Chester Crawford, an enrolled agent and business owner, points to financial literacy and strategic relationship building as the primary factors distinguishing thriving small businesses from those that close within five years. His insights come as U.S. Small Business Administration research shows approximately half of new small businesses fail by their fifth anniversary.
“The main reason probably would be finances and then financial knowledge would be the main thing. And then of course, marketing of your product,” Crawford said during a recent interview.
Crawford highlights that successful small business operations require a multifaceted approach combining financial management with targeted outreach efforts.
“The main thing is getting the word out, getting the word out to the correct niche market that you going to be working with. Telling the story over and over again, letting people know what you do and then having the finances in order to target to people that you wish to target, and then having the financial knowledge to make it continue,” Crawford explained.
For established businesses, Crawford notes that long-term success stems from cultivating lasting connections within the community.
“If you’re talking about the established businesses, you basically talking about relationships that created and continuing to pond over relationships and create generational relationship off initial relationships of support businesses, all about relationships,” Crawford said.
As an IRS enrolled agent and with at least 24 hours of CE per year, Crawford underscores the importance of staying current with changing regulations and market conditions.
“Knowledge, of course, is key. Being an IRS agent, I have to take at least triple hours of CE every year,” Crawford stated.
Access to capital remains a fundamental challenge for small businesses seeking long-term viability. Crawford recommends developing multiple financial relationships to ensure adequate funding sources.
“Of course, cash is always key to, finances is always king,” he said. “So you have to have to create those relationships, whether it’s banking relationships or whether it’s family relationships or outside vendors.”
Beyond financial considerations, Crawford identifies character and reputation as the ultimate determinants of business success.
“The main thing I found in business, of course, business being what I do, being a so project, it’s all about character and credibility and reputation,” Crawford concluded.
