You've probably heard that 50% of businesses fail within the first 5 years. Being an entrepreneur or owning a small business isn't known for being a sure thing. According to the Small Business Administration, this fact holds true across industries. So, whether your business is in retail, food, travel, construction - the rate of success is essentially the same, across the board.
The SBA also says the four main reasons why small businesses fail are lack of funds, poor management, faulty business model, and ineffective marketing. Failure in any of these areas is ultimately due to lack of strategic planning. And, strategic planning is only as good as the research you do. And research takes time. To help local businesses increase your chance of survival, I will be sharing what I know and doing a lot of research on all of these topics.
Lack of money is the thing business owners will readily admit is an issue. It is the number one reason for business failure and it is an even more pressing issue in 2020. So, my first post with resources to support small businesses in New Mexico is all about the money.
Note: I'm not promoting any particular service or institution. YOU need to put in the time to find the best option for you.
Ways to Get Funded
With the second round of PPP loans closing, but many still feeling the impact of the pandemic on their business, it's time to think about how to stay afloat. First and foremost, know where you are at financially and consider options for how to make improvements - cutting costs, improving systems, creative strategies... And, look at all of your funding options.
The fact is, you don't need to be independently wealthy to start and run a business. In fact, a relatively large number of businesses need less than $5,000 to get started (and a relatively large number of independently wealthy business owners are terrible at running their business.)
The primary sources of funding for start ups comes from home equity and personal assets, personal credit cards, and personal savings. But, there ARE other ways to get the money you need for your business. It just requires patience, perseverance, and time. And planning. Never forget the planning. (The majority of funders will want to see your business plan.)