The Reason 80% of Businesses Fail in 5 Years

This is a concerning statistic but it’s absolutely true. Can you believe it? Only so many of us are even willing to start a business because of the high amount of risk, involvement and investment necessary (both in time and money) to make it profitable.

So it must come as disconcerting news that even if you do try your best and start a business, just talking statistically, there is an 8/10 chance you will fail. WOW! That’s a lot of businesses failing, a lot more than there are actually succeeding. Obviously I’ve been lucky and resourceful enough to actually be one of the long running successful business owners. Our profit margins are high and so it would be pretty hard to sink the ship, but that’s what you get promoting on the internet (easy money, cheap to get sales).

But why is it that 80% of small businesses fail? What does this mean for you and selling beats on the internet? The fact is even if you use advertising on mediums such as YouTube, Soundclick or Soundcloud, you’re still at a disadvantage always. That disadvantage is that everybody around you is trying to do exactly what you’re trying to do, and five years from now you have to have your business continuing onward. Easier said than done, trust me I’ve been in business for six years and you can get hit with a curve ball at any time. It’s just the natural way of business.

Luckily I’m here and available to give you some tips and pointers on how to sell beats for the long term and not just waste away your business over time. The first thing you need to understand is that out of the 80% of small businesses that will fail within those short five years, the vast majority of those failures will be due to poor planning. Don’t start spending money at first, instead spend at least a few months on a notebook with a pen, writing down all your possible ideas before you start randomly trying tactics.

You need the proper foundation, and I can sum it all up in one word: PLANNING. Without proper planning and actually spending the time to ask (and answer) the tough questions you might feel uncomfortable thinking about, you will fail. You need a truly powerful foundation and brand to start with.

For instance a highly articulated marketable website with all the right features to make you money, like we can build for you with our company Web Design Marketer, as one example. You also need a proper logo, the right marketing funnel, the right products and most importantly you must be able to provide long term value to your clients and customers.

Don’t expect this to be an easy ride. The fact is you will need to be smarter, better and more powerful than your competitors to last. To gain this power (discussed thoroughly in our amazing eBook Power) you need the knowledge to make then right moves.

For me, the first several months of starting my business were spent completely on the notebook, trying to come up with ideas. For instance, how am I going to promote?

And I didn’t rely on free methods of promotion either, because in truth you’re not going to be able to make your business take off with free traffic for the most part (not always true, but almost always).

So I started figuring out where I was going to spend money, and how I could make a brand with the least possible amount. This was way before I ran my own web design company and I didn’t have the advanced skills at the time to create a formidable website. So I actually came up with that on my budget, a budget for spending on a proper Soundclick layout and web design.

Now keep in mind I didn’t actually have money to spend on this (lol). So it was important to figure out another important factor: where am I going to come up with this money? But before I could even get there, I still had to figure out what the absolute minimum budget I needed for starting my business out and letting it succeed right away.

I came up with about $800 in advertising budget just for the first month, or that’s what I needed anyway. I continued spending time planning my budget. All in all I needed something like $1200 or $1500 to start my business. I knew this because of proper planning and I had a realistic plan. I KNEW my plan would work because I spent months researching, asking other business owners and investigating what everybody was doing to profit.

The next part of my plan was to come up with the money, so I started thinking of sales I could do to quickly come up with that much money. Pages and pages out of my notebook were spent writing out the steps (all of them) for making this all happen. It was quite a task and took several months.

If you want to not fail, equip yourself with the right forms of power (including knowledge… Again our eBook Power is amazing for this, but Beat Selling Monter and other courses on our website also are hugely helpful. Consider buying all of our courses at once if you don’t have a clear direction on what you want to do, you can save a lot of money this way and seriously succeed.