How to Ensure Success as a Small Business Startup in 2023

By Stephanie Gomez, Geoffrey Phelan, and Benjamin Wrightson

Standing Out In A Video-First World

The pace of startups in 2023 is increasing as professionals seek to supplement their income to offset the pressure caused by high inflation, soaring gas prices, and food shortages. According to Investopedia, the failure rates for small business startups consistently averages around 20% of businesses that fail within the first year, 50% that fail within 5 years, and about 65% that fail within their first 10 years in business.

There are many reasons why startups fail, but here are some of the most common issues:

• Lack of market need:  One of the primary reasons why startups fail is because they fail to create a product or service that people actually need or want. This is often the result of not doing enough research or testing beforehand to determine if there is actually a viable market for their product or service.

• Running out of cash: Startups often require a significant amount of capital to get off the ground, and if they don't manage their finances carefully, they can quickly run out of cash. This can happen if they overestimate their revenue or underestimate their expenses, or if they fail to secure enough seed capital to sustain their operations. One way to avoid this is by establishing a sales funnel that produces sales online consistently. Hiring an experienced Digital Marketing Agency to build out a successful funnel can help a startup to avoid running into cashflow problems early on.

• Poor management: Startup founders often lack the experience and expertise needed to effectively manage a growing business. This can lead to poor decision-making, inadequate resource allocation, and a lack of strategic vision. Without a solid vision and execution plan to generate revenue, businesses tend to go under.  That's why partnering with experts to help develop a winning plan, can be so valuable from the get-go to avoid the struggles down the line.

• Competition: Even the most innovative startups can face stiff competition from established companies or other startups in the same space. If a startup fails to differentiate itself or stay ahead of the competition, it may struggle to gain traction and survive.

• Legal and regulatory issues: Startups must comply with a range of legal and regulatory requirements, and failing to do so can lead to fines, lawsuits, or even the closure of the business.

• Lack of focus: Startups often have limited resources, and if they try to do too many things at once, they can become distracted and lose sight of their goals. This can result in a lack of progress or a failure to achieve key milestones.

• Poor product quality: If a startup's product or service is not of high quality or does not meet the expectations of its customers, it can quickly lose credibility and market share.

Overall, starting a business is a complex and challenging endeavor, and there are many factors that can contribute to your success or failure. It's super important for entrepreneurs to be aware of the risks and take steps to mitigate them as early as possible.  Schedule a call with Greenville Digital Marketing Agency today, if you don't know where to start, or if you just want some expert marketing and technology advisors to give you some free advice.  We want you to succeed whether you are our client or not!!!