According to the Small Business Administration study, only half of the new businesses endure for the first five years and barely one-third of them can survive for 5 more years.

While there could be many factors to consider, what do you think are the most common reasons why small business owners fail within the 5-year mark?

There are a few finite errors new businesses make that lead to failure. The great news is, being able to identify these mistakes and creating a plan in place if something transpires can get you back on the track for long-term success. 

Here are our top 5 reasons why most small businesses fail within the 5-year mark.

Lack of Online Presence

Everything today is online. People search for business online, they decide what to purchase or services to avail online and people buy online. If you don’t take advantage of this opportunity to be discovered by potential customers, you will really fail.

Doing things all at once

It is common for starting businesses to not invest much on manpower because of limited resources, resulting in trying to do everything at once. Even though your business is definitely your pride and joy, there are bits of it you need to let go of to be successful. Otherwise, you face the danger of burning out and losing track of the greater direction.

Absence of customer engagement

Your business will definitely crash if you forget to stay in touch with your customers and understand their needs and the reviews or feedbacks they give. Putting your customers on top of your priority will not gain you repeat customers but will expand your customer reach as well.

Poor financial management

Spending money is always easier than earning it. You have to know your cash in and cash flow down to the very last dime. Being able to calculate your ROIs and financial activities will help you keep business running. It is also advised that you should have an emergency funding plan, savings you can call upon in the event of a crisis.

Sure some small businesses fail. But a fear of failure shouldn’t prevent you from chasing your dreams of success. The keys to avoiding failure and keep your business thriving are to make sure you have a plan in place, learning from mistakes and constantly seek to improve.