Updated: Mar 18
About 50% of startup businesses fail by their 5th year, and the rate goes up as businesses age. Though the statistics are shocking, that doesn’t mean business failure is inevitable or that you should fear it.
As you begin your business journey, the most pressing question you have is probably “How can I stop my business from failing?” While there are many things you can do to protect from failure, it’s also important to reframe your thinking.
Instead of always living in fear of failure, consider how it can help further shape your business goals. Find out how you can protect from failure and adapt to it. Start living and operating within the realm of confidence over fear!
Do Your Due Diligence and Research
If you’re starting a business, you probably already know this, but success doesn’t come easy. Beyond a regular job, there’s more research, prep work and general educating yourself that you’ll need to put into it.
The first step to preventing failure is putting in the proper amount of business prep work. The more work you put into your business upfront, the less likely you’ll face something unexpected.
Startup research should include everything from market analysis to personal development. Find out as much as you an about your industry, competitive landscape and target customers.
Part of your due diligence should also include developing accurate projections. If you’re seeking investment, investors will use your projections to determine whether or not they move forward with your plan. Extra funding can offer the cushion you need to keep your business moving.
Develop a Strong Business or Marketing Plan
As a new business owner, you may have heard how important it is to create a business plan. The funny thing is, there’s no template for business success. Creating a business plan might help, but it could be a waste of energy depending on your needs.