DID YOU KNOW?
Here are the failure rates, statistically for essentially any business:
1st year - 20% of businesses fail
2nd year - 30% of businesses fail
5th year - 50% of businesses fail
10th year - 70% of businesses fail
One of our passions is changing these statistics. Among other reasons, finances are a large player in failure rates. Our company can help set you up and poise you for an investor to come in. We can help with common pitfalls in almost any industry. We can help setup process’ and procedures to ensure success even when you’re not there. These statistics are a passive representative of what business culture could be, and we believe a little consulting and advise goes a long way to prevent this.
The reason for failure
By and large, there are a solid few reasons why most businesses fail within 5 years:
42% - No market for their services or product
29% - Ran out of cash
23% - Didn’t have the right team
Without being a part of a coop or team of people that can pool experiences and resources, a lot of businesses don’t see these things coming. With the right team of people at your side, we can help avoid these issues and circumvent certain statistic downfalls. Rest assured, you’ll have problems-a-plenty in the future, but negating the largest threats first is an admirable strategy.
Here’s how this all pencils
If 29% of businesses shut down because they run out of cash, how can someone justify paying money for a service like this? To us, the answer is simple. When we hired on our first advisor in a previous company, we heard “you can’t afford to NOT hire this person”. We were losing several thousand dollars (sometimes $20,000 or more) per month and couldn’t figure out why. By taking on more debt, we provided a vehicle out of debt. Sometimes a company needs fresh perspective and new eyes. That’s why we’ve introduced our month-to-month plans. Sometimes a company needs general counsel that can be reached at any time during the day via text, email or phone, so we’ve introduced a yearly, less expensive plan. Whichever service you choose, it should match what your needs are as a business. A lot of companies view advisory and consulting roles as preventative maintenance. It’s cheaper to solve your known problems now than to solve your unknown problems later. There’s a reason why Fortune 500 Companies pay $100,000 / year per person on an advisory board. It’s because decisions matter. How you make them matters. When you make them matters. Every company needs someone in their court who is an expert at what that industry is to overcome these statistics. Sometimes it’s a hard pill to swallow, but a known cost encouraging success is much better than a statistically inevitable cost that could bring failure.