Why 90% of small businesses fail?

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By Nick

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Starting a small business is tough, and statistics show that 90% of them fail within the first five years. Common reasons for failure include a lack of capital, choosing the wrong market, ineffective marketing, and not being an expert in the industry. However, business owners can avoid failure by setting specific goals, conducting accurate research, loving the work, and persevering through tough times. Hard work and dedication can lead to a successful small business, but it’s important to avoid common pitfalls such as bad partnerships and a lack of research.

Why 90% of Small Businesses Fail?

Starting a small business can be exciting, but it can also be a daunting task. According to statistics, 90% of small businesses fail within the first five years. This is a worrying statistic for anyone who wants to start a business. As a business coach, I have worked with thousands of business owners and have identified some common reasons for business failure. In this article, we will discuss these reasons and provide ways to avoid them.

Reasons for Failure

Business owners have identified several reasons for failure, including:

  • Money running out: Starting a business requires a significant amount of money. If you don’t have enough capital to sustain your business, it will fail.
  • Being in the wrong market: Choosing the wrong market can be disastrous for your business. You need to do accurate research and identify a profitable market before starting your business.
  • A lack of research: Starting a business without doing proper research is a recipe for failure. You need to research your market, your competitors, and your customers before launching your business.
  • Bad partnerships: Choosing the wrong partner can be detrimental to your business. Make sure you choose a partner who shares your vision and values.
  • Ineffective marketing: If you don’t market your business effectively, you won’t attract customers. You need to have a solid marketing plan in place before launching your business.
  • Not being an expert in the industry: If you don’t have experience in the industry you are entering, it can be challenging to succeed. You need to have a deep understanding of your industry and your customers.
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Ways to Avoid Failing

There are several ways to avoid failing in your small business:

  • Set goals: Setting goals can help you stay focused and motivated. Make sure your goals are specific, measurable, achievable, relevant, and time-bound.
  • Do accurate research: Research your market, your competitors, and your customers before launching your business. This will help you identify potential problems and opportunities.
  • Love the work: Starting a business requires a lot of hard work and dedication. Make sure you love what you do, or it will be challenging to stay motivated.
  • Don’t quit: Starting a business is challenging, and there will be times when you want to give up. Don’t quit. Persevere through the tough times, and you will eventually succeed.

In Conclusion

Starting a small business can be challenging, but it is not impossible. By avoiding the common reasons for failure and following the ways to avoid failing, you can increase your chances of success. Remember to set goals, do accurate research, love the work, and don’t quit. With hard work and dedication, you can build a successful small business.

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