10 Survival Strategies for Small Business Owners in 2026 (Real Talk from Someone Who's Been There)

The Reality Check: Why Small Businesses Are Struggling in 2025 and Going into 2026

Have you ever thought about starting your own business? Or maybe you're already running one and wondering if you're going to make it through another year?

You're definitely not alone.

According to the U.S. Small Business Administration, there are over 34.8 million small businesses in the United States right now. That's millions of entrepreneurs chasing their dreams, pouring their savings into inventory, losing sleep over marketing campaigns, and trying to figure out why their conversion rate is stuck at 1.2%.

Here's what I believe after working with hundreds of small business owners: Failure doesn't mean the end. It sharpens your strategy, strengthens your resilience, and if you're paying attention, fuels your future success. The key is learning how to move through setbacks with clarity, support, and an actual plan.

But let me be straight with you: 2026 is going to be brutal. Between tariff uncertainties, government shutdowns now affecting business resources, inflation that won't quit, and AI changing how customers shop, you need more than motivational quotes and hustle culture.

You need systems that work while you sleep and strategies that actually move the needle.

What the Numbers Actually Tell Us (And What They Don't)

According to the latest data from the U.S. Bureau of Labor Statistics:

• 21.5% of businesses fail within their first year
• 48.4% close within five years
• 65.1% shut their doors within 10 years

Now, before you panic, or worse, think "that won't be me", let's talk about eCommerce specifically, because that's where the numbers get really sobering:

In my 15 years of coaching Shopify entrepreneurs, I've seen that the majority of stores never reach sustainable revenue. The ones that do? They're following systems, not just selling products.

They understand that success isn't about having the perfect product, it's about strategic execution, technical optimization, and knowing exactly where to focus when there are 47 things screaming for your attention.

The failure isn't about your products. It's about a lack of strategic execution, technical overwhelm, conversion optimization, and not knowing where to focus.

What Counts as a Small Business Anyway?

In the U.S., the Small Business Administration defines a small business as any company with fewer than 500 employees. That's a massive range, right? Your solo Shopify store selling handmade candles and a tech startup with 400 employees both count as "small businesses."

For context:

• European Union: Fewer than 50 employees
• Australia: Fewer than 15 employees

These definitions matter when you're applying for government support, grants, or trying to understand which resources actually apply to you.

The Biggest Reason Businesses Actually Fail

LendingTree lists 20 reasons why startups fail, but they missed the most important one:

People start businesses for the wrong reasons.

You're good at making soap. You're great at graphic design. You're skilled at fixing things. So you think, "Why am I making someone else rich? I'll start my own business!"

Here's the truth bomb: You've just traded one job for another. Except now you're working 60-hour weeks, you're the accountant, the marketer, the customer service rep, AND the person actually making the product.

Being good at something doesn't automatically make you good at running a business built around that thing.

Strategy #1: Set Goals and Create Your Roadmap (But Keep It Real)

If you don't know where you're going, any road will take you there, and usually, it's the expensive, time-wasting one.

Look, I can't give you an exact percentage of businesses that fail because they didn't plan. However, here's what I know after 15 years in this business: CB Insights found that 42% of startups fail because there's no market need, which means they didn't conduct thorough research. Another 29% simply run out of cash, which means they didn't plan for the reality of cash flow. When you add up all the planning-related failures (no market research, inadequate financial planning, wrong team), it's clear that lack of strategic thinking kills more businesses than anything except cash flow.

Now, let me be clear about something: Your business plan doesn't need to be a 50-page MBA thesis that impresses investors at cocktail parties. That's not what I'm talking about.

What you do need is clarity on:

• Where you're trying to go (your actual goal, not "make money")
• Who you're trying to reach
• How you'll reach them
• What it'll cost to get there

But here's where most business plan advice gets it wrong: You can't predict exactly how many products you'll sell. There are too many variables. Are you advertising? Are you communicating with your customers? Is your store set up properly with trust elements like reviews, clear policies, and professional product photography?

Think of it like planning a road trip. You need to know your destination and have a general route, but you're not going to accurately predict every gas station stop, detour, or spontaneous side trip. Your business plan should be a living document that helps you think strategically, not an impressive binder collecting dust in your office.

Olympic athletes have a goal: get to the Olympics. Then they work backward to create a training plan. You need the same approach. Set the destination, then map the milestones.

Strategy #2: Master Cash Flow or Die Trying

Let me tell you the single biggest killer of businesses: running out of cash.

Not bad products. Not poor marketing. Not tough competition. Cash flow.

You know what the brutal irony is? Most businesses don't fail because they're not making sales, they fail because they run out of money before those sales can sustain them.

You need money to make money. That customer acquisition cost? You pay it up front. That Facebook ad? Due before anyone clicks. That inventory? Paid for before the first sale. That booth at the local market? Deposit due weeks before you make a dollar.

Here's the minimum you need: Six months of operating expenses saved before you launch. Not revenue - expenses. Rent, software subscriptions, minimum ad spend, packaging materials, your own salary (yes, you need to pay yourself because you need to eat!).

The Launch Trap I Learned the Hard Way

Want to know why my Kalahari Gold marula oil store sat in "soft launch mode" for way too long? Cash flow.

I didn't have the budget to properly advertise, so I kept telling myself I'd "do it organically" and "build buzz slowly." You know what happened? Nothing. Because nobody buys products from stores they don't know exist.

This is the hard truth: You either need cash to pay for advertising upfront (and wait for ROI), or you need cash to do events and in-person selling (which requires professional booth setup, marketing materials, samples, signage). Both paths need money before money comes in.

Sometimes the smartest move is running your business as a side hustle until you have the cash flow to go full-time. There's no shame in that. It's strategic. Timing is everything.

The 25% Rule Nobody Follows

Here's a rule I learned from scaling my own businesses to seven figures: At minimum, 25% of your revenue must go back into marketing.

I've had clients push back hard on this. "But Veronica, we spent $500 on Facebook ads and got nothing!"

Here's what they're missing: Today, everything works together. Sales don't come from one channel. They come from multiple touchpoints:

• Social media building awareness
• Email nurturing trust
• Automation following up
• Content establishing authority
• Conversations building relationships
• Retargeting brings people back

You can't turn on one channel and expect immediate results. The customer who bought from your "Facebook ad" actually saw you on Instagram three weeks ago, read your blog post, got your welcome email sequence, and THEN clicked that ad. You just can't see all the invisible touchpoints.

It's an omnichannel game now. Act accordingly.

Strategy #3: Price for Profit, Not Hope

Profit is the entire point of business. Not revenue. Not sales volume. Not "building an audience." Profit.

Profit is:

• The reward for your risk
• What allows your business to grow
• What pays your employees
• What takes care of your customers long-term
• What funds your life

But profit isn't just money in your pocket after you pay bills. Let's define it properly: Profit is what's left after paying ALL your expenses—including your own salary.

The Formula You Actually Need

Before you price anything, calculate your true cost per unit. I'm serious, most business owners skip this and wonder why they're busy but broke.

Cost Per Unit Formula:

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

What to Include:

• Fixed Costs: Rent, utilities, website hosting, Shopify subscription, email marketing platform, design tools
• Variable Costs: Raw materials, packaging, shipping supplies, labor per item, transaction fees, payment processing

Real Example:

Let's say you make 100 handmade candles per month:

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

($1,000 + $500) ÷ 100 = $15 per candle

That means your minimum price needs to be above $15 just to break even. To actually make profit, you need to add your desired margin. If you want a 50% profit margin, you need to charge at least $22.50 per candle.

And remember, this doesn't include your time. If you're spending 40 hours a month making those 100 candles, you're working for free unless you factor in your labor cost.

Strategy #4: Don't Spend Money Just Because It's There

This might sound counterintuitive, but having money in your bank account is one of the most dangerous moments for a business owner.

Money in your account doesn't mean money in your pocket.

I've watched it happen over and over: Someone gets their first profitable month, sees $5,000 hit the account, and immediately starts shopping. New equipment. Website redesign. "Investing in the business." A vacation because "I deserve it after working this hard."

Two months later, they're scrambling to cover basic expenses.

Here's Why This Happens

Excitement clouds judgment. That rush of seeing money in your business account feels like validation, like success, like permission to finally reward yourself. But that money has jobs to do:

• Cover upcoming expenses (subscription renewals, inventory needs restocking)
• Handle taxes (quarterly estimates, sales tax, income tax)
• Build your emergency fund (because emergencies WILL happen)
• Fund next month's marketing (remember that 25% rule?)

The discipline you show with money separates thriving businesses from those that fade away.

How to Stay Grounded:

1. Track every dollar. Use accounting software (I like QuickBooks or Xero). You'll be shocked at how quickly money disappears when you're not paying attention.
2. Separate business and personal finances. Different bank accounts. Different cards. Different budgets. This is non-negotiable.
3. Stick to your business plan. If a purchase isn't on your roadmap, don't make it just because you can afford it today.
4. Reinvest intentionally. Every business expense should help you grow revenue or reduce costs. "It would be nice" isn't good enough.
5. Avoid the "I deserve it" trap. You absolutely do deserve rewards, but not at the expense of your business's stability.

I learned this lesson when I had my recruiting company. We'd close a big placement, see that commission hit, and there was always the temptation to upgrade everything. The businesses that survived were the ones that kept that money working in the business, not the ones that immediately spent it.

Strategy #5: Hire Smart or Stay Solo

Hiring your first employee, or contractor, or VA, or anyone, is one of the most important decisions you'll make. I ran a recruiting company, so trust me when I say: A bad hire can destroy your business faster than you can imagine.

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're going to be working closely with this person toward shared success, so don't rush it, but be picky.

Red Flags I've Learned to Never Ignore:

• Lack of enthusiasm – If they're not genuinely excited about the role or your business during the interview, they won't stay engaged long-term
• No clear examples of success – If they can't talk about past results or how they contributed to a team, that's a concern
• Mismatch in personal values – Check their social media. If their public brand clashes with your company's tone or mission, proceed with caution
• Bad attitude or unprofessionalism – This seems obvious, but I've seen people hire someone despite red flags because they were desperate

Before You Even Post the Job:

1. Write a clear job description. Define responsibilities, required skills, and the personality that would thrive in this role
2. List what success looks like. If you can't picture the outcome, you won't know when you've found the right person
3. Outline how this 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 needs to be professional, courteous, and a strong communicator. No bad attitudes. No drama. No swearing at customers (yes, I've seen it happen).

Be cautious when hiring friends or family. It's incredibly hard to hold them accountable, and it's even harder to part ways if things don't work out. I've watched friendships end over failed business partnerships.

Don't skip references, but dig deeper. Ask former employers not just what they liked, but what they didn't. Everyone has quirks. Your job is deciding what matters and what doesn't.

For example: A candidate might take frequent smoke breaks, but if they're laser-focused and productive when they're working, that might be better than someone who sits at their desk all day scrolling Facebook and looking busy.

The Reality Check:

From my recruiting days, I learned this: The best employees aren't always the ones with the best resumes. They're the ones who show up, care about outcomes, communicate clearly, and align with how you actually work.

And sometimes? The smartest move is staying solo longer than you planned. A mediocre hire costs you money, time, and energy. No help is better than bad help.

Strategy #6: Pay Your Damn Taxes (Especially Sales Tax)

Let's talk about the thing that trips up more eCommerce entrepreneurs than anything else: sales tax.

If you're selling physical products online, sales tax isn't optional. It's not negotiable. It's a legal requirement. And ignoring it will absolutely destroy your business.

Here's Where Entrepreneurs Screw This Up:

Sales tax is a pass-through expense. It's not your money. It's money you're collecting on behalf of the government. But here's what happens:

1. You make a sale for $100
2. You collect $8 in sales tax
3. You see $108 hit your account
4. You have a cash flow gap, so you use that $8 to cover expenses
5. Next month, the gap is bigger, so you use more tax money
6. Six months later, you owe $3,000 in sales tax and you're scrambling

I've been there. I learned this lesson the expensive way.

Here's the truth: If you use your sales tax money to run your business, you're borrowing from the government without permission. And they don't forget.

The Shopify Solution (Use It!):

Shopify now offers a tax savings account where your collected sales tax automatically goes into a separate account. This keeps it out of your sticky hands and makes it doubly hard to "borrow" from.

Turn this feature on immediately. Seriously. Stop reading and do it now if you haven't already.

What You Actually Need to Know:

Sales tax rules are complicated, and they vary by state:

• Origin-based states: You charge tax based on where YOUR business is located
• Destination-based states: You charge tax based on where your CUSTOMER is located
• Nexus: This is the connection that determines where you need to collect tax (physical presence, inventory, employees, or even hitting sales thresholds)

If you're using Amazon FBA or third-party fulfillment centers, you might have nexus in multiple states without even realizing it.

If You're Already Behind (Learn from My Mistake):

Here's something I didn't know: You have to file sales tax returns even if you have $0 in sales. I found this out the hard way when I got hit with penalties.

But here's the good news: The IRS is surprisingly forgiving if you communicate with them.

When I had my tax issues, I was terrified. I thought they'd shut me down. Instead, they worked with me on a payment plan. Yes, I paid penalties and interest. But they were reasonable and worked with me to resolve it.

The worst thing you can do is ignore tax notices. The second-worst thing is using tax money to cover business expenses. Don't do either.

What You Should Do:

1. Use Shopify Tax or TaxJar to automate compliance
2. Consult a qualified eCommerce accountant who understands nexus rules
3. Set up that tax savings account and pretend that money doesn't exist
4. File on time, even with $0 sales
5. If you get behind, communicate immediately – the IRS will work with you

Sales tax isn't exciting. But ignoring it will absolutely tank your business. Stay ahead, stay legal, and treat it like any other non-negotiable expense.

Strategy #7: Pivot with Purpose, Not Panic

By 2026, standing still means falling behind. If you want your business to survive, let alone grow, you need to be ready to pivot.

But let's be clear: Pivoting doesn't mean panicking and changing everything when you have one slow month.

Pivoting means:

• Refining your strategy based on real data
• Expanding your product line to meet customer demand
• Shifting your target audience when you realize you've been talking to the wrong people
• Changing your channels when one platform becomes unreliable

When to Consider a Pivot:

Maybe you launched selling graphic T-shirts to college students, only to realize the market is oversaturated and margins are terrible. That's your cue to rethink and realign.

This is where diversification becomes your best friend:

• Expand your offerings with complementary products your customers are already seeking
• Reach new audiences: kids' products, corporate buyers, gift-givers
• Experiment with seasonal items, bundles, or exclusive limited drops
• Sell on new platforms: Amazon, Etsy, Faire, wholesale to boutiques

You Can Also Pivot Your Marketing:

• Boost your presence on emerging platforms (TikTok Shop, YouTube, Pinterest)
• Launch a YouTube channel or podcast to build deeper connections
• Collaborate with complementary brands for cross-promotion
• Focus on email list building and owned audience instead of rented platforms

The Pivot Decision Framework:

Yes, pivoting feels risky. It's not always easy. But the most resilient businesses are those that evolve intentionally and stay attuned to customer behavior, market shifts, and their own honest assessment of what's working.

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

Strategy #8: Trust Your Gut (But Back It Up with Data)

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 consciously recognize.

While logic and data are essential, some of your best business decisions will come from simply knowing when something feels right, or doesn't.

When Your Gut is Telling You Something Important:

• That client who seems great on paper but something feels off? Trust that feeling.
• The partnership opportunity that looks lucrative but doesn't align with your values? Walk away.
• The strategy everyone swears by but doesn't feel right for your business? Don't force it.

Sometimes your gut is telling you: "This is a great idea... but not right now."

How to Use Your Intuition Without Flying Blind:

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

When something's not working, for whatever reason, look at the whole picture and be brutally honest with yourself. Your gut combined with honest self-assessment is one of your most powerful business tools.

Strategy #9: Never Depend on One Platform

You've heard it before: "Don't put all your eggs in one basket." It's popular because it's true. And in eCommerce? It could save your entire business.

If your entire income is tied to one platform, Amazon, Etsy, eBay, or even your own Shopify store as your only channel, you're taking a massive risk.

Ask yourself:

• What happens if Amazon suspends your account tomorrow?
• What if Etsy changes its fee structure or algorithm?
• What if your main traffic source (Facebook ads, Google, Pinterest) suddenly becomes too expensive?
• What if TikTok gets banned? (Remember that scare?)

A sudden policy change, account suspension, algorithm update, or fee increase could kill your business overnight.

I have seen it several times on various platforms. It can take years to recover. Imagine a whole room full of products that you were selling on Amazon, and then, for some reason, your store is closed. Now you have to start somewhere else to build your business and attract new customers (because on Amazon you do not own your customer data).

Diversifying your sales channels gives you more control and protects your income. You're no longer at the mercy of one platform's decisions.

Smart Ways to Diversify:

• Sell on multiple platforms: Amazon, Etsy, Faire, Walmart Marketplace, your own Shopify site.
• Explore wholesale opportunities or local boutique partnerships.
• Build your own customer base with email marketing (you OWN this list, not Meta or Google)
• Use social selling: Instagram Shopping, TikTok Shop, Facebook Shops.
• Try local markets and events for direct customer connection and immediate cash flow.

Worried About Extra Work?

I get it, managing multiple platforms sounds overwhelming. But tools like Shopify, Sellbrite, and CedCommerce can help you manage inventory, orders, and listings across channels without losing your mind.

The key is building systematically. Don't try to launch on six platforms at once. Master one, then add another. Build your owned channels (website + email list) first, then expand to marketplaces.

Bottom line: Diversification isn't just smart, it's essential for long-term sustainability. Your business deserves more than one basket.

Strategy #10: Stop and Actually Smell the Roses

When was the last time someone reminded you to slow down? To actually stop and appreciate where you are?

At its heart, this old saying is a simple reminder: 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. Hustle culture tells us we should be working 24/7, that rest is for the lazy, that if we're not constantly grinding, we're falling behind.

That's complete BS.

When we rush through our days without pause, we miss the joy in everyday moments. We miss the reason we started this journey in the first place.

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. Allowing yourself to feel proud, present, and even playful sometimes.

Self-care isn't selfish. It's sustainable.

The truth is, self-care gets pushed to the bottom of our to-do list. It feels 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 week-long vacation to reset. Sometimes all it takes is a moment:

• A quiet cup of coffee without checking your phone
• A walk outside without listening to a podcast
• A real laugh with someone you love
• A deep breath and telling yourself, "You're doing great"
• Sitting on your deck (or your yacht 😉) and just being present

This life is happening right now. Don't miss it because you were too busy building something to enjoy.

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

But it also means remembering why you started. And sometimes, that means giving yourself permission to pause, breathe, and celebrate how far you've already come.

The Bottom Line

Look, I'm not going to lie to you: 2026 is going to be tough. Tariffs are making inventory more expensive. Government uncertainty is affecting lending and support programs. Inflation is still squeezing margins. AI is changing how customers shop. The platforms you relied on last year might not work the same way this year.

But here's what I know after building a 7-figure business and coaching dozens of entrepreneurs through the hard stuff:

The businesses that survive aren't always the ones with the best products or the biggest budgets.

They're the ones that:

• Have clear goals and adapt their plans as they learn
• Master cash flow and treat it like oxygen
• Price for profit, not hope
• Keep their tax money separate and sacred
• Hire slowly and carefully (or stay solo when that's smarter)
• Diversify their channels and never depend on one platform
• Trust their gut but back it up with data
• Show up consistently even when it's hard
• Remember to breathe and enjoy the journey

If you're struggling right now, you're not alone. If you're behind on taxes, you're not the first. If your cash flow is terrifying, join the club.

The difference between businesses that fail and businesses that make it is usually just one thing: They kept going. They got honest with themselves, adjusted their strategy, and kept showing up.

So keep going. Build smart systems. Ask for help. Pay your damn taxes. And remember why you started this crazy journey in the first place.

Your business should fund your life, not consume it. Now go make it happen.

—Veronica

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