The job market sucks. That wouldn’t be so bad if not for the fact that it has been sucking for the past two years, and there appears to be no relief in sight.  You know it.  I know it.  Let’s not kid ourselves. So what do you do before your unemployment benefits run out . . . assuming you still have some?

For a rising number of Americans this means start a small business or home business. They figure they will have little overhead, get to be their own boss, spend more time with the family, and hopefully soon be one of those financial success stories they often see on late-night infomercials.

While that may be true for some, the hidden reality is this: success in small business is never guaranteed.  In fact, you will probably become a failure statistic within ten years, and most likely one during the biggest drop-off: within 5 years. This is when over half of all small businesses go OUT of business.

Below is data from the Bureau of the Census produced for the Office of Advocacy of the U.S. Small Business Administration.

While this data looks at new single-establishment businesses, the failure rate percentages are almost identical for all types of small businesses, including home businesses.  These are pretty much the survival rates of new firms over ten years . . .

These failures, by the way, have causes. You want to know the #1 cause . . ?
Going into business for the wrong reasons!

Home businesses are particularly vulnerable to wishful thinking and  illusions of grandeur.  This is primarily because the new business owner or CEO has often only worked for a salary, and hasn’t a clue about what it really takes to be in business!

In Georgia, you can form a corporation for $100, get business cards printed up for $10 and hang up your shingle.  But this doesn’t make you a smart business person.  I know – I’ve had these illusions myself and formed several companies most of whom, by the way, did not survive over 5 years.

What I had to learn – as I assume most of you will need to learn as well – is that there are consequences for NOT knowing yourself, what motivates you, and what hidden decisions you have made that actually prevent you from seeing the truth.

I’ve come up with 7 different and fundamental ways you actually sabotage your home business success, and will cover these items over the next few weeks.  Stay tuned.