How to Keep Your Business Alive in 2025: 10 Rules for Survival

Have you ever considered starting your own business? Or do you have your own business?

You’re not alone. According to the latest U.S. Small Business Administration data, there are over 33 million small businesses in the United States today. With millions of entrepreneurs chasing their dreams, some will inevitably struggle or even fail.

I’ve worked alongside hundreds of small business owners, and I’ve seen it all—the wins, the setbacks, the pivots, and the burnout. But here’s what I believe: Failure doesn’t mean the end. It often sharpens your strategy, strengthens your resilience, and fuels future success. The key is learning how to move through it with clarity, support, and a plan.

According to the latest data from the U.S. Bureau of Labor Statistics, supported by industry insights, approximately 20% of small businesses fail within their first year, and about 33% close within two years. While these numbers have held steady over the past few years, new data specific to eCommerce reveals an even more sobering reality:

Over 80% of Shopify stores fail, most often due to a lack of strategic execution, technical overwhelm, and low conversions, rather than poor products.

Only 10% of Shopify stores reach six-figure annual revenue, highlighting the critical need for clarity, structure, and marketing expertise from the start. 

For new business owners, especially in the eCommerce space, the key to success isn’t just having a great idea—it’s about building smart, launching confidently, and making data-driven decisions early on.

What Counts as a Small Business in 2025?

In the United States, the Small Business Administration (SBA) defines a small business as any firm with fewer than 500 employees. This broad definition means that even many fast-growing, high-revenue startups technically fall under the “small business” category.

However, the definition of a small business varies globally:

• In the European Union, a small business is typically defined as one with fewer than 50 employees.

• In Australia, a business with fewer than 15 employees qualifies as a small business.

These distinctions matter when comparing global markets, accessing government resources, or applying for funding or grants. Understanding how “small business” is defined in your region can affect your eligibility for support, compliance rules, and tax benefits

The Growth of Small Business

https://www.bls.gov/bdm/bdmage.htm

This timeline measures entrepreneurialism in the United States by showing the number of businesses that were less than one year old and still in their start-up phase, from March 1994 to March 2023. In March 2023, there were around 1.05 million businesses that were less than 1 year old, a slight decrease from the year prior, when the number was around 1.07 million. (Statista.com)

20 Reasons Why Startups Fail

This statistic does not mean that your business will fail, but rather look at it in a positive way. By knowing what could go wrong, you can create a better business strategy that will overcome potential risks that might come your way.

Lending Tree has 20 reasons why startups generally fail. But there is another reason they have failed to mention. 

https://www.lendingtree.com/business/small/failure-rate/

The biggest reason for failure is WHY we start our business.

Most people start a business because they are good at something, whether they are plumbing, technology, or arts and crafts.

Or you have a job and decide, 'You know what, I'm doing all the work, so I can run my own business.' 

But in reality, all you are doing is exchanging one job for another. 

10 Ways to Survive Your Small Business

In my experiences with small businesses, there are always ways to rally from a failure. I believe that our failures strengthen our ability to overcome obstacles in the future.

1. Have goals and a business plan

If you don't know where you are going, how are you going to get there?

Do you want to know what caused the majority of businesses to fail in 2022? I’ll tell you. Lack of goals and a business plan! A survey was carried out by researchers in 2018 and they found that 68% of businesses failed in 2022 because they did not have a goal or plan of action.

When you start out as an entrepreneur, it's essential to consider your goals. You need to know where you are going and how you want to get there.

If you plan a road trip, you make sure you are on the right roads, and most of the time, you have an end goal in mind.

Olympic athletes are a great example. Their goal is to get to the Olympics, and they have a plan of action on how to get there.

You need a goal, and then plan accordingly to achieve it. This is your roadmap to follow, which will help you think clearly about the actions you need to take for your business and identify the gaps you need to fill.

2. Make sure you have a cash flow

The number one reason businesses fail is that they run out of cash. If you do not have sufficient cash flow to support your business, it will likely fail. It is essential to ensure that you have sufficient funds to sustain your company for at least six months.

To have a successful business, you need to manage your cash flow effectively. Unfortunately, you need money to run your business, and this need arises before you make a profit.

You never know when an emergency is going to come up, and it's best if you are prepared for it instead of borrowing money from someone else or worse yet, having no money at all when an emergency happens!

It takes money to grow your business because it takes time to encourage people to buy your products.

3. Make sure you earn a profit

Pricing your product correctly is priceless!

Profit is the reward for risk. Profit is what makes it all worth it

Profit is also the purpose of business. It's what allows a business to grow and expand, pay its employees, and take care of its customers.

But profit is not just about money in your pocket. We need to define profit a bit more broadly for our purposes here. Let's start with this definition: Profit is the amount of money left over after paying all your expenses.

Before you price your product, ensure one thing: PROFIT. While that may sound obvious, many small business owners miss the mark simply because they don’t account for all their costs.

To calculate your true cost per unit, follow these steps:

1. List every fixed and variable expense involved in producing your product or delivering your service. This includes:

• Raw materials
• Packaging
• Shipping and handling
• Labor (including your own time)
• Any other direct production costs

2. Don’t overlook your indirect expenses - things like rent, utilities, software subscriptions, and admin support. These often fly under the radar but can quickly eat away at your profit margins.

Knowing your full cost per unit is the foundation of smart, sustainable pricing. Without it, you’re just guessing—and guessing can get expensive.

Cost Per Unit Formula

To find your true cost per unit, use this formula:

(Total Fixed Costs + Total Variable Costs) ÷ Total Units Produced = Cost Per Unit

What to Include:

• Fixed Costs: Rent, utilities, website hosting, software tools, salaries (if consistent)
• Variable Costs: Raw materials, packaging, shipping, labor per item, transaction fees

Example:

Let’s say you produce 100 handmade candles per month.

• Fixed Costs = $1,000 (rent, tools, utilities)
• Variable Costs = $500 (wax, jars, labels, shipping)
• Total Units = 100 candles

($1,000 + $500) ÷ 100 = $15 per unit

Your minimum price per candle should start above $15 if you want to make a profit—ideally factoring in your desired profit margin.

Here is a link to a break-even analysis worksheet you can use.

4. Don't spend your money

Why Having Money Can Still Get You Into Trouble

It might sound counterintuitive, but having money—especially for the first time in your business—can lead to some of the worst financial decisions entrepreneurs make. It’s exciting to see cash in the bank, and that excitement can quickly spiral into impulsive spending. Whether it’s new tools, a shiny upgrade, or even a “well-deserved” vacation, it’s easy to justify purchases in the moment. But here’s the truth: money in your account doesn’t mean money in your pocket.

One of the most common pitfalls business owners fall into is spending as soon as revenue or a loan arrives at the bank. The flow of cash can feel like freedom, but if you’re not disciplined, it becomes a liability. Profitability isn’t about how much you make - it’s about how much you keep.

Here’s how to stay grounded:

• Track every dollar. Know where your money is going and why. You’ll be surprised how quickly it disappears when you’re not paying attention.
• Separate business and personal finances. Use different bank accounts, different cards, and different budgets. This is non-negotiable.
• Stick to your business plan. If you don’t have one, it’s time to make one. A clear financial roadmap helps keep emotions out of your decisions.
• Reinvest intentionally. If you’re spending, make sure it’s helping your business grow, not just making you feel good in the moment.
• Avoid the “I deserve it” trap. Yes, you’ve worked hard, but long-term stability is worth more than a short-term reward.

Bottom line: discipline with money is what separates thriving businesses from those that fade away. Respect the numbers, and they’ll work for you.

5. Hiring Smart: How to Avoid Costly Mistakes

Hiring the right person is one of the most important decisions you’ll make as a business owner. This isn’t just about finding someone with the right skills—it’s about finding someone who aligns with your goals, values, and company culture. You’ll be working closely toward shared success, so don’t rush the process, but be picky.

Not everyone will be a perfect fit, and that’s okay. But there are a few red flags you should never ignore during the hiring process:

Red Flags to Watch Out For:

1. Lack of enthusiasm – If they’re not genuinely excited about the role or your business, they won’t stay engaged long-term.
2. No clear examples of success – If they can’t talk about past results or how they contributed to a team, that’s a concern.
3. Mismatch in personal values – If their public brand (including social media) clashes with your company’s tone or mission, proceed with caution.

Before You Post the Job:

Start with clarity:

• Write a clear job description. Define responsibilities, required skills, and the kind of personality that would thrive in the role.
• List what success looks like. If you can’t picture the outcome, you won’t know when you’ve found the right person.
• Outline how the role aligns with your broader objectives. This gives context for both you and the candidate.

 During the Hiring Process:

• Be thoughtful about customer-facing roles. Anyone interacting with your clients should be professional, courteous, and a strong communicator—no bad attitudes, no swearing, no drama.
• Be cautious when hiring friends or family. It’s hard to hold them accountable, and it's even harder to part ways if it doesn’t work out.
• Don’t skip references—but dig deeper. Ask former employers not just what they liked, but what they didn’t. Everyone has quirks. It’s your job to decide what matters and what doesn’t.
• Example: A candidate might be a smoker who takes regular breaks, but if they’re laser-focused and productive when they’re at their desk, that might be a better hire than someone who sits at their computer all day scrolling Facebook.

6. Don’t Skip This: Pay Your Taxes - Especially Sales Tax

As an online retailer, one of your most important responsibilities is collecting and paying sales tax. If you’re selling physical products, sales tax isn’t optional—it’s a legal requirement.

But it’s not always straightforward.

You must collect and pay sales tax in the state where your business is located. That part is simple. However, things get more complex when you sell across state lines. Whether or not you owe sales tax in other states depends on something called nexus—a connection to that state based on factors like inventory, employees, or even the number of sales.

• Origin-based states require you to charge sales tax based on the location of your business.
• Destination-based states require you to charge tax based on the location where your customer resides.

And if you're using a third-party fulfillment center, such as Amazon FBA, you may have nexus in several states without even realizing it.

The truth is, sales tax laws vary widely by state, and they’re always evolving. That’s why it’s crucial to:

• Stay informed about where you have nexus
• Use a tool like Shopify Tax or other softaware to automate compliance
• Consult a qualified accountant who understands ecommerce tax laws

Sales tax may not be the most exciting aspect of your business, but ignoring it can result in significant penalties. Stay ahead, stay legal, and treat it like any other non-negotiable part of doing business.

7. Pivot with Purpose: Diversify What and Where You Sell

The business landscape is evolving rapidly, and by 2025, remaining stagnant will no longer be an option. If you want your business to grow—or even survive—you need to be ready to pivot.

Pivoting doesn’t just mean changing direction. It can mean refining your strategy, expanding your product line, or shifting your target audience. For example, maybe you launched your store selling graphic T-shirts to young adults, only to realize that the market is oversaturated or not profitable enough. That’s your cue to rethink and realign.

This is where diversification becomes your best friend.

• Expand your offerings by adding new products or complementary accessories that your customers are already seeking.
• Reach new audiences—launch a product line for kids, parents, or even corporate buyers.
• Experiment with seasonal items, bundles, or exclusive drops.
• Consider selling on new platforms, such as Amazon, Etsy, Faire, or even wholesale.

You can also pivot your marketing strategy:

• Boost your brand presence on emerging platforms like TikTok or Pinterest.
• Launch a YouTube channel or podcast to build deeper connections with your audience.
• Collaborate with other small brands for cross-promotions or product bundles.

Yes, pivoting can feel risky, and it’s not always easy.  However, the most resilient businesses are those that evolve intentionally and remain attuned to customer behavior, trends, and market shifts.

Stay agile. Stay curious. And don’t be afraid to reinvent when the moment calls for it.

8. Trust Your Gut – It’s One of Your Greatest Business Tools

Starting a business is a leap of faith. You won’t always have all the answers, but what you do have is your instinct, and learning to trust it can make all the difference.

That gut feeling? It’s not just emotion. It’s your subconscious drawing on experience, observations, and patterns you may not even realize you’ve noticed. And while logic and data are essential, some of your best business decisions will come from simply knowing when something feels right or doesn’t.

We’re often told to power through uncertainty, push past doubt, and stay strong. But when your gut is sending a warning signal, pause. Listen. You might be sensing something your head hasn’t processed yet.

Whether it’s turning down a questionable client, holding off on a partnership that feels off, or walking away from a tempting opportunity that doesn’t align with your values, those moments matter. And they often separate wise, sustainable growth from painful setbacks.

Here are a few ways to harness your intuition without flying blind:

• Give yourself time to reflect. Not every decision needs to be made instantly.
• Talk it out. A trusted mentor, advisor, or peer can help you sort instinct from impulse.
• Pay attention to discomfort. It’s usually trying to tell you something important.
• Balance gut with facts. Let your intuition guide you to the right questions, then back it up with data.

In the end, your intuition is one of your most powerful tools, as long as you’re willing to listen.

9. Don’t Rely on One Platform: Diversify Your Marketplaces

You’ve probably heard the saying, “Don’t put all your eggs in one basket.” It’s popular for a reason—because it’s true. And when it comes to your e-commerce business, it couldn’t be more relevant.

If your entire income is tied to a single platform—whether it’s Amazon, Etsy, eBay, or even your own Shopify store—you’re taking a big risk. A sudden policy change, account suspension, algorithm update, or unexpected fee hike could put your business in jeopardy overnight.

Ask yourself:

• What would happen if Amazon suspended your account tomorrow?
• What if Etsy updated its terms or increased fees?
• What if your main traffic source dried up?
• Diversifying your sales channels helps protect your income and gives you more control over your business. You’re no longer at the mercy of one marketplace’s decisions.

Here are a few smart ways to diversify:

• Sell on multiple platforms like Amazon, Etsy, Faire, Walmart Marketplace, and your own Shopify site.
• Explore wholesale opportunities or local marketplaces.
• Grow your own customer base with email marketing and social selling through Instagram, TikTok, and Facebook Shops.

Worried about the extra workload? Don’t be. Tools like Shopify, Sellbrite, and CedCommerce can help you manage inventory, orders, and listings across multiple channels with ease.

Bottom line: Diversifying isn’t just smart—it’s essential for long-term sustainability. Your business deserves more than one basket.

9. Take a Moment - Stop and Smell the Roses

When was the last time someone reminded you to stop and smell the roses? It’s a phrase we’ve all heard, probably more times than we can count. But how often do we actually do it?

At its heart, this old saying is a simple reminder: slow down and appreciate the little things. It’s okay, essential, even, to step out of hustle mode and take in the beauty of the moment. Life isn’t just about checking off tasks or chasing goals. It’s about the journey, not just the destination.

We live in a world that praises productivity and glorifies being busy. But that constant grind can blur the very reason we started this journey in the first place. When we rush through our days without pause, we miss the joy that exists in the everyday moments.

So let me ask you something, are you taking care of yourself?

Not just eating, sleeping, and showing up, but really taking care of yourself. Checking in. Breathing deeply. Allow yourself to feel proud, present, and even playful from time to time.

The truth is, self-care often gets pushed to the bottom of our to-do list. It can feel like just another task we don’t have time for. But here’s the thing: when we’re burned out, stressed, or stuck on autopilot, we’re not really living - we’re just surviving.

You don’t need a vacation to reset. Sometimes, all it takes is a moment:

• A quiet cup of coffee without distractions
• A walk without your phone
• A laugh with someone you love
• A deep breath and a “You’re doing great” reminder to yourself

Because this life? It’s happening now. Don’t miss it.

Remember, the right path isn’t always the easiest one. Being an entrepreneur means embracing risk, staying resilient through the challenges, and showing up every day because you believe in what you’re building.

EXCITING NEWS:

If you want to learn more about Ecommerce and Shopify, check out my new 2025 books on my website: www.veronicajeans.com

You can sign up for a store right here: Get Your Shopify store!