Why Most Businesses Fail in the First 5 Years (And How to Make Sure Yours Doesn’t)

}

May 13, 2025

l

becca.jermy2@gmail.com

In the first year of business, 20% of small businesses fail. After five years, 50% are gone.

But why?

Most businesses pour all their time, energy, and money into getting new clients. Sale, sale, sale. 

Missing the real issue: client retention.

You can keep hunting for new clients until the cows come home, but if you want a strong, sustainable business, you need to build relationships with the clients you already have. And here’s a little secret that most business owners don’t realise (or don’t want to acknowledge):

If you want long-term success, you need to work on yourself and how you authentically connect with people.

Lucky for you, I’m here to give you five places to start—actionable steps you can take today to build a business that lasts. And you know what that means?

More impact, more freedom, and creating your legacy.

Are you ready to dive in?

1. The #1 Mistake That Leads to Business Failure

I remember being a loyal customer of Three. Ten years I’d been with them. Their service was great, their signal always worked (which, you know, is important for a phone company).

Then, my contract came up for renewal. I’d done my homework and found a £16/month deal. So, I rang them up to switch.

Do you know what they said?

“Oh, that’s for new customers. It’s £18/month for existing customers.”

I am now with Tesco Mobile.

It baffled me.

YES, focus on getting new clients in.

YES, use incentives if you want.

BUT if you treat new clients better than your existing ones, you’ll lose them. And then what happens? You have to keep finding more clients.

Exhausting.

This is the reality most businesses face because they focus on getting clients, not keeping them.

  • ENERGY wasted making new videos for social media
  • MONEY spent on paid ads
  • TIME spent messaging strangers

…all leading to inconsistent revenue and unnecessary stress.

Shift your focus: Build relationships, not just sales.

  • Create, build, and nurture relationships with existing clients.
  • Prioritise long-term connection over short-term transactions.
  • Make clients feel valued, and they’ll naturally start referring others to you.

Mindset shift: Stop obsessing over getting clients. Start focusing on keeping them.

People buy from those they trust. Build a relationship, not just a transaction. 

What can you take on that would create deeper relationships with your clients?

2. Retention Starts With You: The Mindset of a Business That Thrives 

When I first started my business, I was a completely different person.

I worried about competition. If a client left for another gym, trainer, or class, I panicked—”What if everyone leaves?”

I spent so much time convincing people to work with me that it felt exhausting. I hated it.

All of this was just noise. And that noise was stopping me from connecting with my ideal clients.

Everything changed when I started working on myself.

Clients want to feel valued, heard, and connected to YOU. They chose you for a reason. They want to work with you—not just for the service, but because of the experience.

That’s why retention isn’t just about what you do. It’s about how you show up.

How do I know this?

In the last 4 years I’ve retained 90% of my client base.
Some even returned to work with me online, even though their preference was in-person.

This is what I learned:

How YOU are reflects how your business performs.

Ask yourself:
Do I listen to people fully, even if they don’t buy from me?
Am I showing up consistently and creating trust?
Am I investing in my growth to be a better business owner?

3. How to Build Relationships That Keep Clients Coming Back 

I keep saying, “build strong relationships,” but how do you actually do that?

Prioritise Connection Over Transactions

  • Treat everyone like your next long-term client.
  • Check in: Do they know where to park? What to bring? What to expect?
  • Ask: Why is their goal important to them?
  • Follow up: They missed last week because their daughter was sick? Ask how she is.

Constantly provide value beyond what you promised. 

How else could you educate, inspire and support them?

Create a Client Experience That Feels Personal

Make every interaction with them feel personal. 

Basically, just be yourself. Remember, they came to YOU to do business, not “some guy down the road”, YOU. 

Take note of personal details—ask about family, pets, special occasions.

Be interested, not interesting

When you’re listening to what they say, it can also help you provide more value to them. 

Be Consistent & Reliable

Do you want to stand out from other businesses? This is for you. 

Make a promise, and make sure you honour it. 

You’ll be seen as something that other people trust and want to do business with. 

I promise you, flexing this muscle will put you above the rest.

4. The Secret to Longevity: Boundaries & Energy Management

Exhaustion is one of the biggest reasons businesses fail. 

You can’t be there for your clients if you’re running on empty.

When the majority of your clients turn up late, haven’t paid and miss multiple sessions in a row… it’s draining. 

Create boundaries and protect your energy.

Create structure around your availability. Set work hours and stick to them.
Say NO to draining clients. Focus on people who energise you.
Look after yourself. Are you exercising? Eating well? Sleeping enough?

Take action today to fill up your cup. Start attracting the clients that align with your missions and values. 

5. Your Business Will Last If You Focus on Trust, Not Just Growth

Business success isn’t about how many clients you get; it’s about how many you KEEP.

For 10 years, I’ve learned to focus on client retention, not just numbers.

Yes you need new clients, but keeping clients will give your business sustainable success.

If you can master:
Attracting the right clients
Nurturing those clients
Turning them into raving fans

…They’ll do the marketing for you.

This is the best business strategy there is.

Final Thought: The World Needs More Businesses Like Yours

The world needs authentic, relationship-driven businesses like yours.

Are you ready to build a business that lasts?
Are you ready to stop chasing clients and start keeping them?

If so, let’s connect.

0 Comments