Regardless of how hard business owners try, a certain percentage of businesses will fail.
But just how many businesses fail in the first year?
According to our analysis from the latest data from the Bureau of Labor Statistics, approximately 19.6% of small businesses fail within the first year.
The failure rate increases as time goes on. By the end of the second year, 30% of businesses will have failed. By the end of the fifth year, about half will have failed, reported by Entrepreneur.
Companies are most likely to fail in their first three years of business, so if a business can make it to its fourth year, it will be in good shape.
There are many reasons why small businesses fail, including lack of funding, poor management, and market conditions.
By identifying these primary causes and making adjustments accordingly, entrepreneurs can increase their chances of success.
What Can Business Owners Do To Increase Their Chances Of Success
Firstly, they should be organized and create a to-do list each day to ensure that they are not forgetting anything.
Secondly, they should focus on their customers and expand marketing and advertising efforts. Thirdly, they should build a strong team of people who genuinely care about the business according to Bigecommerce.
Fourthly, they should be adaptable and have an agile approach to development in response to changes in the market. Fifthly, they should always be looking for ways to improve their business and make it stand out from the competition.
Successful small business owners also offer some tips worth paying attention to. They suggest building a support network of other business owners who can provide advice and support when needed.
They also recommend being very specific with small business goals and tracking progress towards achieving them (thehartford). Additionally, creativity is important – always look for ways to improve the business and make it stand out from competitors.