Why do you think 4 out of 5 businesses fail and what are you doing to avoid joining the majority?

As a new, small business owner, I think this resonates very much with me, since when you know your craft and just start to figure out all the small things that comes with owning your own business you tend to focus only on the work and not the back end. 

And then there comes the time on paying taxes and meeting with the accountant - and you start to feel anxious since even if you think you know at least a little bit about that side of the business you quickly find out that you don't know squat :) 

I think its crucial as a business owner to know all the sides of it and just educate yourself in all the directions. As always you are one man army. You are the face of the company, the shop worker, the estimator, the web designer, the receptionist, the installer and the guy that keeps track on what materials you have in stock... etc.

I fully agree, it's financials. Lack of knowledge. I would highly recommend business coaching. 

It's the classic E-Myth story! Most people are not entrepreneurs. They are amazing technicians and/or managers, but should not be running their own business. That is the cold hard truth.

E-Myth (Michael Gerber)

*There is also a contractor version of the book, but I suggest reading the original version first*

I'm new and still in my first business. I am 26 months into my mobile detailing business.

Given I haven't shut down my business, I can't speak to why they close.  But, I think about shutting it down all the time, every day in fact.

What I can speak to is what I've done to avoid closing down. But first, a story I heard online. 

This guy grew up watching his dad as a major alcoholic.  Day in and day out, he watched his dad drink and all the stress it caused. But one day, when he grew up and moved out, his dad got sober. Then a year or two later, he was hanging out watching TV with his dad. He turned to his dad and asked, "Hey dad, do you think you'll be sober forever". Looking at his son, his dad said "I don't know about forever. But, I know I'll be sober for at least today".

I like to think of this story whenever I deal with any challenge that takes a long time to accomplish. Considering how many businesses don't make it past the first year even. Or, how the Lindy Effect states that something that has been around for a while is more likely to be around for longer. I set my short term goals to make it just to the 2 year mark and still be in business. When it's especially difficult, I brake that goal down to even just today.  I don't know if I'll still be in business in 10 years, but I'll at least stay in business for today. 

So, what's kept me going is simplifying my goal down to "just stay in business for today", then doing whatever it takes to make it just another day.

Finance and just giving up.... Most think "I'm my own boss I can do what I want" but you literally go from a 9-5 job to a 24hr Job 

"Just keep swimming, swimming, swimming" -Dori

I remind myself that every obstacle I overcome is a moment when some of my competition would falter. The bigger the challenge, the more likely they are to shy away from the effort needed to conquer it. But we choose to rise to the occasion! When times get tough, I envision my competition returning to the comfort of being an employee, lacking the level of commitment that we possess. This isn’t meant to sound harsh—it’s simply a reminder that this journey isn’t for everyone. It’s for those of us with the tenacity to push through!

Oh, and goals, you gotta have goals!

The key point is that even if you have the greatest invention or service, it won't lead to success if nobody knows about it. Visibility is crucial! You need to be recognized within your immediate vicinity before expanding beyond a 20-mile radius, unless you have substantial financial resources. Focus on becoming well-known within that 20-mile radius. Once the majority are aware of you and start recommending your services, then you can consider expanding.

Yea i know what you mean. In my experience ,I've struggle and loss profit when starting a business due to the lack of any basic financial knowledge. One misconception I believe most starting a business is that they would make a lot of money right away, but the truth is, the business makes the money, and there has to be a need for a clear plan for how to pay yourself. Another mistake that I made was not opening a separate business bank account. Mixing personal and business finances had lead to confusion and financial loss.

Excellent points above - couldn't agree more. Also, you might be the best plumber, lawn care tech, cleaner, HVAC, detailer, or whatever in the business - but you need to properly portray that to the customer. Tailoring your "bedside manner" and fine tuning how your business looks and sounds to a new customer makes a massive impact. Even if you fix their problem better/faster than anyone else if you've shown up looking ratty and not acting personable, they won't feel great about your work. And that matters.  

I am in complete agreement with mowtownedmonton.  All of our techs and cleaning personnel are required to be in uniform.  Techs are required to be in company vehicles which carry our logo or the tech has our magnet logo on his vehicle if it meets our standards.  You have to present a professional image.  We also require all new staff members to work with a training person to learn how to talk to the customers and upsell things they notice that the client may not even see or realize.  Add a QR code with a direct link to your google account and build your referrals.  I include it on all quotes and invoices.  New clients want to know that others in the community trust you.