Previously, prospective students for our programme had to finish an entrepreneurial assessment tool in order to “self-evaluate” their readiness.
Actually, the tool was quite effective. It asked about 250 questions, the majority of which surprised those who took the test.
Occasionally, those who took the assessment chose NOT to pursue self-employment and went on to find employment. Maybe that wasn’t so bad after all.
Only 5% of the applicants were ultimately eliminated by this assessment. About 35% of the remaining participants would begin our programme but never succeed in becoming self-employed.
That 35% is the subject of this article.
I’ve worked with small businesses for over 30 years, and during that time, I’ve witnessed a significant change in the kinds of businesses that exist today. Most of this change has been driven by technology.
The internet as we know it didn’t exist back in the late 1980s, which is 30 years ago.
Cell phones weren’t very common. They were enormous, boxy objects that resembled mobile
In WWII films, you might see army phones.
Few, if any, businesses had computers, and fax machines were still a fairly new invention. A company was actually fortunate if it had a typewriter. The majority of business correspondence was still written by hand, and when a copy was required, two sheets of paper were sandwiched together with a piece of carbon paper.
On the domestic front, the majority of homes had either a turntable or a cassette player, and having a VCR was a sign of wealth.
What a change in times!
I’ve seen a tonne of business concepts come and go over the years.
- stores that rent videos
- sedentary exercise “gyms”
- Every town with at least 5,000 people should have an office supply store.
- There was one.
- song stores
- a camera shop
- picture editing
These business concepts were once regarded as “hot” and would have been featured in “blog” articles if blogs had been around at the time!
These concepts, however, didn’t really resonate with everyone.
For this article, I looked at dozens of real, workable business ideas that, for some reason, didn’t pan out for my clients. Six of them are presented here.
Now, let me introduce my observations. I WOULD list these suggestions if I were writing an article on HOT business ideas (which I would never do). You’ll see that they don’t offer anything fresh or novel.
They are well-liked because it seems like there is always room for another.
1. Pet services (take your pick)
Numerous statistics that would support *any* pet-related business are available from me. In fact, anything involving animals is trendy! We adore our animals. This industry is thriving as a result of this love.
Why, then, have I personally encountered a number of clients who weren’t able to succeed in the industry if it’s so hot?
Well, if the entrepreneur is not a fan of animals, the business will fail. You see, the clients who failed at this picked the concept for the incorrect motive.
They adhered to the market statistics that indicated expansion and success. They certainly adored their own animals, but they didn’t care enough about YOUR pet to turn it into a successful business.
Sadly, they weren’t aware of this until after they had begun their business planning and research.
In some cases, they realised it right away before investing any cash in their business. In other instances, they actually executed business leases and bought inventory and fixtures. It would be much harder to bounce back from that situation.
We are aware that all of these businesses have a successful track record, whether they were engaged in dog walking, the production of organic pet treats, raw pet food, mobile grooming, or even pet sitting.
But in order to succeed in a small pet-related business, you must love animals in all their forms!
2. Trades (take your pick)
Trades have historically been among the most popular business concepts. There will *always* be a need for tradespeople, whether they specialise in electrical contracting, plumbing, heating, ventilation and air conditioning, general contracting or another field.
Many professions are well-known! When you really consider it, the high success rate is not all that surprising.
In most jurisdictions, a tradesperson needs to accumulate between 2,000 and 10,000 hours of “on the tools” work experience before they can obtain a trade licence.
Additionally, they must complete countless hours of in-person instruction that includes tests and exams.
They have earned their licence by the time they finally get it. They just seem so dedicated! In actuality, it’s extremely uncommon to see a licenced tradesperson switch industries.
So why do some people try to start their own business using their trade but fail?
According to my observations, it’s the people who can’t balance the tools and the business. They focus solely on the tools while working on them.
You have to understand that business requires you to wear MANY hats. Tradespeople who work for themselves must excel at donning these hats.
Changing your focus from the tools to logistics and day-to-day management is typically required to turn a trade into a successful business. The tools are only about 50% of what is needed, even for a one-person operation.
All of my clients who have encountered difficulties in their trade-related endeavours were unable to achieve this balance. We assisted a few people in adopting the strategy of hiring services to balance their businesses. For example,
- hiring a sales representative with in-depth industry knowledge to write quotes and set up sales.
- the assistance of a front-office employee to handle scheduling, billing, and bookkeeping
- hiring at least 1 person to both keep them company and assist with the laborious tasks. Living and working alone can be incredibly isolating.
So keep in mind that a successful trade unquestionably requires a person to be passionate about and proud of their work. But that doesn’t adequately describe a successful business on its own.
3. Seniors Support Services
Thirty years ago, there were not many senior support services available. The services were needed, but few people were willing to pay for them. Support services for seniors were handled back then by families.
The tide of change has shifted!
Anything that supports seniors today is hugely popular. The list of services available ranges from meal preparation to transportation, respite care to in-home personal supports. More is needed in all markets.
We have “arrived” in terms of demographics, and demand will continue to rise. The Baby Boomer generation, which makes up the largest demographic group, is ageing to the point where they will require these services for themselves. The data cannot be disputed.
Every jurisdiction also has a health care system that is overburdened. The demand for and popularity of services that help people stay in their homes longer is very high. The longer seniors are supported to live safely and independently in their homes, the better their quality of life is.
What causes some senior support services to fail, then? Examining the ones that have succeeded will help you find the best answer to that!
The senior support services that began as one-person operations tend to be the most prosperous, in my opinion.
These businesspeople always had a framework in mind when dealing with the elderly or disabled.
The knowledge gained from this experience grew into a passion that, with help, became a successful business.
All of the unsuccessful candidates lacked this background. They lacked the enthusiasm to help the elderly or disabled. They lacked any prior volunteer or even life experience working with the elderly or the dying.
Almost always, their frame of reference was on the administration side. They read the industry outlook and were aware of the sector’s expansion.
Instead of providing the services directly, their business plan called for coordinating the available resources. They would “book out” carers on an hourly basis after hiring them. In practise, their business strategy
was to function as a support “temp service” for seniors.
While this business model DOES have some merit, it primarily benefits entrepreneurs who have a framework for comparison.
However, operating this kind of business without prior knowledge and experience put my clients at a significant disadvantage. They could have done a better job of understanding the client’s needs.
When the booking needs weren’t properly met, disputes developed between management and the staff. My clients genuinely didn’t grasp the requirements of the clients they were taking care of.
Experience has so much to offer!
4. Bookkeeping Service
One of my clients once told me, “The world will always need Accountants and Cleaners, because most people hate numbers and cleaning!”
Very true! I’ve included both business concepts in this document for that reason.
Why are bookkeepers always in demand?
To begin with, only about 25% of people actually enjoy manipulating numbers.
Even though about 50% of people are capable of doing the work, they don’t like it.
The final quarter simply doesn’t get it, doesn’t like it, and stays away from numbers like the plague.
That is the reason!
The world WILL always need accountants, it’s true!
Why then do “Bookkeeping Services” businesses have the worst failure rates out of all the ones we’ve worked with? (And I’m not overstating this)
Examining the typical bookkeeper and, more importantly, how they think, will reveal the solution.
Have you ever heard the phrase “right brain versus left brain?” According to the science supporting this idea, people who “think” with their “right brain” tend to be more creative and emotional than those who “think” with their “left brain,” who are more logical, analytical, and structured. There is a lot more to it, but I think you understand the general idea.
Studies have shown that people perform significantly better at tasks and in jobs that are in line with their dominant brain side. However, there is more to the science. Just because someone is “right brained” does not necessarily mean they would perform poorly in a role that called for more use of their left side.
Here comes the “whole brain concept!” (ta-daa: cue – clashing symbols):)
According to the whole-brain theory, although people typically excel at tasks that match their thought preferences, they can still extend those preferences to some extent. The degree of the “stretching” varies from person to person. While some people can stretch quite a bit, others may not be able to do so at all.
For example, those who think logically and rationally are more likely to succeed in jobs involving numbers. Some of these individuals may also exhibit strong empathy (i.e., feeling), whereas others may exhibit no empathy at all.
So, let’s go back to the original question: “Why do some bookkeepers succeed in self-employment while others do not?”
These thought preferences hold the key to the solution.
You need to be able to balance your organisational skills with your feelings and emotions, intuition, and problem-solving skills if you want to be successful running your own bookkeeping business.
You need to be diverse.
Only interested in the numbers, bookkeepers will find it difficult to succeed in their own businesses. They are more likely to close their business and look for work in an office.
It resembles the tradesperson who only wants to work on the tools in some ways.
5. Cleaning Service (residential or commercial)
Another one of my favourites is this.
Cleaning services will always be required because the majority of people dislike cleaning, as I mentioned in the previous sections.
Let’s be clear about this now. Nobody needs or wants cleaning services. Finding these individuals is essential to business success. If you know how, it’s actually quite simple to accomplish.
Additional information regarding cleaning services:
- They are frequently simple to establish and set up.
- Their startup costs are low.
- The customers they draw are regulars. They turn into dependable clients who should be seen on a regular basis, typically once every two weeks. As a result, a full-time business can be started without many customers.
- People enjoy extolling the virtues of their housekeepers. In this business, word of mouth is very common.
The majority of cleaning companies I’ve dealt with got it right. They typically became completely self-sufficient after a few months. What I refer to as “fast success” is that.
Only a select few others never succeeded, which really surprised me. It made me take a closer look at their situation.
Except for cleaning their own homes, none of the people had any prior first-hand residential cleaning experience.
Additionally, they had never before paid for house cleaning services. They didn’t have a lot of industry knowledge.
They were already at a disadvantage because of this. They lacked any framework!
Research, and lots of it, is the only remedy for this.
Next, they were duped by how straightforward the business concept was. They believed they shouldn’t have needed to do much research to understand how the industry functioned as a result. They were unable to put themselves in a position to sell effectively because they failed to research their competitors and define a target customer.
In the end, all they had was a terrible notion. It wasn’t well thought out at all!
They all believed they were leaving jobs in the public sector and wanted to simplify their lives. They believed that working for themselves would be a nice way to live stress-free.
Huh? Oh, right! I don’t believe so.
First off, the amount of research should not be determined by how complex the business idea is. In every situation, cleaning services with a higher level of research outperform the competition.
Second, self-employment has its share of stresses, regardless of business concept!
Clients, competitors, sales, selling, suppliers, travel, and employees are some sources of stress. Having a “simple” idea doesn’t always mean being stress-free!
These companies ultimately failed because their owners had no idea what they were getting into. They had discovered a fairly straightforward business idea, but a lack of experience and inadequate research ultimately proved fatal.
6. eCommerce
Okay, after reading the next paragraph, you’ll probably think I’m crazy for including this one.
In the nearly 20 years that I have spent instructing entrepreneurship in my own classroom, I have worked with almost 100 individuals who have suggested starting an eCommerce business. 100 percent of them never even began. I’m not joking!
What surprised you? I guess you could say I’m surprised, but I also have the advantage of knowing where EVERYONE went wrong.
The reason for this 100% failure rate is attitude.
You see, 100% of them all believed that their customers would search for and find them if they offered a good or service through an eCommerce platform.
The phrase “If you build it, they will come” applied to them.
That’s simply not how it operates.
eCommerce in general is not simple. Use my word for it! I know! Before I finally understood how it worked, it took every entrepreneurial quality I possessed, along with a lot of time and money.
Due to how dynamic eCommerce is, in some ways, I’m still learning. The guidelines are constantly changing.
I keep adapting to fit the rules, which is how I differ from other people. I never quit.
Sadly, all of my customers quit!
I find that the majority of my clients who gave up on eCommerce initially experienced “the imposter syndrome.” That is the propensity to feel unworthy and insufficient after learning about firmly established rivals.
The imposter syndrome should never be one of the many reasons NOT to launch an eCommerce business. I advise my clients to put on their blinkers. Pay attention to their advantages. Prioritise the value they can provide for their clients before getting started.
Maintain your course. Always take the long view to succeed.
They actually never started for the third reason, which was that they had a lot of trouble making choices. I can see why this is the case.
The talk “out there” affected my clients, who were the unfortunate ones. They heard more chatter here and there just as they thought they understood what was going on. They were overpowered.
It’s like playing a game of whack-a-mole trying to control the chatter.
eCommerce is frequently the expansive vision of a straightforward idea. My advice is to put on blinkers to make the vision simpler. That is one approach to muting the noise. I also advise making plans for just one course and sticking to them.
Complete the eCommerce offering from beginning to end before working to make improvements over time. It is much simpler to make improvements over time than it is to put something “out there” at first.
Conclusion
I don’t have a blame-assigning mindset when I reflect on my clients and their failed endeavours.
They did nothing improper.
They had every right to want to change something in their lives. They unfortunately fell prey to marketing and the “top 25 business ideas.”
They desired an immediate solution to a difficult issue.
Simply put, they approached it incorrectly.
What then would have been the remedy?
Well, I wouldn’t say that their failures were due to a problem with their idea per se, but rather that the idea wasn’t matched to them well. Every time, compatibility was the problem.
In other words, the business concepts never made sense.
We used to pre-screen applicants by providing them with an evaluation tool, as I mentioned at the beginning. When it should have eliminated 40% of the data, the tool only eliminated 5% of it.
This original tool’s flaw was that a potential entrepreneur had to go through the assessment with a business idea in mind. Sadly, that was equivalent to putting the horse before the cart. As you can see, we never really provided them with a tool to determine whether the business idea was a good fit for them.
not now!
Actually, we use two different tools today to aid in their understanding.
Our system will walk them through the process of identifying a business idea if they don’t already have one.
The outcome is a unique business concept that makes sense.
To assist you in identifying and/or validating your business idea, we provide a short training course that includes these tools. Finding a Business Idea That Suits YOU is what it is called.
The final step for every new entrepreneur is a proper and exhaustive self-evaluation.
How much time and effort a proper evaluation process can spare is truly astounding!
