how many businesses fail

how many small business fail

The reason how many businesses fail is counter-intuitive.

As soon as you get this though, your business will ca$h-in.


Mistakes are Mandatory.

That is, if you want massive success.

For every entrepreneur I meet who isn’t afraid of making mistakes, there are 99 others that let fear control their day.

I can’t do anything for the 99%.

But the one percent? It’s the ace in the hole that help their business scale fast.

The underlying reason how many businesses fail is simple.

You, me, and EVERY entrepreneur WILL absolutely, undoubtedly, positively…

Make mistakes.

It’s only a matter of time.

The one percent are entrepreneurs who jump without a net.

It doesn’t mean they’re fearless.

It means they take action in spite of fear. 

They pack their parachute on the way down. AFTER jumping out of the plane.

In other words – one percent of entrepreneurs practice speed of implementation (SOI).

Simply, SOI means they learn something new and go try it.

Even if ‘something new' is data from a failure

Because 80% of the time, whatever we try doesn’t work.

This by no means is easy.

But it’s how many businesses fail, separating the winners from the losers. 

Because the data and knowledge we get from a failure lead to the next idea or test using SOI.

Take for example, a simple Facebook Ad.

A recent conversation with a client will help me show how this works in real life:

A client wanted to run a Facebook Ad campaign.

The first try was to sell a product he convinced himself the market wanted. 

He based his assumption on video views and a tonne of free opt ins.

So, we ran traffic to it.

Needless to say it didn’t sell.

Now, the first thing most (99%) entrepreneurs do, is outcast Facebook. 

Or, say “advertising doesn’t work.”

Why? Because they’ve “lost” money.

But here’s the difference between the 99% and the 1%:

We learned what the market DOES NOT want.

We also learned the audiences he thought were prospects, actually sucked as targets for advertising.

So, this “mistake” was an INVESTMENT in his business experience.

It is knowledge acquired that he won’t forget.

And, it’s knowledge that gives him an edge over competitors.

So I made sure we celebrated.

We didn’t frown about the money “lost” – even though it hurts.

Because had my client not run ads, he would NOT know the audience he first targeted are the wrong people.

Had he worried about making mistakes, and run ads only when things are “right”, we would still be waiting years from now.

Businesses fail because entrepreneurs try to get it “right” before doing anything.

It’s no wonder their business fails.

So, it’s kind of funny when we think about it.

THE BIGGEST mistake is avoiding mistakes.


My head just exploded…

Here are three points you might want to print and slap above your computer monitor:

  1. STOP trying to get it right the first time
  2. MAKE MISTAKES to find what doesn’t work faster than your competition
  3. FAIL FORWARD FAST and often

The last one means – every failure leads to the next step. That step might be another ‘failure’. Or, it could be the final piece that illuminates the bulb.

Ask T. Edison 😉

Anyhoo, here’s the point  – cut and dry:

Mistakes don’t COST money…

“Mistakes MAKE Money”

(print that one out too)

It’s the counter-intuitive part of how many business fail I told you about at the beginning.

I’ll let it sink in.

Because mistakes make money ONLY if you:

  1. don’t repeat them
  2. are willing to pivot from the mistake and try something else
  3. willing to accept yet ANOTHER mistake until you succeed

Read that last one again.

I’ve watched too many entrepreneurs give in too soon and businesses fail because of their lack of commitment.

EVEN when they say “I’m ok with making mistakes.” The truth is, they’re NOT ok with making mistakes. 

They are ok with making one or two…after that, they throw in the towel.

So there you have it.

Are you ready to apply these business essentials? You can choose to be part of the 99% or the 1%.

Whenever you’re ready for the 1%, I can help you. The first thing we’ll do is design a blueprint for your business – preparing for mistakes ’n’ all. 

To set up a time to talk, here’s where you go: Blueprint Strategy with Joey

Have an awesome day!

About the author 

Joey Ragona

Giving heart-centered entrepreneurs, experts, and coaches clear direction & simple next steps to market and grow your business and advance your mission.

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