What Causes Business Failure – How to Avoid It

What Causes Business Failure? How can You Avoid Failure?


This is such an important question for any business owner! As I was thinking of a post I made some weeks ago I thought how critical this subject is. So critical that I’m re-posting that post with some changes to make the point more clear. I hope this helps you in your journey to Success!

How many times have we started a business with an MLM or Network Marketing company? I’ve had several, have you?

We tried to make it successful but in time quit because it just wasn’t working. How many times have we had people join our business and start out with enthusiasm, only to leave our business after never achieving their goals of success? This is all too common in MLM or Network Marketing and other businesses.

Failure or Success

How can we avoid this cycle of starting a business, working it for a while and then giving up without success? How can we assure success and the achievement of our goals of financial independence and time freedom? What is the critical issues that cause business failure? First, let me say, not succeeding in a business startup, may not necessarily be a failure for you, IF you learn from the situation and move forward to find what works for you.

So, What causes business failure? How do we avoid those causes? The answers are so simple in concept, yet sometimes hard to implement if one is not willing to put forth the effort to change and grow. Here are 3 simple, yet critical areas which cause many of the failures in business startups. There are other issues, but these are three of the most critical in my view.


1. Lack of Action!

Many businesses fail simply because the person starting it, does not really act on what they know to do.

Why Businesses Fail

If you wanted to become a great cook, how would you go about it? Would you study cook books or watch cooking shows and videos? Would you take a culinary class? Those all sound like good ideas, right? But then what?

Do you then just go about your life as usual, spending you time watching your favorite TV shows and making frozen dinners and hamburger helper meals? Or do you just continue to read books and watch shows on cooking…. over and over and over …. ???

NO! If you want to be a great cook, You Have to Cook!!!! You have to try the new meals you’ve learned about. You have to try experimenting with them and making them your own. You Have to COOK! You have to take ACTION!

It’s the same with Business; you have to take action. Businesses often fail because there is simply too little action. As humans, we tend to do what is easy in our lives. We do the things we enjoy, such as watch TV, instead of do the things that will build our business and change our financial situation in time.

We tend to live for the moment and not take action on the things that will build us a successful future. To be successful in business we have to take action on what needs done. We must plan out what tasks which will give us the results we want and then do those things consistently. We must TAKE ACTION!


2. Not Doing the RIGHT Things!

Not only do we need to take action, but we need to make sure we are doing the Right Things that will lead to your success in achieving your goals. You must decide the main actions you will take to build your business. Will be using a Blog, using Twitter, or Facebook? What will be your main method of building your business? What actions need done regularly to have that method successfully grow your business?

You need a Plan. Develop a plan of action. Will you write a blog every day or twice a week? Will you post to Twitter or Facebook every day? What will you do to grow your presence and reputation on the Web, if that’s part of your goal? Whatever it is, make a plan and plan out the action steps; the action tasks that most critically need done to accomplish your goal.

Don’t let trivial time wasters distract you from the critical tasks that will bring you success. I love learning new technie stuff. I’m a Linux enthusiast and like to learn more tools to use on Linux. It’s easy for me to let that distract me from the critical thing I need to be doing. Whatever it is that distracts you, work to overcome it and do the critical tasks consistently.


3. Not Making it a Habit!

Many well meaning people start out doing what needs done, but don’t make it a habit to do those things. Once you know the critical tasks you need to be doing, make doing them a habit. If you plan to write a blog post every day, then set a time and make it a habit to write that blog post every day. You may miss some days, but make it a habit to do it virtually every day. If you miss it, pick back up the next day and get back in the habit.

There’s an old teaching that if you do something for 30 days, you will own it. That means that if you make yourself do something for 30 days, it will become a habit. So make yourself do those critical tasks every day for 30 days. Make it a habit. In time your business will grow by the exposure you are building with those tasks.

Of course, as mentioned above those tasks need to be the right tasks that will lead to success. If you are struggling to know what tasks to do, struggling to understand the steps to take to build your business, see the links below for a free video which will direct you to a great source of training. There is so much information on the Internet and sometimes it can be confusing. You need a team of successful Internet leaders who are willing to share their success steps with you. Check out the free video below.

Here’s to your Business Success!

Jerry D Ross

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