What Makes a Business Successful?

10 05 2010

 

Types of businesses that have failed

 

The question, “What makes a business successful?”,  has most likely plagued business entrepeneurs from the beginning of time.  We have all struggled with the question of what factors cause some businesses to survive and others to fail?  Then we look at similar businesses and ask the same question.  Why do some of them survive and others fail? 

We have been talking for a while about how to develop and grow a home based business along with how to begin to recession proof your income.  We are going to start an ongoing series (not always every week, but several times throughout the year to touch on) that is going to briefly explore some theories about what makes a business successful.  If any of us had an entrepreneurial bent, we  have all watched with interest when new businesses start-up.  We may look at the new business and wonder what they have, what they will offer, and if they will succeed.  We may also wonder why we didn’t come up with that particular idea first.  Or, we may watch another new business start-up and wonder how long it will be before their competitor closes them down. 

At the core of all of these ramblings is the question, what makes a business successful?  We have all heard the theories, the right time, the right place, the right product, along with Location, Location, Location.   But really, is that all it takes to be successful in business?  If you wander into any bookstore, either a local used book store or one of the national chains, you will almost always find a huge business section.  In that section you will discover all kinds of books on theories of how to be successful in business.  

Since there are so many books on the subject, and so many theories, it might be interesting to explore a few of those theories here and perhaps examine some new(ish) theories that have recently come to the forefront.  If you have done any research on the subject of why businesses may succeed or fail, you probably found that there are as many theories out there as there are people willing to give you their theories.  

There was an interesting article earlier this week that talked about the amazing success rates of Amish businesses.  In this article by Geoff Williams, he states that approximately 95% of Amish businesses remain in business after 5 years.  In contrast, slightly less than 50% of non-Amish businesses are still around after 5 years.  This begs the question, what do the Amish businesses do that makes them so much more successful compared the rest of us? 

What may even been more interesting is that the majority of these successful Amish business owners have had a formal education through 8th grade.  Makes those of us with Master’s degrees feel pretty dumb.   As you have seen in several extreme business successes, higher education is not a guarantee of success for a small business.  Formal business training could possibly get in the way of the creative business process.  On the flip side, formal business education can also just as easily help to discover new business trends that would launch your business into the stratosphere.  

So, if formal education is not the defining factor in success, what is?  Again, if you look at the Amish business model, culture does play a significant factor.  Amish communities support each other.  Another possibility is that the Amish business person tends to stick with their strengths.  They are well-known for their expertise in farming, wood crafts, quilting.  The Amish businesses tend to stick with what they know.  

Possibly the bigger factor that allows the Amish business person to succeed where others may fail is that the Amish maintain a very strong value system.  They maintain a strong work ethic, rely on faith, family and high values.  They focus on quality and care about both their customers and the people that they employ.   How many times have you walked into a business only to be treated rudely?  Would you return there, or would you go looking for a business that will treat you with respect and care?  

We may want to take some lessons from the Amish and employ it in our businesses.  It is not a bad thing to go back to what some may term “old-fashioned values”.  We all need to remember to treat others with respect, focus our business on what we are good at, not what others think we should carry (focus on our core competency), and maintain high ethical values.  Perhaps if we focus on what people really need and want instead of us telling our customers what they want, more businesses will become successful. 

We are going to explore some of these items a little more in-depth next week. 

If you are interested in starting your own home-based business and are in need of ideas, please check out www.hawgwash.net.  We may have a business opportunity that will suite your needs.  Some of our business opportunities  are in Waterless Technology products, Stem Cell Nutritionals and Pre-Paid Legal.  Please feel free to contact us with any questions. 

Until then…

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What is Recession Proof Income?

3 05 2010
Bills, Bills, Bills

Recession Proof Your Income

How many times have you heard the phrase, “recession proof your income“?  What do you need to do in order to “recession proof” your income?  Why do you need to do that, and lastly, how can you “recession proof” your income?  This week we will cover what it means to recession proof your income and the hows and whys to accomplish just that.

Let’s first start with the question, what is recession proofing your income?   In a recession, your income does not go as far as it used to.  In order to recession proof your income, you need to find a way to make your money worth more, so that you can purchase at least what you used to be able to purchase.  In today’s economy, the money you earn just doesn’t seem to go far enough anymore.  You may now have to choose between using the car for several errands or just staying home and making do because the cost of gas for the car is more than what you have this week.  You may also have to choose between going to a doctor for health reasons or being able to purchase groceries for your family. 

In a nutshell, in order to recession proof your income, you need to have multiple income streams.  One of the most obvious ways to have more money is to get a second job.  In today’s economy, that can be a difficult thing to do, there are more people looking for jobs than there are jobs to work.  Another problem is obviously time.  If you are working more than a 40 hour work week in your main job, where are you going to find the time to get a second, or third job?  If you get that additional job, you lose that precious time with your family. 

Working a second or third job is not a good use of your resources.  You need to find something to leverage the income you currently have and make it work for you, not you working for your money.   If you have enough discretionary income, you may want to consider investing it in stocks and bonds (which can be risky), or investing in other business opportunities (being a partner in another company).  The object here is to not spend more time away from your family.  If you do not have a lot of discretionary income, you may want to look into business opportunities that offer “passive income“.

Passive income is income that you earn without additional hours spent by you working.  Passive income is money coming in that you do not have to lift a finger to earn, except to put it in the bank, or can be defined as an income received on a regular basis, with little effort required to maintain it.  The key is to find a business opportunity that fits with your lifestyle that will generate passive income and help you to recession proof your income.  One way to begin earning passive income is to get involved in some form of direct selling plan. 

Direct selling works best when time are bad because the number of sales representatives increase in the field.  There tends to be high gross margins, low-cost of entry (you don’t have to spend a lot of money to get started), a very divers amount of products and services to get involved in and huge room for growth.  According to a report from MSNBC Mad Money, direct sales is a recession proof industry.  In the attached video, Jim Cramer talks about why direct sales is recession proof.  He states that the top 15 direct sales companies comprise approximately half of the direct sales market.  He also goes on to state that many direct sales companies have access to the Global Market, not just the continental United States.  Access to a global market without having to spend a lot of your own hard-earned money is a very great way to begin earning additional income without going out to a second or third job.

Hawgwash, LLC offers several types of business opportunities that can earn you the additional income you are looking for.   One of our newest, and strongest opportunities today is in STEMTech.  STEMTech offers nutritional products that enhance the natural release of adult stem cells into your own body.  Their flagship product, StemEnhance, provides the natural stem cell nutrition for your body to release approximately 25% of  it’s own adult stem cells from your own bone marrow into your blood stream.  By having more of your own adult stem cells circulating in your body, those stem cells will assist your body to rejuvenate and repair itself.  The other advantage of the company STEMTech is that they are already international.  You do not need to purchase the rights to sell these nutritional products in other countries.  Currently STEMTech is sold in 14 countries and is continuing to work on opening additional markets. 

If you would like more information on STEMTech and the business opportunities they have to offer, you can view the video, or, you can e-mail us at hawgwash1@yahoo.com.  If you have questions about other income opportunities that we have to offer, please feel free to contact us through hawgwash1@yahoo.com

Until next week…