When starting a small business, the odds are stacked against you to stay in business, especially if you're a woman or part of a minority group. We've rounded up the top reasons small businesses fail, what is in your control to ensure success, and how you can make sure your business grows with the support of a women-led marketing education and networking community.
The most common reasons small businesses fail to stay in business in the first five years
According to the Bureau of Labor Statistics (1), only 50% of small businesses survive past year 5. And a mere 35% of small businesses will succeed through year 10.
The top reasons micro and small businesses fail can be divided into two simple categories:
Reasons within the business owner's control
Reasons out of the business owner's control
Reasons small businesses fail that are outside of the business owner's control
A small or micro business may fail due to a poor economy and inflation, or bad timing for your product or service.
Reasons small businesses fail that the business owner can control or influence
Small businesses have a smaller chance for success when they do not dedicate enough resources to marketing or have poor marketing initiatives, are not clear on who their customers are, do not know how to talk about their product or service in an accessible way, and do not take advantage of resources available to them for support. Businesses may also fail when the business owner relies only on themselves and does not find experts for advice in marketing, accounting, and other essential business functions.
A micro business is more likely to succeed when you:
have a strong business plan
have strong credit and access to capital or startup business loans
make marketing a priority
leverage learning and networking resources available to you
What you can do to help your small business succeed in 2024 and beyond
In a recent article, Matt Schulz, chief credit analyst at LendingTree is quoted saying:
“For women, people of color, the LGBTQ+ community and other underserved populations, there are groups out there aiming to help. Starting a business is incredibly difficult, and the odds are stacked against you in so many ways. You can shift the odds in your favor a bit by enlisting some help from time to time.”(2)
Resources available to small and micro business owners
The Small Business Administration (SBA) is a great place to start when learning how to grow your business in a sustainable way
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What the WickedGood Marketing Membership will teach small business owners
It's easy to get overwhelmed when learning how to effectively market your small business.
With a combined 20 years of experience in marketing, WickedGood Marketing aims to:
Help you avoid scammy tactics that won't actually generate more sales
Direct you toward real learning, so that you don't waste money on expensive courses that get you nowhere
Teach you step-by-step tools that can help you wrap your mind around exactly what your business is and who you serve by teaching you how to create buyer personas, conduct a SWOT analysis, identify your brand voice, and build a real marketing strategy that considers your time and monetary budgets
Why small business owners should consider a networking or marketing membership
Owning a business can feel daunting and overwhelming, especially when the odds are stacked against you. But consider this, people who surround themselves with like-minded peers and a supportive community are more likely to reach their goals. (3)
Being a part of a supportive marketing community will help you:
Learn from other business owners who face similar challenges
Share knowledge and skills from a variety of industries and backgrounds
Build confidence to keep going, even when you face challenges
Ease the burden of stress by sharing your experiences with others who understand
Get referrals for your business
Find opportunities for collaboration, partnerships, and cross-marketing efforts
Not all days are good days, especially when you're a small business owner. We don't know about you, but because there are two of us running this business, we are able to keep each other in check, motivated, and accountable even on the hard days. It would be so much harder to keep going if we were in this totally alone, and that's why we want to be that support for other small business owners. We want to help you learn how to get the word out about your business, keep going even when it's hard, and to reach your business goals one step at a time.
To learn more about how to get support in the WickedGood Marketing Community, sign up for our membership waitlist and get all the info you need to decide if the membership is right for you.
References
1 Chamber of Commerce (2024, July 24). Small Business Statistics. Retrieved September 10, 2024, from https://www.chamberofcommerce.org/small-business-statistics/
2 LendingTree (2024, April 8). Percentage of Businesses That Fail — And How to Boost Chances of Success. Retrieved September 11, 2024, from https://www.lendingtree.com/business/small/failure-rate/
3 Forbes (2021, January 11). Achieving Our Goals, Supporting Each Other. Retrieved September 11, 2024, from https://www.forbes.com/sites/karenwalker/2021/01/11/achieving-our-goals-supporting-each-other/
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