Is Your Business A One-Hit Wonder?

Will your business last for years and years to come? Or is it based entirely on a fad that can easily go out of style? Or maybe your business stubbornly thrives on old technology that will eventually be obsolete.

Existing entrepreneurs should take the needed steps to make sure that their business model will be relevant for a long time - not temporarily. Aspiring entrepreneurs too should think about this well in advance before they even get started. Too often, businesses will fold because their owners were ignorant toward small but critical factors.

Here's a fictional example of a classic mistake that is commonly made: An entrepreneur notices that the word "swagger" is popular amongst the Hip-Hop community. So he decides to launch a clothing line called "SwaggerWear". He finds success for about two years, but then suddenly the word "swagger" goes out of style, and is rarely used. Now his clothing line sounds corny and old-fashioned. Finally, sales come to a halt and the business fails. The business was a one-hit wonder.

Here's another example: An entrepreneur decides to start a carpet cleaning business. Over the course of a year, the business thrives and expands. Suddenly, new technology arrives in the industry that can do the job twice as fast and for half the price. The owner stubbornly ignores this because he doesn't want to have to purchase new equipment again. Over time, his competition takes over because they are faster and cheaper. Eventually, the business comes to a halt because of low demand and high overhead. The business was a one-hit wonder.

These are just a few examples, but there are many other scenarios like this that can lead an entrepreneur down the wrong path. Making money through your very own business is a great thing, but make the right decisions in the beginning and in the duration - so that it will last.