Interested in starting a small business, or already own a business and wondering what your long-term chances at success are like? Apparently, if you own an independent restaurant, a retail store, or are a direct seller, your chances aren’t good. In fact, they’re pretty awful.
Small businesses in general fail within the first year about half the time. A whopping 95% of small businesses close before they hit Year 5. More surprising stats about small business success and failure (you’ll see a lot more in the infographic):
- 40% of small businesses are profitable
- 30% break even
- 30% are steadily losing money
- 9% will survive for at least 10 years
So, which businesses fail most often? What seems to lead to their demise? And what propels some small businesses toward amazing success while others wither away in a year or less? Is your business more likely to succeed or fail? The answers to these questions and more can be found in this awesome infographic on small business success and failure.
We loved the Keys to Success section at the bottom of this infographic. It included some really actionable tips, so we’ll summarize here.
Start small: Don’t spend everything you’ve got on your small business. Play it safe by starting small.
Know your market: Be very aware of just who you need to target, what they want, and how to most effectively interact with them.
Maintain quality: Even successful businesses with loyal customers can lose customers and profits by reducing quality. Customers get used to your level of quality–don’t deviate from it unless it’s to increase it.
Listen to customers: They know what they want, and they’ll buy more from you if you’ll just listen to them.
Set company goals: How can you know how well you’re doing or if you’re on track without setting goals?
Plan your inventory: Don’t let running out of something important or being unable to stock a popular product be a stumbling block for your business.
Market your business: Tell everyone about your business online and IRL (in real life). Facebook ads are an excellent way to reach more people online.
Stay focused: Don’t lose your passion and stay focused on your business and reaching those goals.