Quick Hit: Small Business Failure
“Over the past 3 decades the small business failure rate has remained constant. It doesn’t matter if you started a business 20 years ago or 20 minutes ago, the success/failure rate remains static (See BLS Chart below). Businesses started in hard times fare no better than businesses started in boom times, and contrary to opinion, business startups in boom times has the exact success/failure probability. The key difference is that a business that knows how to perpetually GET and KEEP a customer while they MAKE money is the winner… and the rest simply struggle and ultimately perish. Sad, but true. The good news is you can immediately stack the odds in YOUR favor!” ~ E. R. Haas, CEO, Author, Serial Entrepreneur
The 411…
No long speech, just the fastest approach to maximizing income, increasing profitability, and growing your business into a rising star!
First, watch the above motivational, inspirational and thought-provoking video. Leah will give you the Quick Big Picture in 45 seconds.
This post is the counterpoint to my previous Quick Hit: Small Business Success.
Here we will focus on what goes wrong in businesses of every size and what you can do to overcome it.
I’m not being “Johnny Raincloud” here.
I’m just providing you with the context to see your business as it is, and where you might take it next.
Think about your business in these 3 core areas:
1—Your ability to GET new customers. As you can see from the Forbes/Statista infographic, about 60% of all businesses fail because of poor marketing, a bad idea to begin with (No Need), an inability to compete for prospects and other demand-related issues. The list is endless.
Is there a strong DEMAND for what you sell? Scale 1-10, how well do you bring in new customers?
2—Your ability to KEEP existing customers returning. Again this is caused by many things: Poor product/service, you are the high cost/low-value provider, bad/no post-sale marketing, limited advertising budget, no imagination. This list is also endless.
Is there a strong ongoing NEED for what you sell? Scale 1-10, how well do you keep customers returning?
3—Your ability to MAKE money. Virtually anything and everything will get in the way of turning your business into a consistent money maker. The cost of getting new customers is too high. The cost of return customers is too high. Poor financial controls. Again, lots of reasons — all of which require two things to identify and correct.
Are the ECONOMICS of price vs. costs stacked in your favor? Scale 1-10, how well do you make money?
Strategy and Tools…
Every small business that makes it — leaders who turn their business into a true gold mine — has SOLVED the problems I just raised.
They start with a good idea. They organize for success and learn to out-think… out-smart… out-hustle the competition at every step.
Their actions all lead to greater customer confidence, trust, and satisfaction.
Their value proposition is well-communicated.
Money is made, growth is fueled, and the business becomes a well-oiled profit machine.
Look at your business as it is right now.
Do you have a clear strategy for moving up to true wealth, abundance, and prosperity — however you define it?
Is it running you ragged or are you running it effectively, profitably, and have the expectation that you are building a business worth owning?
Do you have a really great idea customers will love — if they only know who you are, what you do, and why they should buy from you?
Could you make more money if your team made more sales at greater prices?
Be honest. Is it time you either bailed out and stopped the insanity of bucking the system…
Or, make some meaningful changes that will put you on the fast track to success?
No question, this is an easy choice. You’ve invested real money and your heart and soul to make a go of it.
If you believe you can out-perform your competition without both the strategy and tools you need, we say good luck!
If you honestly believe you have a business opportunity that could prosper with some strategic thinking, by all means, get with our program!
If you want to take your business into a true Gold Mine, get MyQuickStrat™. In 15 minutes you will have the knowledge you need to succeed and a Strategic Plan in hand that will get you where you want to go…
Get It ~ Risk Free For 1 Full Year…
This is a VERY remarkable chart!
A picture is worth a thousand words — or a million startups that either make it or don’t.
The good news: It simply does NOT matter WHEN a business is started — in boom times or bust — the survival/failure rate is incredibly static. In 24 months 20% of all businesses started are gone.
In 36-48 months the failure rate soars to over 50%. In 10 years 70% are gone.
The big difference? Leadership with BOTH a living strategy for competitive success and the tools to achieve it.
Get MyQuickStrat ~ Risk Free Now…
Category: Business Growth, Featured
