The SBA statistics show that over 80% of small businesses fail in the first year. Starting a new company is hard. So how can you ensure you have a higher chance of success?
We asked business lending company Clarify Capital Finance. They recently surveyed 500 small business owners to find out key mistakes you should avoid. Combined with yearly statistics from the Census Bureau, Clarify has published a report
Their research report showed that a majority of the businesses failed due to lack of working capital. Without funding, it gets hard to pay essential bills, pay for employee salaries, and suppliers.
The top 8 takeaways from the report are:
- Not knowing who your best customers are
- Thinking success will come overnight
- Spending your marketing budget too quickly
- Not scaling the business properly when things start to work
- Hiring the wrong people
- Not having a website
- Not understanding the importance of having cash
- Underpricing your service or product
To learn more about how to avoid these mistakes, take a look at Clarify’s infographic from the survey below: