Without the resources or capital available to larger business, running a small business can be particularly hard. Forbes.com recently published an article that provided some eye-opening  statistics regarding the success of small businesses. In part, they wrote that “20 % of small businesses fail in the first year, 30% in their second year, 50% by their fifth, and 70% beyond their tenth.”  These statistics  undoubtedly can make small business owners nervous and question the stability of their business. However, the article did share what businesses who fail in the first year have in common. We’re providing them here, so you do not have succumb to these pitfalls.

First, a small business whose products are not clear and are confusing to consumers are more likely to fail. You should be able to sum up the products or services that you offer in a sentence or less. Second, small businesses that lack structure typically do not last. Jennifer Dawn, a “serial entrepreneur” also remarked that the structure of a business, to include its day to day operations often times reflects the “founder’s maturity.” She furthered explained that, “[t]he character strength of the owner is vitally important to the success or failure of a business.” Lastly, small businesses owners must ask themselves, “Am I ready?” Often times, small businesses fail because the owner is simply unprepared mentally to take on the various challenges that may arise. Katie Bagoy explains that “ . . . the #1 reason businesses fail due to founder mindset.” Further, she states that “ . . .  successful business owners find a way to move forward. They pivot, they learn, they grow,  and they develop resilience to stay in the game until they find success.”

To read the full article, check out the following link: https://www.forbes.com/sites/briannawiest/2020/01/24/small-businesses-that-fail-in-the-first-year-always-have-these-3-things-in-common/#341690bb26c7

We here at the Small Business and Entrepreneurship Clinic would love to help you with your small business needs. Contact us at businessclinic@elon.edu.