By Vishal P. Rao
Posted Oct. 6, 2004
A home-based business becomes for the business
owner, an entity in and of itself. Because so
much hard work, blood, sweat and tears goes into
every home-based business, it is easy to view
it as having a "life" of its own and
a home-based business can be more real to the
business owner than anything else in their lives.
However, there is also a
dark side to a home-based business, especially
one that is failing miserably. Part of being successful
within a work-at-home dream also means knowing
"when" to quit, or "fold".
A home-based business can be like a game of cards,
when the "losses" exceed the "wins",
it may be time to give up on the business and
either start another one, or look into other forms
of outside employment.
It has been said, "that
most entrepreneurs fail three to five times"
before they actually start a business that succeeds.
Although it is imperative that entrepreneurs be
persistent, not being able to accept failure,
when it is obvious that failure has occurred,
can be extremely detrimental.
So, how does an entrepreneur
"know" when it is time to give up or
when they should continue? Simple, the amount
of actual "suffering" needs to be measured.
The following "suffering measurement"
should take into account:
1. What type of debt the
entrepreneur is accruing, and how many bills and
necessary needs are being neglected. No one should
live without food, clothing, shelter or the necessary
medical care needed for a gratifying life. If
a home-based business is constantly leaving the
business owner without funds with which to sustain
life, then it is probably time to quit.
2. What type of emotional
pain is the entrepreneur facing? If the business
has become so stressful because of mounting debt,
or the entrepreneur's family is turning against
them because of the business, then it is probably
time to quit.
3. If there is a chance
of losing a home or other holdings and property
because of the bills engendered during the business,
then it is probably time to quit.
4. If the frustration of
having the business and handling the day to day
operations surrounding the business is greater
than the pleasure of owning the business, then
it is probably time to quit.
Notice I have only mentioned
the fact that it is "probably time to quit".
No one but the actual business owner can sufficiently
measure when a business should be declared a failure
and when they, the business owner, should walk
away.
Let's face it, even older
businesses can face renewed challenges to their
survival. Markets can change drastically sometimes,
seemingly overnight. Consumer behavior also can
change quickly. Newer businesses can face start-up
challenges, but older businesses can encounter
significant "bumps in the road" to business
success as well.
All the above factors need
to be weighed carefully before deciding either
to "quit" or "stay" with the
home-based business.
There are some methods that
can be successful for alleviating some of the
financial and emotional stress that accompanies
a failing business:
1. An outside source of
employment can be taken "temporarily",
and the business can be worked on "part-time"
in an entrepreneur's free time.
2. Loans and grants can
be taken to alleviate financial strains until
the business becomes solvent.
3. The entrepreneur can
enlist the aid of family and friends, by allowing
them to "buy into" the business, or
by forming an LLC (Limited Liability Corporation),
wherein the business owner is no longer solely
responsible for debts or liabilities. Most new
business owners start with a Sole Proprietorship
model, so switching to the more encompassing LLC
may indeed aid the business in its quest for survival.
4. Business owners can "downsize"
their expenditures, both in the business, and
in their personal lives. Downsizing of expenditures
can literally save thousands per month and may
indeed "save" the business from ruin!
In reality, there
is no "shame" in failure. Failure at
anything only teaches valuable lessons, lessons
that may be incorporated into success at another
time! If you're suffering in your home-based business,
don't allow pride to stop you from admitting defeat
and moving forward in another area of life! That's
what being an entrepreneur is really all about.
Vishal
P. Rao is the editor of Home Based
Business Opportunities
A website dedicated to opportunities, ideas and resources for
starting a home based business. He also runs the Work at Home
Forum - an online community of folks who work at home.
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