The Most Tried and Failed Small Businesses

THE MOST TRIED MOM AND POP FAILED SMALL BUSINESSES GENERAL STATS 40% of small businesses are profitable of small businesses fail within the first year 50% 95% fail within the first 5 years chance of surviving the first 4 years Businesses with fewer than 20 30% 30% employees chance of surviving 9% break even 10 years are continually losing money HIGH RISK BUSINESSES INDEPENDENT RESTAURANTS RETAIL STORES DIRECT SALES Owners are often skilled at their craft, but not at business Retail stores are more apt to O Direct sales business owners fail due to fierce competition must have: -exceptional sales ability -stamina -drive to succeed O The owner's ability to raise capital is key in whether a business will succeed or fail O Marketing is key to consumer interest O Restaurants will fail without proper marketing O High traffic locations are important, but often too expensive for business owners Examples include: -Pampered Chef -Mary Kay -Amway O Retail stores require a significant initial investment O Improper training and lack of motivation leads to failure 60% UP TO Number of hours direct FAILURE RATES sellers work per week 80% During the recession, the number of independent restaurants declined by 40% of retail clothing stores fail in the first 5 years less than 7158 10% more than 30 Most retail stores fail due to: poor nagement INDEPENDENT RESTAURANT FAILURE RATE ONLY 20% tough competition of retail products are purchased through direct sales reps 80% 60% 59.4% 45.1% 40% 99% 25.5% 20% poor marketing of direct sales reps suffer significant financial losses Year 1 Year 2 Year 3 Failure rate is higher in areas with a higher concentration of restaurants KEYS TO SUCCESS IN SMALL BUSINESS MAINTAIN QUALITY MERCHANDISE LISTEN TO YOUR CUSTOMERS START SMALL KNOW YOUR MARKET A common downfall is tying up too much cash in overhead at the beginning. Learn as much as possible about your demographic before you open your doors. Select merchandise carefully to meet your market's needs. Customer service should be a main focus. Happy customers will come back. PLAN AND CONTROL MARKET YOUR BUSINESS COMPANY GOALS KEEP IT SIMPLE AND FOCUSED YOUR INVENTORY Plot your course and break down your goals and strategies into a one-year plan. Establish a system to know and maintain your Location is key. Think of cost effective ways to advertise your business . Most successful people do one thing very well and don't spread themselves too thin. inventory level. SOURCES: TOP-BUSINESS-DEGREES.NET http://www.summitbusinesssolutions.ws/docs/reasons_biz_fail.pdf http://www.huffingtonpost.com/2012/02/28/restaurant-industry_n_1307930.html http://www.directselling411.com/for-sellers/myths-facts/a-few-interesting-stats/ DEVELOPED BY N NOWSOURCING http://www.pyramidschemealert.org/PSAMain/news/MythoflncomeReport.html http://www.whitehutchinson.com/blog/2011/02/the-truth-about-restaurant-failure-rates/ http://www.powerhomebiz.com/vol89/success.htm