An average of 543,000 small businesses is launched every month in 2019, each of which was born with a money-making business model to drive its founding company to financial prosperity and success. However, only 78.5% of these businesses make it past their first year in the market and by the tenth year, only 34% survive.
What could explain the sudden drop that seems to share a similar pattern every year? If you have ever wondered about the common reasons that drive small businesses out of the game, here’s everything you need to know:
No Market Need
42% of small businesses fail due to no market need. Prior to starting a business, identifying the market gap is essential. How will the product and services that a business offers are able to make the lives of consumers better? If a problem is successfully identified and the products/services offered are able to solve the problem, consumers will be lining up to get the solution.
Poor Financial Planning
The most common cause of business failure is poor financial planning. 29% of business failure was due to poor cash management. Starting a business without adequate financial planning is taking a 50/50 risk. The right way to thrive in a money-making business is to plan how the money is funneled down to the last dime. Conducting research on monthly ongoing expenses such as shipping costs, advertising, and payment gateway fees are essential especially to save costs by finding cheaper solutions that offer the best standards.
Lack of Differentiation
A core element to stand out from other businesses is offering a unique product or service that only your business could offer. 19% of small businesses get outcompeted by ignoring their competitors. There will be businesses that offer similar products and services which makes it crucial to keep an eye on the competitors and convince consumers the value of your products and services; why and what makes your product better.
The most prominent solution to stray as far as possible from business failure is to learn from the mistakes that drive other businesses down. EverusPay might not solve all the business complications but it can help businesses improve cash flow as well as provide an easy payment option for consumers.
EverusPay is an online payment solution that offers merchants a secure and simple way to accept cryptocurrency payments from consumers across the world at a low cost. With easy API integration, merchants can start their online business right away. Integrating EverusPay into your website will allow business owners to grow their customer base as there are already more than 100,000 users in the Everusworld ecosystem. EverusPay not only allows your business to reduce costs and fees and attain a higher level of security but, also provides an element of differentiation. With EverusPay’s cryptocurrency element, making the business unique and allowing the business to stand out from competitors.
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Or visit the EverusPay website at www.everuspay.com