576 - Beyond the Failure Statistics

576 - Beyond the Failure Statistics

Author: Henry Lopez August 4, 2025 Duration: 19:24

How to get your small business beyond the failure statistics.

Learn from the business failure statistics, instead of being a part of the failure stats, and build a business that will last.

Show Notes Page: https://www.thehowofbusiness.com/576-beyond-failure-statistics/

Most small businesses don't fail in the first year, but half won't survive past five years; here's how to be on the winning side of that statistic.

In episode The How of Business podcast, Henry Lopez breaks down the often-cited small business failure statistics and, more importantly, what they actually mean for small business owners and entrepreneurs. While over 20% of small businesses fail in their first year, it's the year five mark where nearly 50% have closed that should truly capture our attention.

But this episode isn't about fear; it's about insight and action.

Henry draws from a recent LendingTree analysis of U.S. Bureau of Labor Statistics data to examine why failure rates rise over time. He identifies two key variables that significantly influence business survival: where you start your business (geography) and what type of business you launch (industry segment).

As an example, high-cost states like Minnesota and D.C. have higher failure rates, while California and Iowa show stronger business survivability. Similarly, sectors like trades and professional services tend to outperform restaurants and retail.

The real takeaway, however, is not just about picking the "right" place or business. It's about developing and evolving a strong, profitable, and scalable business model, and ensuring you have enough capital runway to survive the early phases of growth. With real-world insights and practical recommendations, Henry challenges listeners to validate demand, remain adaptable, and avoid falling in love with an idea that doesn't work.

Whether you're in startup mode or reassessing your current business, this episode offers the strategic clarity you need to beat the odds.

This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com


Henry Lopez hosts The How of Business-How to start, run, grow and exit a small business. It’s a practical resource for anyone who wants to move beyond just the idea of entrepreneurship and into the actual work of building something. Each week, the focus is on the tangible steps and decisions involved in a business’s entire lifecycle, from that initial launch through to managing daily operations, scaling up, and even planning a future exit. You’ll hear straightforward conversations that dig into specific topics, breaking down complex challenges into manageable advice. Often, Henry sits down with a small business owner who shares their real-world experiences-the successes and the setbacks-offering a genuine look at what it takes. This podcast is built on the understanding that running a business is a series of learned skills, and it aims to provide those lessons without fluff. Whether you're sketching your first plan on a napkin or steering an established company toward growth, the discussions here are meant to be directly applicable to your own journey. Tune in for a regular dose of clarity and concrete strategies from someone who understands the day-to-day realities you face.
Author: Language: English Episodes: 100

The How of Business - How to start, run, grow and exit a small business.
Podcast Episodes
569 – Big Rocks [not-audio_url] [/not-audio_url]

Duration: 13:36
Big Rocks - a prioritization and time management technique for small business owners. Show Notes Page: https://www.thehowofbusiness.com/569-big-rocks/ If you're always busy but still not making meaningful progress, this…
R245 - Two Responsibilities [not-audio_url] [/not-audio_url]

Duration: 11:00
The two most essential responsibilities every successful small business owner must embrace: making decisions and accepting personal mistakes. Show Notes Page: https://www.thehowofbusiness.com/r245-two-responsibilities/ W…
568 – Own the Spotlight with Linda Ugelow [not-audio_url] [/not-audio_url]

Duration: 44:24
Own the Spotlight - practical strategies small business owners can use to turn public speaking from dread to delight, emphasizing the power of storytelling and authentic communication. Show Notes Page: https://www.thehow…
567 - Focus Without Burnout with Skye Waterson [not-audio_url] [/not-audio_url]

Duration: 41:06
Focus Without Burnout: Smarter Strategies for Entrepreneurs. Show Notes Page: https://www.thehowofbusiness.com/567-skye-waterson-focus-without-burnout/ In this episode of The How of Business, host Henry Lopez is joined b…
566 – Good Debt Bad Debt [not-audio_url] [/not-audio_url]

Duration: 20:11
Good Debt Bad Debt: How to Borrow Strategically in Business. Show Notes Page: https://www.thehowofbusiness.com/566-good-debt-bad-debt/ In this episode of The How of Business, host Henry Lopez reframes how small business…
565 - From Manager to Leader with James Turk [not-audio_url] [/not-audio_url]

Duration: 47:20
Transitioning from manager to leader is more than a title change - it's a mindset shift. In this episode, executive coach James Turk shares insights from his book The Giving Game, including his F45 Playbook for new leade…
R242 - Small Business Systems [not-audio_url] [/not-audio_url]

Duration: 14:51
The essentials of Small Business Systems with host Henry Lopez. Show Notes Page: https://www.thehowofbusiness.com/r242-small-business-systems/ Building a self-managed business starts with solid systems. In this short sol…
564: The Courage Gap with Margie Warrell [not-audio_url] [/not-audio_url]

Duration: 47:24
The Courage Gap - Overcoming fear and self-doubt to take bold action in your business and life. Show Notes Page: https://www.thehowofbusiness.com/564-margie-warrell-courage-gap/ Dr. Margie Warrell joins Henry Lopez to ex…
563: How I Use AI [not-audio_url] [/not-audio_url]

Duration: 28:48
How I use AI (Artificial Intelligence) in my small business. Show Notes Page: https://www.thehowofbusiness.com/563-how-i-use-ai/ AI is no longer optional – it's a game-changer for small business owners. In this episode,…
562: Skills for Success [not-audio_url] [/not-audio_url]

Duration: 58:25
What are the essential Skills for Success in small business and life? Show Notes Page: https://www.thehowofbusiness.com/562-skills-for-success/ In this episode, Henry Lopez and guest co-host David Begin break down the cr…