I WILL SURVIVE
Why only 4% of SMBs make it to the 10-year mark
Every year, millions of Americans alone launch a small business (SMB) of some sort. And within one year, 40% of those SMBs will have shut down. Within 5 years, that number jumps to 80%.
And of the 20% that make it to year 5, 80% will fail by year 10. That means only about 4% of small businesses make it.
According to Michael E. Gerber, author of The E-Myth Revisited and the world’s #1 small business guru, that’s because most small business owners make the same mistake. They’re so involved in their business’ day-to-day that they don’t have time to focus on scaling.
But rather than owning a business, they own a totally unmanageable and demanding job. One that’s never done. And eventually, they burn out.
So, here’s how to make sure your business isn’t just another statistic:
- Work on your business (not in it). AKA let your team manage the day-to-day operations. And spend your time figuring out how to scale the business.
- Document exactly how you do things ASAP. That way, you can delegate things off your plate. And the work still gets done your way.
- Make a break from the past. Challenge your team to find a better way to do things. When they do, document it, so it’s always done that way going forward.
When it comes to ads, bet on YouTube
Thanks to the latest iOS update, running effective Facebook ads basically became mission impossible. And if you’re like most small businesses, you’re probably still throwing money at it – and hoping for the best.
But you should stop… like now. Because despite all the Facebook ads hype, it might be time to switch your ad spend to YouTube. AKA where ads are actually working and your target customer is already hanging out.
Per a Pew Research Center study:
- America is obsessed with YouTube (81% of adults use YouTube, which is the only platform that’s up 8% from 2019)
- Older folks still love Zuck (50% of Americans 65+ use Facebook)
- But older folks also love YouTube (49% of Americans 65+ use Facebook)
- The younger generation is everywhere (95% of people ages 18-29 are on YouTube, 71% on Instagram, and only 70% on Facebook)
- Facebook users log on the most often (70% of Facebook users log on daily compared to 54% of YouTube users)
Don’t get us wrong – we’re not saying YouTube should be 100% of your ad strategy. But while Facebook ads simply aren’t working, it should definitely be a decent-sized chunk.
How to create a stand-out interview process
Most companies don’t get the interview process right. For some, it’s because their process is super sloppy – leaving a bad first impression. For others, it’s their interrogation-like approach – which doesn’t make candidates feel welcomed.
Either way, the results are the same: these companies often hire all the wrong people. And that can be costly. Because hiring the wrong person can cost up to 30% of their first-year salary.
So, here’s how you can ace the interview process and secure the best candidates every time:
- Do the prep work. Get clear on exactly what qualities and skills you want your ideal candidates to have. And set up a framework to measure those in the interview process.
- Conduct a phone screen. This is to make sure your candidate hits all your non-negotiables and that they fit in well with your culture.
- Have them speak with the hiring manager. But make sure this is more of a conversation as opposed to an interview. That way, you can see if they’ll work well together.
- Give the candidate a project. Have them apply their skills in a problem similar to what they’ll do in their job (if they’re hired). That way, you know they can walk the walk.
- Meet and greet with their future teammates. When candidates meet with their entire team, you can see if there’s some great chemistry between the people they’ll work with.
This week’s highlight reel
- Welp, that was anticlimactic. After weeks of Alabama warehouse workers speaking out against Amazon’s unsafe working conditions, the workers voted not to unionize.
- Move over, Joe Exotic – there’s a new Tiger King. Tiger Global (a VC fund whose portfolio includes Stripe) closed one of the biggest venture funds ever with $6.7B.
- As CMO appointments grew in 2020, only 45% of them were women. A disappointing 5% decline compared to the previous 6 months.
- When it comes to marketing, chances are good texting will replace email. So, Salesforce is getting ahead of the curve by investing $40M into Community, a text-marketing platform.