Business ownership is a dream that’s shared by many. You’re obviously one of those many or you wouldn’t be reading this article. As a soon to be or new entrepreneur, what I’m about to tell you may scare you, but it shouldn’t!
Knowing the information I’m going to share will help you prepare to avoid one fact. That fact is that most businesses fail! Many business owners find themselves selling assets to make ends meet. It’s hard to hear, but it’s true!
Here are the general failure rates of businesses over different period of time…
1 Year In Business – After one year in business 25% of businesses that started around the same time you did will have failed.
2 Years In Business – After two years in business 36% of businesses that started around the same time you did will have failed.
3 Years In Business – After three years in business 44% of businesses that started around the same time you did will have failed.
4 Years In Business – After four years in business 50% of businesses that started around the same time you did will have failed.
5 Years In Business – After five years in business 55% of businesses that started around the same time you did will have failed.
6 Years In Business – After six years in business 60% of businesses that started around the same time you did will have failed.
7 Years In Business – After seven years in business 63% of businesses that started around the same time you did will have failed.
8 Years In Business – After eight years in business 66% of businesses that started around the same time you did will have failed.
9 Years In Business – After nine years in business 69% of businesses that started around the same time you did will have failed.
10 Years In Business – After ten years in business 71% of businesses that started around the same time you did will have failed.
I know those are staggering statistics, but you won’t fail. You know why? You won’t fail because I’m going to give you the three most important tips in business, and you’re going to take advantage of that information.
The Three Most Important Things to Know In Business
#1: Times Will Get Tough
If you’ve talked to anyone knowledgeable about business, I’m not the only person that’s told you this. The bottom line is business isn’t cash money fairy tales all the time. It takes hard work to get to that point!
As a beginner, no matter what you’re doing, you’re going to need to work hard. You’ll most likely have to work harder, and for more hours than you would if you worked for someone else. This is when the 36% of businesses that fail in the first two years go under. It can be difficult to keep faith in your product or service and your ability to sell that product or service at some times.
Don’t let your fears take you down. You hold the keys to the kingdom have faith in yourself and unlock the door!
#2: Unless you’re In the Accounting Business, Get an Accountant
I’ve seen taxes take down plenty of businesses. Not because there were horrible tax evading jerks behind them either. The businesses failed because they didn’t know what to hold back for taxes; unfortunately they didn’t hold back enough.
The truth is, accountants aren’t the cheapest workers in the world, but you don’t need to hire a full time accountant. Going to a firm may cost you a couple hundred dollars a month, but not doing so could cost you your business.
#3: Think About the Needs of Your Customers
I know, everyone says this. The only problem is that no one elaborates on it.
You already know that you need to provide exceptional customer service. You already know that you need to provide a product that your clients enjoy. However, once you get the best customer service policies in place, and you have the best quality product available, don’t stop dreaming of new ways to make the consumer’s life easier or more enjoyable.
You don’t want to be a one hit wonder, make sure that your product evolves to consumer needs over time!
Final Thoughts
I know the fact that most businesses fail can be scary to new business owners. I was there once too. However, you’re not going to fail. You won’t need to go to a site like settlements.org to sell your annuity. You won’t have to sell your car. Instead, you’ll be buying a new car, and living the life you dream of. Why? You’ll be living the life you dream of because you’ll keep a level head when times get tough, you won’t be attacked by the IRS for filing issues, and you’ll always think of ways to keep your customers happy.
Now, it’s time to put it all into action!