According to lendingfee.com about 20% of small businesses fail in the first year and about 50% fail by the fifth year. 

This shocking statistic tells us that about 50% of small businesses cease to exist after the short run period (about 5-10 years).

While there are various reasons as to why a small business can fail or file bankruptcy, there are a few common trends that I’ve noticed in my endeavors.


For those of you that don’t know, one of my income streams is web design and development. Due to my entrepreneurial mind, I’ve found a way to leverage this skill.

So I offer to build and design websites for small businesses, while doing this I’ve noticed a lot of common trends that lead to unflattering results.

This strange phenomenon has inspired me to create this blog as I know some of you guys wish to venture into entrepreneurship.


Being a 9-5 employee isn’t necessarily a bad thing. I know that goes against the red pill philosophy. As the red pill is about escaping the rat race.

I agree with this concept, however I don’t think escaping the rat race necessarily means being your own boss. 

So if you don’t have the traits to be a successful entrepreneur, by all means feel free to lock down a high earning career.

With that being said, one of the main reasons why small businesses fail is because entrepreneurship is not for everyone.


The fact that you are reading this right now means probably one of two things, your small business has failed or getting there or you want to know what mistakes to avoid prior to getting into entrepreneurship.

Before I begin this presentation though I’ll like to disclaim that I am by no means a startup expert or have a massively successful business.

However due to experiences with one of my business ventures, I’ve noticed these issues so I’ve decided to put you guys up on game.


1.Not Adding Value To The Market

There are 3 ways to have a successful ‘cash cow’ enterprise. 

  1. Fill a Need
  2. Solve a Problem 
  3. Add Value

The easiest approach to undertake is the last one, and this is where a lot of small businesses fail. They simply fail to add value to the market.

Like bro, how many t-shirts are there already available in the market? I think we have enough of those. 

Because of this very reason small businesses fail, a small brand in a generic market like T-Shirts have a lot of larger, value added companies to compete with. Due to this lack of value they lose out. 

2.Incorrect Priorities 

Another reason why small businesses fail is that the entrepreneur usually has twisted priorities. 

What do I mean by this? Well what I’ve noticed is that most small business owners’ main property is to make profit. 

I can’t tell you enough how skewed this motive is. When you put money first, you often make desperate emotional decisions when things don’t go your way financially.

As a small business owner your main priorities should be to:

  1.  Cater to your customers
  2. Build a Brand
  3. Create Employment 
  4. Add Value to The Market 

Making profits can come anywhere after those 4 values.

3.Unrealistic Goals

I’ve seen a lot of small business owners and entrepreneurs say stuff like “I’m going to start my business, make a whole lotta money then buy myself a BMW after the first year of operating”.

Then get upset or disappointed when these goals don’t come to play. Guys I’m all for ambition, aiming big and shooting for the stars. 

But There’s a fine line between ambition and delusion. As a small business owner you need to practice humility and set some more realistic goals.

4.Not Using Your Resources

Guys in the 2000s and early 2010s, to get your small businesses marketed you would’ve had to pay big bucks

Now however, you have many resource tools and marketing channels in the form of social media.

You simply have to use your resources to expand and market your small businesses, the lack of resource optimization is probably why your small business is failing.

5.Lack Of Effort

In my endeavors I’ve noticed time and time again that small business owners are not willing to go the extra mile. 

Let’s put this into some perspective, I’ve seen some entrepreneurs create a business Instagram page, post their products, tell their friends to share the page and hope someone buys.

I’ve also seen entrepreneurs create a business Instagram page, optimize their page, post niche products, shamelessly promote their business everywhere, send dozens of emails a day to reach their market and set up a low cost ad campaign ($7 per week). 

Who do you think is likely to exist and expand in the long term?

6.You Have Too Much Pride

This is another qualitative factor that contributes to why the success rates among small businesses is so low. 

Some of you simply have too much pride. You’re afraid to let everyone see you starting at the bottom, afraid to ask for help, afraid to promote your products or push sales. 

Guys this is a man’s game, you have to put your pride aside and get your hands dirty. Shamelessly ask people to share your product, shamelessly give out free samples, shamelessly self promote. 

There is no pride in business, especially small businesses.

7.You Lack Patience 

This is chess not checkers! For those who don’t get the reference. Checkers is pretty one dimensional and fast paced, chess however is a lot more strategic and complex. Which means it requires more patience.

Business is very much like chess, very dynamic and complex. You can’t come into the game expecting to prosper and rise in a short period of time. 

Patience is a virtue in entrepreneurship, sometimes the best thing you can do ,though it sounds cliche, is be patient and never give up.

8.You Neglect Marketing

As a small business owner, marketing is so key towards generating sales revenue. There are many forms of marketing in the modern day. 

As a small business however I think the best and most effective method of marketing is Social Media marketing. I will write an entire blog discussing this sooner rather than later.

To keep it brief for now, social media marketing involves optimizing and leveraging your social media in various ways to generate traffic and eventually leads. 

I believe this is the most effective marketing technique because MOST PEOPLE USE SOCIAL MEDIA.

9.You Don’t Match Consumer Demand

In some cases I’ve noticed that many people get into entrepreneurship without doing adequate or relevant market research.

If you want to open up a crab salad restaurant in the middle of nowhere, chances are, your small business is going to fail.

This is why it’s so important to assess your market, learn how they react to products and most importantly, give consumers what they want.

10.You’re Always Withdrawing Profits 

Last but not least guys, please stop touching your God damn profits. 

The only way you can grow, expand and increase market share is if you reinvest your profits back into the business. This is where most small businesses fail.

They receive their proceeds and immediately spend it to the ground on unnecessary, frivolous things. This is not financially wise.

If you wish to succeed as a small business, it’s absolutely imperative that you kill your consumer mindset and adopt an investor’s mindset.


And that brings you to the end of this blog, thank you for reading all the way to the end, stay tuned in to redpilltactics.com for new uploads like these every Monday and Thursday! As always leave a comment in the comment section letting us know how you feel about this one and how it benefited you. Also feel free to share the game with a family member or a close friend, don’t be selfish lol. Finally, thank you for your continued support. Peace and love!