There’s something about being your own boss that’s appealing, but the reality of small business survival is something different. Analysts say that small businesses are key to the economy because they’re responsible for the majority of job creation. If that’s the case, what is the small business survival rate and what can improve that?
Small business survival is tougher than you think
Analysis of data from major sectors across a wide range of industries shows that the percentage of small businesses that are still in the game after five years is somewhere in the low- to mid-40% range. The overall first-year “mortality” rate is about 25%, and according to the Bureau of Labor Statistics, slightly less than half of startups survive 5 years or more; about one-third survive 10 years or more; and about one-fourth survive 15 years or more.
Clearly the first years of a business are the most critical to small business survival, so what can you do today to ensure that your business is still in business in 2030?
Much of what goes into small business survival isn’t as big as you might expect. Assuming that you’ve done your market research, and you’re comfortable with the market conditions you’re in, getting the word out that you’re in business is one of the first and most important things to do. One of the easiest ways to do that is by creating a website.
According to the US Census Bureau, about 75% of businesses in operation today (including home-based businesses) don’t have a website. 3 out of 4 businesses still don’t have a website. I say “still” because in 2014, about 3 out of 4 businesses didn’t have a website. And in 2013, about 3 out of 4 businesses didn’t have a website.
The World Wide Web is a huge source of potential customers who are actively looking for goods and services. Your business has the ability to reach customers well outside of your geographic range, and those sales could improve your small business survival prospects when your business is at its most vulnerable point.
Having a professionally designed website is one of the fastest and most cost-effective ways to promote your business, tap new markets and reach out to customers who may not otherwise know about your existence. If you would like more information about small business survival strategies and how you can put a professionally designed website to work for you, please contact our Creative Director, Dave Ramsell or give Dave a call at (330) 243-0651 to set up a consultation.
Photo Credit: George Rudder, via FreeImages.com