more rare than the overnight success! If you are in business, you are in sales. Analyze your fears and those things you hate to do. Make certain that the joy of being your own boss is greater than the agony of doing those necessary business chores. Find creative ways to delegate them.

Define your unique factor. Why would people want to buy from you instead of your competition? Tanisha understands her customers' industry and gets back to them within five minutes. That's certainly unique in the tech support world. What's unique about you, your product or service? Tip: lowest price is not as important to most clients as real value. Don't try to be McBusiness unless you're ready to move a lot of product!

The failure rate of 1-person businesses is so high because people don't take the time to get to know the business they are in and the person (you) that they are in business with. They under value their success factors and ignore their limitations and fears. No amount of capitalization can stand up to that for very long.

Sally Anders has been a speaker in her own 1-person business for over 20 years, and now conducts workshops across the country on how to design your own Dynamic Business Duo. She is a past-president of Wisconsin Women Entrepreneurs (Now the National Association of Women Business Owners—NAWBO) where she worked with many one-person businesses, and partnered with the SBA and the Small Business Development Center at the University of Wisconsin, Madison to support women owned businesses. She is also a past-president of the American Society for Training and Development, SCW Chapter, and the National Speakers Association of Wisconsin. Reach her at: sally@DynamicBusinessDuos.com.