When starting a business, it’s too important to get equipped with as much useful information as you can. The percentage of small businesses failing in their 1st year is among the most important pieces of information to know. Let’s find out more and also see who can help you get a merchant cash advance with ease.

Know Startup Stats & Get a Merchant Cash Advance

The U.S. Bureau of Labor Statistics (BLS) reports that 774.725 new businesses were launched in the year ending March 2019. Based on the historical data, about 155.000 of these businesses are expected to fail within the 1st 2 years.

Did you know that 20% of small businesses fail in their 1st year, 30% in their 2nd year, and 50% after 5 years of doing business, and 70% in their 10th year?

Having access to the necessary working capital is among the top factors associated with the success of businesses. So, where can you get the necessary funds when in need? It’s simple. Just work with a respectable alternative online lender in your field that can approve you for the necessary business financing without major challenges. 

A true lending expert that helps merchants get a merchant cash advance and other types of business funding will offer you the safest and cheapest possible terms in the space. 

Top Reasons Why Startups Fail

According to the analytics platform CB Insights, as of 2019, the #1 reason why startups fail was “no market need.” Only 2 of the top 20 reasons that startups didn’t succeed had to do with the lack or absence of capital. Here’s the list of the main reasons: 

• No market need
• Lack of cash
• Wrong team
• Get outcompeted
• Pricing or cost issues
• User unfriendly product
• Product without a business model
• Poor marketing
• Leaving customers in ignorance
• Product mistimed
• Lost focus
• Disharmony among team or investors
• Pivot gone bad
• Lack of passion
• Failed geographical expansion
• No financing or investor interest
• Legal challenges
• Not using network
• Burn out
• Failure to pivot

There’s more than 1 reason why small businesses can’t succeed in their 1st year. In fact, only few are able to move forward successfully. Lack of the necessary funds, lack of demand, and poor management are some of the reasons why they fail. 

Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners get a merchant cash advance easily. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.