Starting a business is incredibly difficult, in fact it’s a lot harder than a lot of people think. You struggle to find a business which is so in tune with its niche that it can just float along with little to no effort. This is probably most clearly reflected in the fact that so many different organizations fail. So, it’s worth looking at why this actually is. Throughout this article, we are going to be discussing start-up businesses in more detail, specifically, why do so many start-up businesses seem to fail and what can you do to avoid doing the same.
How Many Small Businesses Fail?
A small business is defined by the Small Business Administration as any organization which has equal to or fewer than 500 employees. As such, it turns out that a lot of small businesses are quite large by definition, even though they are classed as small. 41.7% of the working population throughout the US is made up of small businesses and as such, it is clear that their success is vital when it comes to the economy.
The fail rate for these different businesses is high. It was revealed recently that about 20% of businesses fail in the first year, 50% fail within five years and then 65% fail within 10 years. This number is clearly very high and as such, it is worth discussing why so many of them fail in the first place.
Working too Hard
This first point may seem tough to wrap your head around, but it is genuinely an issue that a number of small businesses suffer with. Small business owners are not blind to the above stats, they know full well that a large majority of small businesses fail and as such, they put everything they possibly can into ensuring that will never happen. That being said, in doing this a lot of people make it so they become burnt out and the quality of their work and consistency of work suffers as a result. It is important if you are starting your own business that you are giving yourself plenty of time off in order to properly unwind and tackle the next task with good quality in mind. As such, be sure to consider taking up a hobby such as playing on Unibet’s online casino in the US in order to unwind from work for the day – it is a rising popular hobby and one that entirely takes your mind away from work. Knitting, drawing or similar tend to leave the mind free to wander.
Not Enough Funds
Running a business can be costly and it’s not until organizations get started that they realize just how costly. As such, you need to sit down and work out how much things are going to cost to get started up. This will give you a good indication as to how much revenue you plan on taking to stay afloat and whether you should seek out some help with funding in order to see you through the initial start-up phase. Don’t fall victim to the pitfall of not having enough money and make sure you have a sufficient amount ready to help get you going. This includes ensuring that your salary is covered, not just what the business will need to survive.