There are many reasons why two-thirds of all small businesses fail. But you don't have to fall victim to this statistic. You can succeed with a small-business startup by following proven formulas.
On the optimistic flip side, there are over 33 million small businesses in America, and just over 45% of all Americans are employed by them.
"Starting, managing and growing a business is the clearest and most obvious path to wealth creation in America today," said Nick Huber, author of "The Sweaty Startup: How to Get Rich Doing Boring Things."
Huber has a portfolio of companies that does over $30 million in annual revenue and employs over 300 people. He emphasizes that you simply need to pick a proven business model and execute it better than the competition to succeed with a small-business startup.
You Don't Need To Reinvent The Small-Business Wheel
Of the thousands of financially successful entrepreneurs Huber has met, there is one thing they have in common: None of them had a breakthrough idea. They also weren't trying to change the world. They aren't on the cutting edge of technology. They didn't raise venture capital or move to Silicon Valley to create viral apps.
"Most of them started really small and traded their time for money doing the actual work," he said. These include businesses like lawn care, home-service businesses, construction businesses, bookkeeping and trades. "These entrepreneurs stuck with proven business models that work and run their businesses just a little bit better than their competitors," Huber said.
And many are not just making a living, but thriving enough to own private jets and vacation homes in expensive ZIP codes.
Execute The Basics To Succeed With A Small-Business Startup
"Great operators win in every business model," Huber said. "Business is about skills more than anything else. Learning and applying these skills is what separates successful entrepreneurs from those who fail."
The skills he's talking about include fundamental decision-making, problem-solving, closing sales, managing people and delegating.
Poor delegation is a top failure pattern, Richard Hagberg has found. Hagberg is an executive management coach who has coached thousands of leaders. "Successful founders coach others and hold them accountable," Hagberg said. "That's leadership. Micromanagement is not."
Hagberg has also found that the most successful founders are more reflective and less impulsive. Successful founders "know when to pause, gather input and adjust course," Hagberg said. "Speed matters — but thoughtful speed wins. Fast, reactive decision-making might feel productive but it often compounds risk at scale."
Understand That Business Is A Race
The most successful people live with a sense of urgency, Huber says. "Time is your most valuable asset."
He emphasizes the need to get your startup company off the ground quickly so you can learn, revise your plan and improve to start making money as soon as possible.
A properly run business that's following a proven formula should show promise and progress in the first six months, Huber says. If it doesn't, it's time to reevaluate what you're doing, how you're doing it and even if you should still be doing it.
Build The Company To Outgrow You
The best founders eventually shift from "being the company" to "building the company," said Hagberg, who with Tien Tzuo wrote "Founders Keepers." That means founders empower others and install processes to make themselves less essential.
"The goal isn't to stay in control," he said. "It's to build something that thrives without you. That's how you create real value — and legacy. Successful founders don't resist process. They realized that systems are leverage, not just bureaucracy.
"Systems unlock scale," Hagberg said. "Sustainable success comes from building repeatable, predictable engines for growth." To cite one example, McDonald's started with one store and a ruthless adherence to process.
Embrace User-Friendly Technology
Take advantage of no-code and low-code platforms to build your small business without needing extensive technical skills, says Gib Olander. Olander is the chief product officer for Two Barrels, a software development company.
Tools like Shopify, Notion and Northwest Registered Agent make it easier "to create a professional online presence quickly and cost-effectively without needing extensive technical expertise," he said.
Define Success And Then Take The Path Of Least Resistance
How much money do you need coming in every month to live the life that you want? How many hours per week do you need or want to work in order to accomplish this?
"This is your starting point," Huber said. "You need to reverse-engineer what success means to you. Then, take the path of least resistance to get there through a business that matches your goals."
