It’s no secret that most businesses have a tough time surviving in America. In fact, 20% don’t even live to celebrate their first birthday. The following infographic by insuranceQuotes.com pinpoints the top six reasons why American businesses fail:
- 14% don’t know, research or pay attention to their customers
- 19% are overtaken by their competitors
- 23% haven’t built the right team
- 29% run out of money
- 42% invest in a market that doesn’t need their products/services
- 82% have problems with their cash flow
Other Key Takeaways
- A small business is one that employees fewer than 100 people. By that definition, almost all businesses in America fall under this category. (The limit usually varies; the SBA’s general standard is fewer than 500 employees.)
- 50% of businesses fail in their fifth year of life.
- Four of the five worst places for small businesses are in California.