As a business coach, I help small businesses with their biggest challenges. This episode of the Soar Higher podcast covers the five biggest reasons small businesses go out of business within the first ten years, which include:
1. They expect people to care as much as they do
When you’re passionate about your product or service, it’s easy to assume everyone will share your enthusiasm. Unfortunately, this is often not the case. As a small business owner, it’s important to remember you need to market your product or service to make people want to buy it, even if they’re not initially interested. Failing to do so is one of the quickest ways to kill your business.
2. They overestimate their cashflow
Every business needs money to survive, but startups often underestimate how much they need to get off the ground. Often, entrepreneurs fall into the trap of thinking they can bootstrap their businesses and rely on personal savings or credit cards until they start generating revenue. If you don’t have enough money to sustain yourself and your business during those crucial early months, you likely won’t make it past year one.
3. They underestimate their expenses
Along the same lines, many small businesses fail because their owners underestimate how much it costs to run a business. From office supplies and utilities to employee salaries and benefits, there are a lot of expenses that can quickly add up. Before you launch your business, be sure to do your research and create a detailed budget, including all of your anticipated costs. That way, you can avoid being caught off guard by unexpected expenses down the line.
4. They devalue networking
Strong networking connections are essential for any business. Yet, many startups overlook the importance of networking or think they can go it alone without building relationships with others in their industry. If you want your small business to succeed, you need to get out there and start meeting people. Attend trade shows and conferences, join industry organizations, and collaborate with other companies in your area. The more people you meet, the more likely you are to find customers, partners, and mentors who can help you grow your business.
5. They don’t take the interview process seriously
When you’re hiring employees for your small business, it’s important to take the time to find candidates who are not only qualified for the job but also a good fit for your company culture. However, far too many startups rush through the hiring process in an effort to save time and money. As a result, they end up hiring employees who are ill-suited for their positions, costing them more in the long run in terms of training and turnover rates.
If you’re a small business in the Louisville, KY area, reach out for help. This episode of the Soar Higher podcast with Jason Ballard highlights the ways in which small businesses can succumb to common mistakes that lead to failure. Contact me, Jason Ballard, today to learn more about how I can help you avoid the pitfalls of running a successful small business.
