How to get your small business beyond the failure statistics.
Learn from the business failure statistics, instead of being a part of the failure stats, and build a business that will last.
Show Notes Page: https://www.thehowofbusiness.com/576-beyond-failure-statistics/
Most small businesses don't fail in the first year, but half won't survive past five years; here's how to be on the winning side of that statistic.
In episode The How of Business podcast, Henry Lopez breaks down the often-cited small business failure statistics and, more importantly, what they actually mean for small business owners and entrepreneurs. While over 20% of small businesses fail in their first year, it's the year five mark where nearly 50% have closed that should truly capture our attention.
But this episode isn't about fear; it's about insight and action.
Henry draws from a recent LendingTree analysis of U.S. Bureau of Labor Statistics data to examine why failure rates rise over time. He identifies two key variables that significantly influence business survival: where you start your business (geography) and what type of business you launch (industry segment).
As an example, high-cost states like Minnesota and D.C. have higher failure rates, while California and Iowa show stronger business survivability. Similarly, sectors like trades and professional services tend to outperform restaurants and retail.
The real takeaway, however, is not just about picking the "right" place or business. It's about developing and evolving a strong, profitable, and scalable business model, and ensuring you have enough capital runway to survive the early phases of growth. With real-world insights and practical recommendations, Henry challenges listeners to validate demand, remain adaptable, and avoid falling in love with an idea that doesn't work.
Whether you're in startup mode or reassessing your current business, this episode offers the strategic clarity you need to beat the odds.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com
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