When 50% Fail in the First Five Years, How Can Your Small Business Succeed?

You've probably heard the old wisdom that most businesses fail within their first year. However, it's actually the five-year mark where things get dicey. More than half of businesses fail within the first five years, and only one-third are still around after 10 years. If you want to avoid this fate, you'll need to take some particular steps on the road to success.

Have a Niche

Don't be a generalist when you're starting your own business. Find some kind of specialty that you can advertise to the masses to set yourself apart from other brands. For example, if you're opening a restaurant, you might have the freshest seafood in the city because of your proximity to the docks. If you knit every scarf by hand, you might put more attention and detail into your clothes than commercial department stores.

Build Your Network

Take every phone call. Follow every lead. Get in touch with every investor that might help you reach your goals. Industry connections are one of the most important things that you can have as a small business owner, so even if you don't need someone's services today, you might be interested in a favor that they can do for you tomorrow. If nothing else, having a network will spread your name and face around your field.

Know Your Demographic

Advertisements for middle-aged moms should look very different than advertisements for preteen boys. Sales at your college store shouldn't happen during finals week. It's important to know your demographic when considering how to reach and entice them, so do yourself a favor and figure out the ages, genders, nationalities, income levels and shopping habits of your potential clients and customers. If you don't know where to get started with this, use analytics software on your website.

Learn from the Experts

If you have an idea for a new product, talk to inventors, engineers and safety inspectors to see what they think about the item's feasibility. If you're starting a law firm, take workshops like those from The Rainmaker Institute that will teach you the art of landing referrals and marketing your legal services. Whatever you're hoping to achieve with your business, there's probably someone out there who has done the same thing or come from the same place, to use their expertise to supplement your own.

These are just a few ways to increase the odds of success for your small business. It's entirely possible to become part of the one-third that succeeds, but you'll have to be willing to work for it. Good luck!