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4.7 Million Businesses Start Every Year
Every year, 4.7 million new businesses are launched in the U.S. That’s a lot of people trying to turn their dreams into reality. But here’s the breakdown:
- 391,666 businesses per month
- 12,900 businesses per day
That’s right—every morning, you wake up to 12,900 new potential competitors. And these aren’t just hobbyists. They’re people trying to steal your customers and grow faster than you. Maybe it’s the guy who just started a landscaping business across town, or a new online store that just popped up selling exactly what you sell. It’s happening every day, whether you’re paying attention or not.
What Wall Do you need to Break-Through?
As a business owner, you’ve already got a lot on your plate. And if we’re being honest, it’s not just competition that’s keeping you awake. Here’s what else might be lurking in the back of your mind:
- Keeping Up with Marketing – Trends are changing faster than ever. TikTok, SEO, Google Ads—how are you supposed to keep up when yesterday’s strategy doesn’t work today?
- Unpredictable Demand – One month you’re overwhelmed with orders, and the next you’re staring at an empty inbox. How do you even plan for that?
- Customer Loyalty – Just when you think you’ve locked in your best clients, some new business swoops in with a cheaper deal. Now you’re wondering if your customers will jump ship.
- Rising Costs – From rent to payroll to shipping costs, everything’s going up. But if you raise prices, your customers might head elsewhere. What’s the solution?
- Burnout – You’ve spent countless nights working late. Marketing, accounting, customer service—you do it all, and it’s wearing you down.
- Technology Overload – Every day there’s a new app or tool that promises to make things easier, but it’s just another thing you have to learn.
- Fear of Failure – The cold, hard truth is that most businesses don’t make it. Every time a customer leaves or a deal falls through, it’s a punch to the gut.
How Many Businesses Survive?
Let’s talk numbers. Out of those 4.7 million businesses that start each year, 20% fail in the first year. That’s around 940,000 businesses that don’t even make it to the one-year mark.
By year two, 30% more have shut their doors. That’s an additional 1.41 million businesses gone. Here’s the breakdown:
- 4.7 million start
- 940,000 fail in year one
- 1.41 million more fail by year two
That leaves only 2.35 million businesses standing after two years.
Five, Ten, and Twenty-Year Survival Rates
It doesn’t get easier. By year five, only 50% of businesses are still around. That’s just 1.175 million left standing.
At the ten-year mark, survival rates drop even further. Only about 30% make it this far, leaving just 1.41 million businesses.
And if you’re looking at the long game, by the time you hit 20 years in business, only 20% of businesses are still operating. Out of the original 4.7 million, just 940,000 are still standing after two decades.
The Opportunity Is Yours
Now, these numbers can seem bleak, but let’s take a different approach. Every business that fails is an opportunity for you to win. For each competitor that closes up shop, you’re one step closer to grabbing their customers. In the B2B world, clients need reliable partners, and with fewer players, they’ll be looking for someone who’s proven they can stick around.
In B2C, customers are always searching for the business they can trust long-term. If you’ve outlasted the competition, you’re positioned as the expert, the reliable choice in a sea of fly-by-night operations. While others are failing, you’re building your reputation and expanding your reach.
Every morning you wake up, remember this: 12,900 new businesses might be starting, but thousands are also closing their doors. The longer you stay in the game, the more opportunities you have to dominate your market.
Helping Businesses Stay Afloat
Here’s another thought: with so many businesses failing, there’s a massive chance to be the solution. If your business can help others save money, improve efficiency, or reduce costs, you can be the lifeline they need to avoid becoming a statistic. Whether it’s marketing, consulting, automation, or any service that helps a business run smoother, you have the potential to keep them from going under.
Imagine being the business that not only survives but helps others do the same. That kind of value is priceless and positions you as an industry leader—not just surviving the storm, but helping others weather it, too.
We’re Here to Help You Thrive
At our site, we’re committed to helping you beat the odds. We provide free resources, expert articles, and online courses designed to guide you through every phase of business ownership. From marketing strategies to financial management tips, we’ve got everything you need to not just survive—but thrive.
Think of us as your lifeline in a sea of competition. We’re here to help you navigate the tough stuff, avoid costly mistakes, and keep your business growing, no matter the challenge.
Thank you for visiting—and if you’re ready to take control of your business future, create your free account now! Let’s get to work on keeping your business off the failure list. The opportunities are out there. Let’s make sure you’re the one who takes them.