Are you a part of the COVID-19 small business boom? One of the most popular Dadpreneur Podcast episodes to date covers the topic of Business Plans. The Gig economy paired with the Digital Creator/Influencer economy has created millions of new businesses. Most of these businesses are Sole Proprietorships. As reported by the Census, nearly 80% of Small Businesses had no employees. Why is this data important? Because few Small Business owners feel the need to implement complex processes and systems in their daily operations. Afterall, part of the charm about owning your own business comes back to the idea that you can accomplish things without all the red tape.
Did you know that 99.9% of US businesses are Small Businesses? Learn more in this SBA Report.
The U.S. Bureau of Labor Statistics published an article last month titled “The COVID-19 small business boom: startups surge during pandemic.” According to economist John C. Haltiwanger’s analysis, 2020 was a record year for new business formation, with “the total number of applications in 2020 . . . the highest by far compared to all years for which the data have been available.
What Percentage of Businesses Fail in the first 5 years? Nearly 50% fail by their 5th year in business.
This gets us thinking about another piece of data. According to the BLS more than 50% of new businesses fail by the fifth year in business. The #1 reason for failure is the lack of demand for the product or service. Meaning there is no market fit! Other reasons for failure include lack of funding (cash flow problems), problems attracting the right talent, not researching the competition, etc.
While a Business Plan alone will not keep you from failing, it will help your business prepare for the challenges ahead. In our Episode 20 we provide you with free resources to help you build the best Business Plan for your venture.
You’ll be prompted think about customer relationship questions such as:How the business will get new customers, How the business will keep customers purchasing or using its services, and How the business will grow its revenue from its current customers.