The Reason People Go Broke in Business

by Joaquin Reveron

Published on this site: August 28th, 2006 - See more articles from this month

How many times have you seen businesses down the local city street start in big ways, then in less than five years and even at times, in less than a year- they have been completely vanished from the spot? That is the big reality of to our today. In the United States 60-70% of businesses are expected to fail from the first moment they have initiated. Such statistics have to be analyzed in a different perspective as per my offline business experience and my online business current portfolio.

According to my results, plenty of learning lessons from the past and many stories from many of my past and current partners- both offline and online businesses do not achieve their maximum financial potential or go virtually broke in most cases because of not having the proper vision. You see, today there are less than 100 of offline businesses being started worldwide and virtually less than 10% of that 100 businesses are being started online and pushed into the market online.

The reason I say 100 businesses is because of my own judgment and own statistics. Even while we are in the new millennium, people confuse having an offline business and being self-employed. People also confuse and even re-phrase the having of a website, with owning an online business. These are huge mistakes and there are totally different facts and meaning to each one of these words.

Everything has to do with vision. If you visualize a business as working yourself 10-15 hours a day and being completely stuck, having to look out for all your employees yourself, same employees for not robbing you or perhaps you doing all the account receivables of the business- you definitely are self-employed. You do not own a business in such scenario- you are a slave to your own job. You are not able to go on a 3 weeks vacation and breathe well because you know that your business might go down in sales or perhaps the service that you are accustomed to give, may not be offered or achieved. That is the reality of being self-employed. That is the main reality many businesses do not achieve their maximum potential, and years later go broke. Such businesses never have the vision to succeed before they even started. Such businesses are a failure in my opinion, as the owner could never take a 3 weeks vacation because he could not stop thinking about his company and employees. An entrepreneur knows that a business needs smarter people in charge for the task and department he is weak and does not have time to do them alone. The entrepreneur focuses on his strong points and achieves success by having a big vision before the business has even start.

The important point here is- focus on having a business and not being a self-employed person. Self-employed persons own a job and not a business. You need to develop a business that can be set virtually hands-free. In other words, you work because you love too, not because you need too. Many of my businesses on offline and online are hands free. Real Estate can be set hands-free. An eBay business can be profitable and hands-free. You just need to learn from the right entrepreneur.

Joaquin Reveron is a leading expert in both online and offline businesses. His focus online are on eBay and helping people create wealth. He is also a wholesale powerseller and you can read more at http://www.videogamesmystery.com