Why Entrepreneurs Fail. Don’t Be Another Statistic.
Let's talk about Why Entrepreneurs Fail when starting or growing their business.
Small Business Failure Rate
You may have heard that data suggests 90% of businesses fail within the first two years they’re open. That might be a bit misleading, but we’re here to help you avoid becoming another statistic. While it may be a bit of an exaggeration to say 90% of businesses fail, there have been multiple studies that indicate around 90% of small companies are not cash flow positive within 24 months of opening. In this blog post I would like to briefly point out key concepts entrepreneurs must implicate along their road to success.
I was able to start two businesses when I moved here in April of 2015, both with under $1000 in startup capital. I sold my side business I was running in Michigan, plus I had a few pennies saved up from my time at Google, but I didn’t have the type of money to pay the highly skilled labor force I needed. So, instead of taking a small businesses loan, I rolled up my sleeves and did the work myself. Of course this meant many 16 hour workdays and a terrible work-life balance, but I’d rather grind than suffer the consequences of loan interest rates. What I lost in sleep, I gained in revenue. I was able to grow Momentum Digital by 3000% and my other company Phone Repair Philly by 5000%. In order to maximize your profit margin and avoid falling into the red, you must be prepared to absolutely dedicate your life to your business. It doesn’t sound sexy, but when you want it as much as I do, you have to be willing to bust your hump every single day.
Pivoting Your Marketing Strategy
Unless you’ve been living in total seclusion for the past 10 years, you will have noticed that nearly everybody’s life is run by their mobile device. Whether you’re talking about a middle schooler or my grandmother, everybody’s face is buried deep in their smartphone. So deep indeed that their attention can hardly be reached through conventional advertising methods anymore. If your business doesn’t have proper digital exposure such as a visually stunning website that is also mobile compatible, you are losing my friend. However, you may fret not. Momentum Digital is here to lead you into the new age of marketing!
Please stay tuned as we begin our weekly blog series, explaining how you can grow your small business and increase your ability to thrive in this technology-driven era.