Why Small Businesses Fail (and How You Can Avoid It!)

Most of us start out being very good at our trade. So good that our friends exclaim “You should go into business for yourself!” Eventually, we take the leap and in the early days, our network carries us. We get a few clients and start to make money. That’s usually when things get scary.

Someone tells us that most small businesses fail in the first two years and we start to worry. We worry about what we don’t know. Fear takes over and we subconsciously pull back. Our business struggles. We don’t know why. The downward spiral begins.

Use Fear to Your Advantage

There is an entire coaching industry devoted to helping you eliminate that fear. The problem is that sometimes, actually quite often, that fear is perfectly justified. Fear is the body’s way of telling us something is wrong.

On some level you know you’re out of your depth. Your fear is signalling you to take action and avoid a threat to your business. Eliminating the fear without addressing the root cause – the threat posed by a lack of skills in some area of your business is pure self-delusion.

Fear doesn’t cause failure. Lack of skills does.

Your mindset works in combination with your hard skills to build a successful business. Smart entrepreneurs pay attention to both sides of the equation. If you have the nagging suspicion that you’re weak in an area of your business, pay attention. Do the work to build (or hire) the missing skills. Then make sure your head is in the right place.

Take a Personal Inventory

Chances are you started your business because you really love what you do, and you’re pretty good at it. But what about all the other areas of running our business? Take time to rate yourself on the 6 skillsets that every successful business owner needs. Ask:

  • Where do I fall short?
  • What happens to my business if I fail in this area?
  • How would failure affect my financial security? My family?
  • Can I hire someone else to do this better than I can?
  • How can I improve my skills here?

What are you doing to improve your hard business skills?

Have you ever wondered why the success you expected still seems just outside your reach? Do you have that nagging feeling that you don’t know what you don’t know when it comes to running your business?

Start with the areas of your business that keep you up at night. What could you do this quarter that would ease that anxiety?  You might take a workshop or look for a business success system that will help you put the right processes in place to grow. Look online for business success resources like tip sheets, calculators and worksheets to help you figure out where to start.

Another terrific resource is the wisdom of other women entrepreneurs. Why not start right now by asking for help on our community forum or in the members’ Facebook Group.

Leave a Comment

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt

Start typing and press Enter to search

Setting boundaries is a leadership skill