Start a small business today and there is a 50% chance that it will fail in the first five years. It is surprising fact to find that five of every ten businesses will fail before their 5th birthday. There are many reasons why a business might fail in the first 5 years. The idea that someone would start a business armed with hopes, dreams and a seemingly good plan for success only to close the doors not 60 months later is a difficult pill to swallow. Even more difficult for others thinking about starting a small business of their own.
Can a Business Make it Past the 5-Year Mark?
To follow are five reasons why most small businesses fail in the first five years and why Concrete Raising Systems is not only still I business, but looking to expand in the future.
Little to No Experience
Ken Praisewater built homes and was in the insurance business for much of his professional career before joining forces with Jason Roland to form Concrete Raising Systems (CRS). He led his company and his employees through his fair share of economic climates. He had sales experience and could talk to people. He understood the systems around the concrete slabs he was looking to repair, so his product and service were always spot on. Jason Roland was in the home construction business as well. He had years of experience working with crews and building homes to know quality work, quality products and how to combine the two. The two men joined their experience and knowledge more than 5 years ago and it’s paid off.
Both Ken and Jason made a choice to be thoughtful about all the decisions regarding their business. Th e owners make good financial decisions that keep the business solvent. They have equipment that they rely on and take care of so it lasts and does what they need it to do with the precisions they need it for. They know how important adding good people to their team is so they haven’t added anyone just yet. Finding someone with the knowledge, a good work ethic and professionalism they are looking for is proving harder than they thought. That’s what happens when you set the bar high for quality employees. Ken and Jason have managed their resources well and will only hire someone that is a good fit.
Little to No Planning
Ken and Jason look at their calendar every year and every month and make good decisions regarding where to spend their time and dollars. They know the winter months are always slow and usually, work stops during the cold and snowy months. When you run a business that stops running a few months a year, planning is mandatory. They plan on which home shows to attend, which other businesses to partner with and when to expand their business to generate profit. Ken and Jason know that is you fail to plan then plan on failing.
CRS services the Kanas City metro area. Customers don’t come to them they go to the customers. With efficient planning around a weekly schedule, the equipment and truck will be in an area of Kansas City and generate business leads while doing business. It makes little sense for them to work in Platte City and Overland Park in one day.
Do it for the wrong reason
As with many things in life, the reason you do something can make or break you from the start. Marrying for money, taking a job because of the perks, choosing a college because of its location are some of the unfortunate reasons to do anything. Starting a business because you have a passion or expertise around it or starting a business to fill a need may be a better reason and will more than likely give you a stronger start and climb. Ken and Jason have a passion for their concrete lifting business. So much so that it is the only thing they do. Other companies may offer traditional mud jacking or roofing or foundation repair. Ken and Jason only use foam to lift and level concrete driveways, sidewalks, patios, and basement and garage floors.
For these and many other reasons, Concrete Raising Systems is celebrating their 5-year anniversary and show no signs of slowing or closing their doors anytime soon!