As your company celebrates yearly anniversaries, are you crossing your fingers—or deliberately planning— to make it another year?
I recently conducted a workshop with business owners where I showed them the powerful revenue advantages of choosing risky options. Their businesses have been in business from a couple of years to 27 years. We talked about what it takes to make it past the first 5 years and far beyond.
Business failures are predictable—and avoidable
The top reasons that businesses fail, even after years, is lack of capital and cash. Maintaining a steady flow of cash year over year requires vision, risk tolerance and intense focus on revenue generation.
According to the Bureau of Labor Statistics’ Business Employment Dynamics, here’s what the survival rates look like:
- About 80% (four-fifths) of businesses with employees will survive their first year in business
- About 50% (one-half) of businesses with employees will survive their fifth year in business.
- About 30% (one-third) of businesses will survive their 10th year in business.
These rates are consistent over time, suggesting that year-over-year economic factors don’t have much of an impact on how many U.S. small businesses survive.
In other words, it’s up to you!
What does it take to make it to the 10th year and beyond?
There is one specific behavior of business owners whose companies are thriving at 10 years and beyond: they never quit working on growth.
- They seek risky opportunities
- They know when to drop something that’s no longer paying off
- They engage with outside experts to get fresh perspectives
Did I mention—they take risks?
The top personal behaviors of business owners enjoying thriving longevity are:
- Maintaining extreme focus on growth
- Fulfilling market needs; offering products and services their customers are eager to buy; paying intense attention to their customers.
- Having enough cash to build momentum
- Maximizing their focus on building cash for future investment
- Seeking funding from alternative lenders when needed
- Maximizing value and pricing
- Investing in marketing that works for their buyers (not the marketing trend du jour)
- Pivoting as needed (getting rid of the old to make room for the new)
Since United States’ small business are THE engine of economic growth, every owner who grows their company to 10 years and beyond is justified in having a great deal of pride in their success.
Trivers Consulting Group is celebrating 18 years this year and we’re looking at a bright future of ongoing growth. The single biggest factor in our longevity is being an avid risk taker in order to generate significant revenue. What anniversary is your company celebrating and what do you see in the years ahead?