8 Top Reasons Why Small Businesses Fail and How to Overcome With the Right Mentor
According to the Small Business Administration (an agency of the US federal government) there are 8 precise reasons why most small businesses fail, but with the right mentoring system it's easy to make a success.
The 8 reasons are as follows: 1) Lack Of Experience Being a member of a successful mentoring system, you will already eliminate this reason completely.
As long as you follow the steps that are laid out for you within the member's area you'll have all the experience you need.
You get to learn from the mentor's mistakes and do only what he personally found to be effective.
Your personal mentor's wealth of experience will carry you through any issue with ease.
2) Personal Use of Business Funds This one is simple to get around.
Just don't spend all the money you make in your business on new cars, toys, vacations or other personal stuff.
I'm not an accountant by any means, but one thing I do know is that you've got to pay your bills.
Please do pay yourself a handsome salary, but make sure you don't spend it all and forget to pay your taxes and those other important bills.
It's just common sense...
3) Poor Location Since you're going to be running an internet business your physical location has nothing to do with your success.
My mentor took a 2 week vacation to the Hawaiian Islands and he was able to plug his broadband card into his laptop and do all his work right from the beach.
Location makes no difference at all to your success because of the internet.
4) Poor Inventory Management Once again, since you're running an internet business you have all the options in the world here.
Personally, I don't sell any physical products, they are all digital.
So, I have no inventory at all and if you follow the mentor's training and systems you won't have to worry about managing any inventory either.
5) Over-Investment in Fixed Assets I run my online business from my home office.
I can even deduct the square footage of my office from my income taxes! (Ask your accountant about this) The only fixed asset you'll ever need to start running your business is a laptop and an internet connection.
6) Poor Credit Arrangements When you follow the exact steps that's laid out for you in the mentoring system, you will learn how to build your business without any major investments.
You'll be taught how to create "money from thin air" and then use that money to make even more.
It's such a simple concept and yet so many new small business owners think that they need a HUGE credit line available to "float" their new business until it turns a profit.
They couldn't be more wrong! 7) Insufficient Capital (not enough money) There is a common myth that's been around forever.
A myth that "you've got to have money in order to make money.
" Everyone seems to believe that the only people who can succeed in a new business are people who have thousands lying around to invest in their new venture.
That may be totally true in some cases...
If you're going to start a business selling sailboats then you're going to need enough money to buy some sailboats first...
But, we're not selling sailboats here are we? The only investments you'll ever need to worry about with your internet based business are things like domains, hosting, auto-responders, ongoing personal education, customer service, marketing, etc.
Depending on how big your business gets these can run from about a hundred to several thousand dollars per month.
8) Unexpected Growth The true beauty of the internet is the fact that it's all electronic, an invisible web of information that connects us all and has unlimited reach.
Combine that fact with the incredible "real world know-how" you will learn as an member of a mentoring system and you'll be able to handle any level of growth.
The only "catch" is that as your business grows you'll also need to invest more to keep it growing strong, steady and healthy.
But, since you'll be making more, it doesn't really matter.
The Small Business Administration says there are obstacles you'll need to overcome; roadblocks that will hold you back from succeeding.
Well, after reading everything up to now you know that hardly any of those obstacles apply to you.
You can get started right now and not worry about failure.
You can follow every step in the Maverick Money Makers club and you WILL succeed.
The 8 reasons are as follows: 1) Lack Of Experience Being a member of a successful mentoring system, you will already eliminate this reason completely.
As long as you follow the steps that are laid out for you within the member's area you'll have all the experience you need.
You get to learn from the mentor's mistakes and do only what he personally found to be effective.
Your personal mentor's wealth of experience will carry you through any issue with ease.
2) Personal Use of Business Funds This one is simple to get around.
Just don't spend all the money you make in your business on new cars, toys, vacations or other personal stuff.
I'm not an accountant by any means, but one thing I do know is that you've got to pay your bills.
Please do pay yourself a handsome salary, but make sure you don't spend it all and forget to pay your taxes and those other important bills.
It's just common sense...
3) Poor Location Since you're going to be running an internet business your physical location has nothing to do with your success.
My mentor took a 2 week vacation to the Hawaiian Islands and he was able to plug his broadband card into his laptop and do all his work right from the beach.
Location makes no difference at all to your success because of the internet.
4) Poor Inventory Management Once again, since you're running an internet business you have all the options in the world here.
Personally, I don't sell any physical products, they are all digital.
So, I have no inventory at all and if you follow the mentor's training and systems you won't have to worry about managing any inventory either.
5) Over-Investment in Fixed Assets I run my online business from my home office.
I can even deduct the square footage of my office from my income taxes! (Ask your accountant about this) The only fixed asset you'll ever need to start running your business is a laptop and an internet connection.
6) Poor Credit Arrangements When you follow the exact steps that's laid out for you in the mentoring system, you will learn how to build your business without any major investments.
You'll be taught how to create "money from thin air" and then use that money to make even more.
It's such a simple concept and yet so many new small business owners think that they need a HUGE credit line available to "float" their new business until it turns a profit.
They couldn't be more wrong! 7) Insufficient Capital (not enough money) There is a common myth that's been around forever.
A myth that "you've got to have money in order to make money.
" Everyone seems to believe that the only people who can succeed in a new business are people who have thousands lying around to invest in their new venture.
That may be totally true in some cases...
If you're going to start a business selling sailboats then you're going to need enough money to buy some sailboats first...
But, we're not selling sailboats here are we? The only investments you'll ever need to worry about with your internet based business are things like domains, hosting, auto-responders, ongoing personal education, customer service, marketing, etc.
Depending on how big your business gets these can run from about a hundred to several thousand dollars per month.
8) Unexpected Growth The true beauty of the internet is the fact that it's all electronic, an invisible web of information that connects us all and has unlimited reach.
Combine that fact with the incredible "real world know-how" you will learn as an member of a mentoring system and you'll be able to handle any level of growth.
The only "catch" is that as your business grows you'll also need to invest more to keep it growing strong, steady and healthy.
But, since you'll be making more, it doesn't really matter.
The Small Business Administration says there are obstacles you'll need to overcome; roadblocks that will hold you back from succeeding.
Well, after reading everything up to now you know that hardly any of those obstacles apply to you.
You can get started right now and not worry about failure.
You can follow every step in the Maverick Money Makers club and you WILL succeed.
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