Why Small Businesses Fail - How to Stay Competitive and Succeed

Written by: PeopleKeep Team
Originally published on December 29, 2014. Last updated July 9, 2015.

As someone who has started multiple small businesses, I can tell you with confidence that there are indeed ways to succeed. Take a look around - some of the biggest companies in the world today started out exactly where you are. So this begs the question, why do small businesses fail? We’ll go over this and I’ve got some exciting insight to help you and your small business stay competitive and succeed.

What People Are Sayingdoubt-479567_640

Let’s get this out of the way right off the bat, 8 out of 10 business fail in the first 18 months. Okay, now that that’s out of the way, I can tell you right now that your business does not have to be one of those businesses. Why? You have what it takes to succeed!

The truth is, most small businesses fail because of the lack of money. Thankfully, there are plenty of ways to make sure you keep cash in your small business's account and stay competitive in your industry.

You CAN Succeed - Here’s How

Find Your Competitive Edge

If you don’t know what makes your small business competitive, find it and find it now. What are you doing or offering that is different and better than all of your competitors? Once you know, use your competitive edge--it sets you apart from the rest.

Have Confidence 

Show Your Passion: Listen, I know you started a business because you had the passion to start it. If you have started to lose it -along with your confidence- I need you to stop right now and remember why you started your small business in the first place. Choose to remember this every day. Write it down if you have to! Whatever you do, remember that you need your confidence and passion to make this work.

Hire Right

There are two main parts to your success - employees and customers. You need them both in order to succeed. So, choose employees that can capture your vision and work hard. Because you’re a small business, you’ll have to work closely together as a team. If you and your employees are all one in thoughts, ideas, and passion for your small business, success is only a matter of when, not if.

Treat Your Employees and Customers

You should offer your employees and customers the best you have. Doing so will keep employees around longer and customers will keep coming back. This means that your employees should be treated to benefits and perks such as casual Fridays, team building, paid holidays, and affordable health benefits (they do exist). You don’t have to spend a lot on perks for your employees, either. Many benefits and perks can be offered on a budget. As for your customers, don’t cut corners. Offer them the best you have, too. Remember this: the more you scrimp on the life-force of your business - employees and customers - the more likely your small business will go downhill. Make the perks you offer your employees and customers part of your competitive edge. 

Bonus Material

Know How to Market

Marketing has changed dramatically over the years. Gone are the days that putting an “Open” sign in your window would bring you business. As such, it’s imperative that you understand how to market your small business. Since marketing isn’t accomplished at the flick of a wand, you’ll need to research how to market the most effectively in your industry and on a budget.

Know What’s Out There

Remember that we talked about treating your employees to the best? Did you know that you can offer your employees a health benefit using individual health insurance? You can reimburse them a set amount every month to use towards their premiums. This approach is called premium reimbursement or individual health insurance reimbursement.

Individual health insurance is portable, affordable, and you and your employees will save 20 to 60% on health insurance. You’ll have more money to allocate towards other important aspects of your small business. You can find out more about individual health insurance reimbursement as an affordable health benefit here.

Why do you think small businesses fail and what tips do you have to help others succeed? We’d love to hear your ideas. Comment below.

Topics: Small Business
Originally published on December 29, 2014. Last updated July 9, 2015.


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