Last updated: 16/07/2025 at 22:45
Launching a business is one of the most exciting moves an entrepreneur can make. But the harsh reality? Most businesses don’t make it past their first year.
While enthusiasm and great ideas are abundant, sustainability is often lacking. Let’s explore why businesses commonly fail within their first 12 months—and what you can do to stay in the game.
Many new business owners are focused entirely on quick sales—but that strategy alone isn’t reliable or repeatable.
What happens when sales dry up?
Successful businesses monetize engagement, not just transactions.
Build multiple touchpoints such as:
Email autoresponders, Offline newsletters & booklets, events & demo's, info-hotline, online blog, community forum
A survey with an incentive (free ebook, recepies, how-to's, videos), Ask clients for a business testimonial and ask them where they think you can improve
1-on-1 discovery calls or consultations
Be a supplier of sub-niche solutions: safety equipment & clothing, maintenance supplies, devices & software
Print/publish a product catalog based on dropship products, advertisements and list them on your website. Place the catalog at checkout desk and offer a $5 upgrade to take a copy.
Start a membership to keep customers subscribed to after purchase services (maintenance, produce delivery etc)
Some of these offers keep people involved and interested, even when they’re not ready to buy, Memberships can have them subscribed paying you monthly for ongoing support of some type.
Pro Tip: Think beyond the sale. Your “Plan B” should be about showing your Brand leadership values, it's value and versatility. It should hold a high value of interest so that your main business and plan b are in a perfect match for one-anonther.
Competition isn’t bad—but ignoring it is.
Many businesses fail to stand out in areas like:
Location: Poor foot traffic or online discoverability
Branding: Weak identity or message
Experience: Lack of credibility
Pricing: Undervalued or overpriced
In a crowded market, it’s no longer enough to just “show up.” You need to carve out a niche identity and communicate your unique sales proposition clearly and consistently.
While you're focused on sales, your expenses quietly rise. Often, faster than your revenue.
Here are a few unexpected cost increases new businesses often face:
Landlords raising rent due to their own financial pressures
Insurance premiums climbing due to climate risks
Fuel, postage, or ingredient shortages caused by global crises
Emergency repairs or disruptions that weren’t budgeted for
Reality Check: Costs don’t wait for your business to stabilize. You need to plan for inflation, disruption, and emergencies from day one.
It’s tempting to stay “safe” and only plan for the next month—but that’s a trap.
Businesses that grow have a scalable vision that includes:
Expanding networks and marketing reach
Reinvesting profits into better systems
Innovating or improving on industry standards
Differentiating from what’s already mainstream
If your idea is already famous—or forgettable—you’re already behind.
Growth Mindset: Build a business that can stretch with demand, not break under it.
It’s easy to overlook the legal side of business, especially when starting small.
However, these costs add up:
Trademarks and domain protection
Tax filing or ongoing compliance
Business licenses and certifications
Hiring a bookkeeper or legal consultant
These aren't just nice-to-haves—they’re required for legitimate growth.
Even businesses with strong early sales can fail due to poor cost management.
Monthly running costs include:
Staff wages or contractor fees
Utilities and power
Software subscriptions
Maintenance, repairs, and equipment
Ongoing production or inventory restocking
Without careful budgeting, these costs can consume your profits quickly.
Pro Insight: Don’t just chase profit—track cash flow. That’s what keeps the lights on.
It’s not enough to start strong. You need to plan smart, stay lean, and think long-term.
Survival isn’t about luck—it’s about building systems that outlast the initial hype.
If you’re just starting out, ask yourself:
Do I have a backup plan?
Am I solving a real, underserved need?
Have I budgeted for the boring but vital stuff?
Success isn’t guaranteed, but with the right strategy, it’s absolutely possible.
