It’s a well-researched fact that more than half of all business startups fail within their first year. Within five years, 95% will fail. Believe it or not, it’s likely not due to a lack of opportunity or good business sense, but rather a lack of the business owner being able to draw enough pay from the business to support his or her personal living expenses.
Let’s take a look at some of the possible reasons why:
You only THINK you’re putting in 60 strong work hours a week.
It’s a given when you own a business, especially a new one, that you’re going to be really hammering away at building it up. Your family may look at you strangely when you come out of your office because you’ve grown three days worth of facial hair or the clothes you were wearing at dinner on Monday night are still on you, stained and wrinkled (and smelly), on Thursday afternoon. But what were you really doing in there all that time?
It’s so easy to get distracted when there’s a computer in the room, or when your brain is so fried and you look around you at the mess in your office and decide to “get organized”. Here’s a little tip, one I’ve recently put to use myself, and it will save you an insane amount of frustration: Pay someone else to do it. I have a friend whose son just started half-day preschool. For two hours a day, 3-4 days a week, she comes over and does “office manager” stuff for me. It’s well worth the money I pay her, and she gets out of the house and makes some extra cash. Those are merely bonuses though - it helps ME focus on the things I need to be doing, gives me the time to do the important things I need to do, and keeps me organized and well… sane.
Sure, everyone needs a mental break, but if you find yourself taking a break from writing sales letters and hopping on to your favorite game website, only to find yourself 4 hours later having done ne’er a darn thing for your business, then it’s time to really put your priorities in check.
You’re not charging enough.
Okay, so you don’t play games on the computer and your office is minimalized and spotless. You’re still working your finger muscles to the bone and cannot make ends meet on the personal side. Consider that you’re truly not charging enough for your services. Oh yes, it’s great to beat the competition in terms of cost, but if you’re already surpassing them in terms of service (they talk to you directly, you’re on top of emergencies, and you meet or beat deadlines consistently) then you deserve to charge more. You’re only worth what someone’s willing to pay for your knowledge and expertise, and if that means driving away “smaller” clients who can’t afford you, well then so be it. You’ll be making room for people who can afford what you’re worth, and using your time to make the most money you possibly can. We’ll get into “firing clients” another day…
You’re not spending your time wisely.
You’ve set your pricing at a responsible level, you’ve got a couple good clients, you’re working 60 hours a week, you despise Solitaire, and your office is something right out of the “after” shot of something on HGTV - but you’re still not paying your car insurance on time.
When you decide to spend time on marketing - what exactly are you spending your time on? If you’re cleaning up your website and buying Google ads thinking that’s gonna cut it for you, you’re wrong. That’s all great stuff to do, but it’s considered “passive marketing”. It’s making sure that in the event someone does find you, that what they see/experience while trying to learn about your company looks and sounds great. It’s making sure that you get noticed on the sidebar in Google. But it’s not proactively seeking anything.
Put it this way: When you were a kid and played “hide and seek”, if you were the seeker, you always tried to be quiet so that the hiders didn’t know you were coming. As a hider, you also kept quiet so that you weren’t found.
Marketing is the direct opposite of the silence in hide and seek. You need to put yourself out there - send emails and newsletters to people you’ve met, past clients, and people you think could use your services. You have to seek them, but you have to do it LOUDLY. Come up with creative ways to offer a discount to past clients for re-signing with you. Write articles and submit them to blogs that revolve around your topic with a polite request/offer for the blog owner to publish it with your name and a link. Heck, BLOG about your business! Whatever you do, stop focusing so much on your maximum PPC bid and start telling people what you’re all about one-on-one.
The bottom line:
You need to make changes NOW to ensure that your business will thrive enough to support your personal life. Don’t wait for the big boom of success to raise your prices, and don’t waste time on things that take away from the things you could be doing to really grow. If your business isn’t making enough to support you, your business won’t make enough to support itself, and then you’ll become just another statistic… and not a positive one!
Popularity: 10% [?]







