With survival rates so low, it doesn't exactly fill prospective entrepreneurs with the confidence to get out there and realise their dream.
But that doesn't mean you have to be a part of the statistic. If anything, it's an opportunity to grab the bull by the horns and develop a winning strategy to get your product or service on the map.
Tom Applebee and Graeme Firth, co-owners of mobility start-up Fenetic Wellbeing, share their experiences and most practical advice to start-up success.
Understand your niche
According to Tom, the mobility industry that they wanted to enter would typically fall into two groups. Those who charged high prices in order to extort the elderly or vulnerable, and those who charged prices so low that there was almost no customer service or aftersales care.
It soon became clear that there was an opportunity to inject fun, personality, and simplicity into what some would consider a grey and spiritless industry.
Equipped with encyclopaedic product knowledge, a raft of quality products, and robust aftersales care strategy, their light-heartedness and Yorkshire wit would prove a refreshing change for people looking to get moving again.
To them, it wasn't about being ground breaking, but about understanding the market and adapting the business strategy accordingly.
Being better - being different
When it comes to business start-ups, there is a lot of pressure to be different. And rightly so! Innovation is important for survival, but it does not mean that you must reinvent the wheel for every facet of your business. Sometimes it's about simply trying to be better.
Tom and Graeme realised that people don't exactly enjoy buying wheelchairs, Zimmer frames, and mobility scooters either for themselves or their aging parents. They simply wanted the whole process to be easy and hassle free.
You find the product you want, with the support of informative content and a reliable customer service team. You make a purchase, and you receive free delivery and 12-month warranty. That's on every product, all of the time. What could be simpler?
Enjoy the ride
It doesn't matter how good your idea is, if you can't find enjoyment between the ups and downs of starting a business, you will quickly burn out and begin to question why you even started.
For Tom and Graeme, Fenetic Wellbeing started in an attic, where they would negotiate accounts with suppliers, while Graeme listed products online from a laptop.
The attic became a garage, and the garage became a caravan (believe it or not) packed with printers and laptops. When the time came to rent a warehouse, they simply wheeled the caravan and its contents to the warehouse where it still stands to this day.
Of course this was not achieved overnight. A good sense of humour even in the darkest hours would be the only constant to help the two pull through.
To summarise, take a look at the industry around you in detail. Delve into the mind-set of your customers. What do they really want? Can you offer it? Don't focus every effort on innovation. Sometimes, to simply be better is just as effective.
And last but not least. Love what you do. Find enjoyment in the ride, because happiness and success is a journey, not a destination!
