Business opportunities: Statistics of success and failure as well as possible preventive

Let's face it, business opportunities are fairly quick and easy way to start a business. They are usually "turnkey" operations, where someone buys into a program is delivered either online or offline with all the necessary elements of immediately being in business for themselves. Programs for business opportunities may also be convenient, as many abound, and finding one within a limited budget is pretty easy.

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

1. Choosing one that fits the needs of entrepreneurs and the skills and interests.

2. Choosing one that pays enough in commissions on products or services that make it profitable enough to turn a healthy profit.

3. Choosing one that is wanted and needed by customers / clients.

4. The choice of one that does not exist in a market already saturated. This would lead to too many other choices of suppliers and a rather limited market for the entrepreneur.

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

The reason why the failure rate is also attributable to certain outlooks and requirements that many business opportunity "joiners" fail to take into account when you join:

1. It's no more business opportunities than empty promises, the old "too good to be true" adage? Unfortunately, these types of offerings run rampant both online and offline.

2. The business opportunities catering for a market dying? Markets can vary, so it is necessary due diligence. Research in the markets, just like any other business is crucial.

3. The business opportunity solvent? Talk to other members, and do research. Become aware of any problems in making payments and revenues before entering.

4. It is the business opportunity flexible? The Biz Op restrict members in their methods of advertising, or are inflexible and "distant" in their approach to user concerns / problems.

5. The viable business opportunity? Viability should be financial and personal. In other words, does the Biz Op have a great experience and financial means to meet the needs of "you" personally, for personal satisfaction and sales and marketing approaches?

6. It is the business opportunity that works within the boundaries of federal, state and local? Depending on where a member lives, these laws can vary widely!

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

* Failures (an increase of 15.4% compared to 1993).

* Faults (an increase of 17% compared to 1993).

* Terminations (0.3% increase from 1993).

The Small Business Administration attributes these failures and the highest percentages in the evolution to the fact that now there are smaller companies in the U.S. in general, with a 49% increase in number since 1982.

The Small Business Administration also states explicitly that, statistically, only one in seven can be considered a true "failure", leaving unpaid obligations in their wakes. Others simply sell or close their doors for a variety of other reasons.

Since most business opportunities, at least initially, open with fewer than 100 employees (many are simply the owner, as sole owner and executor of all the "chores" business), then most Biz Ops are reality "small business" and as such all the relevant statistical breakdown can be applied to them. What is really surprising and a bit '"shocking" is that most business failures are not due to external forces, but those that the employer has complete control! These issues include the lack of marketing know-how, lack of record keeping, lack of management skills, lack of financial management, and other business basics, such as employees of control and inability to seek external assistance and tips!

The wise entrepreneur, even if not involved in a business opportunity, try to learn and apply proper procedures, and study appropriate 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. .......