Business Coaching & Consulting
Venable Consulting is a Florida business coach and business consultant specializing in helping the owners of privately-owned or family-owned small businesses to grow through proven strategies for systematization, team building, and increasing profits.
Small Businesses Need Help
A lot of research has been done and we know that out of every 100 independently owned small business, about 90% of them will fail within 10 years.
The COVID-19 Pandemic Shut-Downs & Restrictions
The COVID-19 shut-downs have been devastating, 25% of the small business that were in business in January 2020 have closed. According to McKenzie and Company, COVID-19 led to the largest drop in the US GDP in history.
Conservative estimates make the COVID-19 Recession look like it will be with us for all of 2021 and possibly 2022 as well. With this in mind, the stresses placed on Small Businesses in the current economy exceed anything that we’ve seen since the great depression.
COVID-19 recession aside, let’s examine Small Business Failure in General…
Small Business Failure Examined
S.C.O.R.E., which is the Service Corps of Retired Executives, has done some research that helps us understand why 90% of small businesses fail in 10 years:
- 78% of them lack a solid plan.
- 73% of them are overly optimistic about their ability to sell, to generate revenue.
- 77% are not pricing their products or services properly, and this is probably the scariest one.
- 70% don’t recognize, or even ignore, their weaknesses and don’t seek help.
Surviving Is Not Thriving
Now let’s get very real.
Most, probably 99%, of small business owners are going to come to a point where they are contemplating selling your business have a tragic shock. They wake up to the realization that they have been doing it all wrong because their business isn’t something that anybody with money would buy.
After all of those years… After all that hard work… After all that great suffering… After all of that sacrifice… After all of the time away from their family…
All of that constant work that they were consumed with during the years preceding this moment when they think to themselves: “How do I get the hell out of here? How do I sell it?”
In its current state, there’s no way they will sell it. Because there is no one - absolutely no one, who wants to buy it. That’s the tragic truth. Most small companies will never be sold. And they will never be sold because the only person who would consider buying one of them is a jobseeker wanting to be his own boss… but that person doesn’t have any money.
What will they do when that jobseeker goes away? Most will just eke out the rest of your business life until they close their business. and then go into subsistence on Medicare collecting social security supplemented by whatever they may have managed save over those hard years running their business, whatever that looks like, whatever that means. The sad and tragic story of most small business owners is that when their business ends, so does their life.
We don’t believe that’s what the owners had in mind, but that is exactly what is going to happen, the sad and sorry reality of the small business marketplace:
You either design your business like you are going to sell it, or
You are going to suck wind when you are done.
If you need support, or even don’t know how design your business so that you can sell it, call us now at 754-333-2003 for a strategy call or Complimentary Coaching Session and find out if we are a good fit.
Venable Consulting was created for this purpose: to make it possible for every independent small business owner we engage to create a company as successful and replicable as a Starbucks.
We help business owners increase their profitability, build amazing teams and free up their time. We give them an awareness of the possibilities in their business, provide education in business building best practices, implement projects to improve the business, and, when coaching the owners, hold them accountable to achieve peak performance.
Call 754-333-2003 today for a Strategy Call or Complimentary Coaching Session
Saving Small Businesses is Saving America
Where do you think jobs come from?
Venable Consulting was created to rescue failing entrepreneurs and fix their companies, and by so doing, saving the principle and objective of free-enterprise in America – the only system in the world where a poor person can
Jim Clifton of the Gallup Corporation wrote on his blog:
You will often hear from otherwise credible sources that there are 26 million businesses in America. This is misleading; 20 million of these reported “businesses” are inactive companies that have no sales, profits, customers or workers. The only number that is useful and instructive is the number of current operating businesses with one or more employees.
There are only 6 million businesses in the United States with one or more employees. Of those, 3.8 million have four or fewer employees — mom and pop shops owned by people who aren’t building a business as much as they are building a life. And God bless them all. That is what America is for. We need every single one of them.
Next, there are about a million companies with five to nine employees, 600,000 businesses with 10 to 19 employees, and 500,000 companies with 20 to 99 employees. There are 90,000 businesses with 100 to 499 employees. And there are just 18,000 with 500 employees or more, and that figure includes about a thousand companies with 10,000 employees or more. Altogether, that is America, Inc.1
That’s it, that’s where all real money and real value comes from and those 6 Million pillars produce the entire $21.3 Trillion Gross Domestic Product2 (GDP) of the United and funds everything, including the $4.4 Billion taken by the Federal Government.3
According to Clifton, the U.S. now ranks not first, not second, not third, but 12th among developed nations in terms of business startup activity. Countries such as Hungary, Denmark, Finland, New Zealand, Sweden, Israel and Italy all have higher startup rates than America does.4
The U.S. Census Bureau reports that the total number of new business startups and business closures per year — the birth and death rates of American companies — have crossed for the first time since the measurement began. I am referring to employer businesses, those with one or more employees, the real engines of economic growth. Four hundred thousand new businesses are being born annually nationwide, while 470,000 per year are dying.5
Business Closings Hold Steady While Business Startups Decline
Business startups have been declining steadily in the U.S. over the past 30 years. But the startup rate crossed a critical threshold in 2008, when the birth rate of new businesses dropped below the death rate for the first time since these metrics were first recorded.6
Net Number of New U.S. Firms Plummets
Business startups outpaced business failures by about 100,000 per year until 2008. But in the past six years, that number suddenly reversed, and the net number of U.S. startups versus closures is -70,000.7
This economy is never truly coming back unless we reverse the birth and death trends of American businesses8. when small and medium-sized businesses are dying faster than they’re being born, so is free enterprise. And when free enterprise dies, America dies with it.
- Gross domestic product (GDP) measures the size of the nation’s economy by the total value of final goods and services that are produced in a year.