Disclaimer: In celebration of my company Nel Tax and Financial Solutions completing its fifth year of business, I decided to once again share some words of wisdom to other business owners and entrepreneurs that will help them along their entrepreneurial journeys. Tips and guidance provided are purely for informational purposes only. Enjoy!
As of 2020, the US Small Business Administration reports that about 33% of all small businesses exist long enough to operate beyond year 5 from when they open. This statistic has been consistent since 1995.
Lack of funding and cash flow, poor leadership/management, bad business models, and failed marketing are the top four reasons a small business ceases its operations before reaching year 5. This is why I celebrate so greatly this milestone because it was not an easy feat to make to 5 years.
I hear so many entrepreneurs, visionaries, and small businesses say they want to have generational wealth. However, if the asset that will continue to generate the income that will bring your family wealth into the future is supposed to be your business, you have to make sure you stay in business within your own generation first.
I do not say that to be mean. I want you to live your dreams and to have a company to give your children, and your children’s children, and your children’s children’s children. If familial succession is not the plan, I want you to build an enterprise that will outlive your body so your name will withstand the test of time and your impact will still be felt for future generations.
I ask you, do you want a company to sell or do you want company to sustain?
There is no wrong answer, and one answer will require a different approach than the other. But if your answer was a company to sustain, you are going to have to do more than just scale and make money.
This is not a one and one process, and it will require you to periodically step back and evaluate are you aligned with your timeless truths. But as I learned through mentorships, inner reflections, and sometimes tears, if I want to build something that will outlive me I have to start laying the foundations that will support all the wonderful things my business will influence in my lifetime and in the future.
I want you to join this 5 years club too so we together can break that statistic created in 1995. So, instead of them reporting only about 33% of small businesses exist beyond their fifth year, they will say 66% of small businesses exist beyond their fifth year — and hopefully they can report even an even higher percentage.
Cheers to 5 years!
To contact me: www.neltaxandfinancialsolutions.com/contact
To read the other parts of the series:
Shan-Nel D. Simmons 