The ONE reason why YOU WILL FAIL in IM !!

by Peter Bestel 15 replies
It’s quoted as fact that most businesses fail. Whether it’s in the first year,
second year, after five years or beyond, the reality is that the majority of
small businesses will not succeed.


It could be quite a depressing thought, but I don’t mention it to make you
feel bad, rather to impress upon you how lucky you are to be in business
and to consider the reason why you’re still here and what you can do to
stick around.

So, what is The One reason why you will fail in IM? Or to put a more
positive slant on it, what’s the ONE reason why you’ll SUCCEED in IM?

The answer to both questions is the same, and rather than labouring the
point, the reason is You!

That may seem obvious, but I’ve spoken to many ex-business people about
how and why their business collapsed and very few will take responsibility.

They blame:

A recession, the competition, bank foreclosures, bad debt, failed
contracts, staff issues, law suits… the list goes on.

Even when pushed, many will not take responsibility. The real causes are
not in the list above, the real reason for business failure is a failure to
respond appropriately and in a timely manner to anything that comes
along, and preferably see it coming before it happens.

In actual fact, studies from the major banks in the UK have revealed that
the reason businesses fail is lack of cash flow. Well, that’s like saying,
everyone dies because their heart stops! That may be true, ultimately, but
it’s not the real cause.

I lost my first business early on in 1993. I was in manufacturing. I’d been
struggling to meet deadlines for orders as I’d not been paid for a few jobs
which meant that I couldn’t pay my supplier’s bills. They’d stopped
delivering to me, so I didn’t have the raw materials to complete jobs. I
was being crippled by the bank’s interest charges (around 20%), missing
loan repayments and living on my unauthorised overdraft.

Needless to say, it couldn’t last. Wow! That little recession we had back
then really killed my business…

No it didn’t. I killed my business. I didn’t gather together enough starting
capital, I didn’t market it well, I didn’t organise… anything, I managed staff
poorly, I didn’t ask for help from the right people… believe me, this list
goes on and on.

But I didn’t come to that conclusion until about a year after it folded.
That’s when I began to study business. I bought books and tape series and
most importantly, I opened my eyes to the world around me. I studied
successful businesses. I even went to meet some to ask them why they’re
successful. I became passionate about being my own boss like I never had
been before. What I learned and experienced over those few years has
allowed me to respond differently to situations that would otherwise have
been disastrous for my business.

I now make much better decisions, not always right, but I learn from them
and move on. I try to anticipate trends rather than react to them. I’ve
got office systems in place so I’m organised. I’m fully insured both for
business and life. Everything is backed up. I’ve got friends that support me
and I frequent places like this and open my eyes and ears to watch what
to do and what not to do. Oh, and yeah, I have no debts whatsoever, not
even a credit card!

With the onset of this ‘economic down turn’, this ‘credit crunch’ or
whatever euphemism for recession is being used, you’d better be thinking
how you’re going to capitalise on it. Because, if you just go with the flow,
you’ll be washed down river with the rest of the people who used to run a
business.


Take care


Peter
#main internet marketing discussion forum #fail #reason
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  • Profile picture of the author BIG Mike
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    • Profile picture of the author AndrewCavanagh
      Many years ago when I was running multiple brick and mortar businesses we used to set up a ton of different market stalls with different products to see what people would buy.

      Most of the products we sold flopped miserably.

      In fact I'd guess that we set up at least a dozen different market stalls and tested many hundreds of different products on the market.

      All of which failed.

      It saddened me when I'd see a new stall holder come into the market with their new scheme or dream product.

      We knew from experience that unless they learned to adapt FAST to the market and what they wanted they'd go broke very quickly.

      We failed more than these one stall holders...a whole lot more.

      But we failed at a faster rate, got it out of the way and kept pushing on and testing even when we had 3-6 stalls running continuously that always made good money.

      It pays not to get attached to your failures and keep your eye on your major goal of making a profit.

      Kindest regards,
      Andrew Cavanagh
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      • Profile picture of the author Italian Guru
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    • Profile picture of the author Peter Bestel
      Originally Posted by BIG Mike View Post

      Because I don't believe in failure - because every "Failure" represents an opportunity to learn from and improve upon whatever went wrong. The difference to me is that if I can embrace failure objectively and study the underlying reasons why something isn't working, then in the end, I've succeeded by increasing my own knowledge and will apply it at some future point.
      Absolutely agree Mike. I think this is an important point that I didn't make too well in my OP. What's that phrase? There's no such thing as failure; only feedback.

      Andrew: It took me a year to learn from my first business 'failures' I suppose you've got to have a degree of self-awareness to learn immediately, something I didn't have back then.

      Peter
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      • Profile picture of the author Solidsnake
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        I think there's only one and that is CONSISTENCY
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        • Profile picture of the author Keith Boisvert
          I agree 100%. It is amazing at how quickly I fail in IM. I can probably fail faster than anyone.

          Man, I used to get so pissed when I would flop. It was a lousy feeling at first and I took it personally. BUT, I realized that I actually did learn something and that lesson was applied to the next thing, and the next and so on.

          Persistence certainly pays off so long as you can learn from your mistakes and move on. Once you become detached from feelings and can sit back and evaluate a failure or mistake emotion free...then you start moving forward.

          Ah well, great post Peter.

          Keith
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          • Originally Posted by Keith Boisvert View Post

            I agree 100%. It is amazing at how quickly I fail in IM. I can probably fail faster than anyone.
            Yeah, now! If we had a race last year, I'd have beat you at failing every time! :p
            Signature
            "The will to prepare to win is more important than the will to win." -- misquoting Coach Vince Lombardi
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            • Profile picture of the author Peter Bestel
              You know, it's true that there's probably more mini failures (or 'learnings' as I'll now call them) happening within the Warrior Forum membership than within most other business sectors.

              This forum seems to me to be full of great entrepreneurs who think on their feet and are always willing and capable to try new things. This means that growth will be faster but the number of 'learnings' will be greater.

              It would a fantastic resource if we could share all our 'learnings' as we go along. Maybe it could be a race; see who can get to 1000 learnings first - it wouldn't surprise me if the winner made the most money too.

              Peter
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              • Profile picture of the author TimS
                I have failed many times online but always had a backup plan, even if it was not in place at the time. My wife says I re-invent the internet. For me, it's months of great pleasure interrupted by moments of shear panic.
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                • Profile picture of the author Peter Bestel
                  Originally Posted by TimS View Post

                  I have failed many times online but always had a backup plan, even if it was not in place at the time. My wife says I re-invent the internet. For me, it's months of great pleasure interrupted by moments of shear panic.
                  Having a backup plan, that's part of my original point, Tim.

                  Whilst learning from mistakes and failures is important, this is about taking responsibility for everything that happens to your business and not blaming external factors when things go wrong.

                  If you're unlucky enough to lose all your data because an electrical storm zapped your hard drive, do you blame the weather for not having a back up? I'd hope not. But when the bottom falls out of the widget market and you've got everything tied up in widgets, I've seen so many people say it wasn't their fault. No, the market situation wasn't their fault, but how they allowed their business to respond (or not) was most certainly their responsibility.

                  The buck will always stop with you!
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            • Profile picture of the author michaelcky8
              Originally Posted by Vince Runza Online View Post

              Yeah, now! If we had a race last year, I'd have beat you at failing every time! :p
              Ehhhh..?? I'm only readying the starting blocks - AFTER the starter's gun went off :-(

              This thread is a great write-up, very encouraging.
              Ran an unsuccessful manufacturing business, and I agree strongly the SELF is the major contributor to being unsuccessful.

              Someone, anyone, kick me please....?
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              • Profile picture of the author Peter Bestel
                Originally Posted by michaelcky8 View Post

                Ehhhh..?? I'm only readying the starting blocks - AFTER the starter's gun went off :-(

                This thread is a great write-up, very encouraging.
                Ran an unsuccessful manufacturing business, and I agree strongly the SELF is the major contributor to being unsuccessful.

                Someone, anyone, kick me please....?
                You can do it yourself, Michael...

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  • Profile picture of the author Lightlysalted
    one of the biggest failures of start ups cited is cash flow. Cash Flow is a massive problem, because you can have all the orders in the world 6 months down the line but if you don't have enough working capital now, you can't sustain your business.
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    • Profile picture of the author Peter Bestel
      Originally Posted by Paid Surveys View Post

      one of the biggest failures of start ups cited is cash flow. Cash Flow is a massive problem, because you can have all the orders in the world 6 months down the line but if you don't have enough working capital now, you can't sustain your business.
      I mentioned in my OP that cash flow is cited as the main reason for business failure. But the root cause of poor cash flow is poor management somewhere down the line.

      Poor cash flow isn't something that just 'happens' to a business, it is created and ultimately it is you, the owner who has a responsibility of keeping a positive flow of cash.

      Peter
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      • Profile picture of the author Keith Boisvert
        Originally Posted by Peter Bestel View Post

        I mentioned in my OP that cash flow is cited as the main reason for business failure. But the root cause of poor cash flow is poor management somewhere down the line.

        Poor cash flow isn't something that just 'happens' to a business, it is created and ultimately it is you, the owner who has a responsibility of keeping a positive flow of cash.

        Peter

        EXACTLY! I have spoken to many business owners and worked for many small businesses(as well as owned a few). I have seen it time and time again, where cash flow is killing their business. BUT, they manage to go and get a bank to get them a line of credit to solve the problem.

        Guess what? They then still have poor cash flow, and their line of credit is maxed and they have no cash flow to pay it down.

        Lack of cash flow may be a main factor, but it is the end result of a much larger problem.

        JMO

        Keith
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        • Profile picture of the author Ken Preuss
          I agree with the original post. But I would go even deeper to identify the single factor I believe is the one reason people fail in IM or any other kind of business:

          A lack of revenue

          Several people have mentioned a lack of cash flow which is obviously a direct result of this. But I'm simply talking about sales, sales, sales.

          All a business needs to succeed is customers who actually buy their products/services on a consistent basis.

          Yes you need to watch expenses, no question about it. But when done correctly IM has the least overhead of any business you could possibly be in. Take it from someone who has run several offline businesses too.

          So it comes down to one thing: generating consistent revenue. That's it. Nothing else matters if you don't have revenue.

          Anyone in this business (or any other) who is not directly focused on the fundamentals of marketing and sales is writing their ticket to an empty bank account.

          Ken
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          A Secret to Success: Making serious money online or offline is not complex unto itself - we're the ones who complicate it. Simply sell them what they are already buying.

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          • Profile picture of the author Peter Bestel
            Originally Posted by Ken Preuss View Post

            I agree with the original post. But I would go even deeper to identify the single factor I believe is the one reason people fail in IM or any other kind of business:

            A lack of revenue
            Ken, thank you for agreeing to my OP, but as I said in that post, I don't think you can go 'any deeper' than identifying yourself as the single factor in business failure.

            Whether you cite revenue or cash flow, as the owner, YOU are the reason the business succeeds or fails.

            Peter
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