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Biggest mistakes Startup / small businesses make
According to data from the U.S. Bureau of Labor Statistics, about 20 percent of small businesses fail within their first year. By the end of their fifth year, roughly 50 percent of small businesses fail. After 10 years, the survival rate drops to approximately 35 percent.
- No market need – 42%
- Ran out of cash – 29%
- Wrong team – 23%
- Outcompeted – 19%
- Pricing or cost issues – 18%
- Unfriendly user product – 17%
- Product without a business model – 17%
- Poor marketing – 14%
- Ignored customers – 14%
- Mistimed product- 13%
- Lost focus – 13%
- Disharmony among team and/or investors – 13%
- Pivot gone bad – 10%
- Lack of passion – 9%
- Failed geographical expansion – 9%
- No financing or investor interest – 8%
- Legal challenges – 8%
- Didn’t use network – 8%
- Burned out – 8%
- Failure to pivot – 7%
Following inadequate funding, poor planning and bad management were the next most common issues to blame for small business failure. (Source: https://www.chamberofcommerce.org/small-business-statistics/
THOSE THAT SUCCEED DO THIS
71% of small businesses have a website, according to a recent survey. Of those with websites, 79% claim that theirs is mobile-friendly. Tellingly, 92% of the 29% of small businesses without a website plan to have one up and running by the end of 2018. (Source: https://www.chamberofcommerce.org/small-business-statistics/)
71% of small business owners hope to attract new business through the use of social media in 2018. Of the social media networks, Facebook is the most commonly used by small businesses as 75% utilize the website to attract customers. After Facebook, there is a significant drop-off, as just 37.5% of small businesses include Instagram in their small business plan. (Source: https://www.chamberofcommerce.org/small-business-statistics/)
32.7% of small businesses spend over $100 per week on social media advertising, while 13.2% of businesses spend $50-100 per week. 30.5% spend $11-50 a week in the lower brackets, and 23.64% spend less than $10 a week. (Source: https://www.chamberofcommerce.org/small-business-statistics/)
“Clarifying the purpose and direction of your business allows you to understand what needs to be done for forward movement,” said Chondra Wilson, founder of Hawthorne, Calif.-based organic skincare company Blu Skincare.
“Being a solo founder doesn’t mean going alone There are many more solo founders who have made a great success of the company, including Pierre Omidyar, the founder of eBay, and Sara Blakeley, the founder of Spanx. We need to remove the stigma from solo founders to empower more people to move forward with great ideas. After speaking to many solo founders, one thing is clear, however: going solo, never means going alone. We need to highlight the different options available to find the right team whether that’s a great cofounder, a first hire, a great community or an accelerator program with the right support. During difficult times, it’s more important than ever to feel connected. Find people who you can talk to about your ideas, your challenges, find a network of people who support you. Talk to them regularly, keep them updated and thank them. Through this, you may find the perfect cofounder when the time is right, or perhaps the great first hire who’s going to help you scale the business. Don’t let going solo stop you from moving forward.”
