Updated March 31, 2025
In North Carolina, nearly 80% of newly opened businesses shut down within their first year – a staggering reality for entrepreneurs. These small businesses are the backbone of the state’s economy, employing almost half of the workforce. Over the past 25 years, they have also played a major role in job creation, accounting for two-thirds of all new jobs.
Many of the obstacles business owners face can be overcome with the right preparation. We talked to two experts about how to set your business up for success.
The Problem: Struggling with Sales and Marketing
Many entrepreneurs start with a great idea but struggle to attract customers and generate sales. Without a steady stream of customers, even the best business ideas can fail.
“If you’re a new business, you don’t have any customers. And why would you go out of business? Probably because you’re in negative cash flow,” explained Martin Grzywa, a business strategist who specializes in sales and marketing.
He emphasizes that selling is a skill every business owner needs. “The ability to communicate value is one of the most important skills in business. If you don’t know how to sell what you’re offering, it’s going to be difficult to grow,” he said.
Adam Yohanan, a business lawyer with over six years of experience on Wall Street and in small business consulting, agreed. “Marketing is all about momentum. It takes time to build visibility and trust,” he said. Yohanan pointed out that many business owners expect quick results but underestimate how long it takes to build a strong customer base.
How to Succeed: Business owners should focus on improving their sales techniques, staying consistent with marketing efforts, and finding ways to build trust with customers over time.
The Problem: Poor Business Systems
In the early days of a business, it’s common for owners to handle everything themselves. However, as the business grows, trying to do everything alone can lead to burnout and disorganization.
“A lot of business owners try to do everything at first, and sometimes that’s necessary,” said Grzywa. “But at a certain point, you have to invest in systems or hire help, or else you’ll get stuck in daily operations instead of focusing on growth.”
Yohanan added that many businesses fail because they don’t create processes to keep things running smoothly. “Businesses that lack structure often struggle to grow,” he said. “Without clear systems in place, things can quickly become overwhelming.”
Grzywa also stressed the importance of delegation.
“Scaling a business means learning to let go. If everything depends on you, you don’t own a business – you own a job,” he said.
How to Succeed: Setting up clear workflows, automating repetitive tasks, and delegating responsibilities can help businesses run efficiently while allowing owners to focus on growth.
The Problem: Unrealistic Expectations about Entrepreneurship
Starting a business has never been easier, but that doesn’t mean success will come overnight. Many entrepreneurs have unrealistic expectations about how quickly they’ll become profitable.
“In the old days, starting a business required significant upfront capital and planning. Now, people can form an LLC, create an Instagram account, and start running a business,” Yohanan said.
Grzywa pointed out that social media has contributed to the illusion of instant success. “People see success stories, but they don’t see the years of hard work behind them. Running a business is one of the most rewarding things you can do, but it does take effort,” he said.
How to Succeed: Entrepreneurs should be prepared for challenges, focus on long-term growth, and commit to continuously learning along the way.
The Problem: Underestimating Startup Costs
Financial planning is one of the biggest factors in whether a business succeeds or fails. Many business owners start strong but run into trouble when they don’t have enough capital to sustain operations.
“Your business could be at month 14, and your breakthrough might be coming at month 18. But if you don’t have the capital to sustain it, you won’t make it there,” Yohanan explained.
Grzywa emphasized that financial planning isn’t just about raising money—it’s about managing it wisely. “Plan for the worst-case scenario. Many businesses close not because the idea wasn’t great, but because they didn’t give themselves enough time to grow,” he said.
How to succeed: Entrepreneurs should create a solid financial plan, secure enough funding, and manage expenses carefully in the early stages of business.
The Problem: Entering an Industry Without Experience
Passion is important, but industry knowledge plays a big role in success. Many business owners enter industries they don’t fully understand, which puts them at a disadvantage.
“If you’ve been in real estate for 10 years, it makes sense to open a real estate business. But if you jump into an unfamiliar field, you’re competing against people with decades of experience,” Yohanan said.
Grzywa agreed, adding that the most successful entrepreneurs spend years learning an industry before starting a business. “The best entrepreneurs didn’t just wake up one day and start a company. They learned their craft first, and that gave them the foundation to succeed,” he said.
How to Succeed: Business owners should either have experience in their chosen industry or take the time to gain knowledge before launching a business.
The Problem: Market Saturation and Short-Term Thinking
Some industries, such as e-commerce, coaching and consulting, have become highly competitive because of how easy they are to enter. While competition isn’t necessarily bad, businesses that don’t stand out may struggle.
“There are so many people entering these fields because they seem easy,” Yohanan said.
Grzywa pointed out that businesses focused on long-term goals tend to do better. “Many entrepreneurs chase quick wins instead of building something sustainable. The ones who focus on long-term growth and customer relationships are the ones who last,” he said.
How to succeed: Businesses should research their market, find ways to stand out, and prioritize building strong relationships with customers.
The Path to Business Success
While every business faces challenges, many of these obstacles can be overcome with careful planning, strategy and adaptability.
Grzywa summed it up best: “Entrepreneurship is not for the faint of heart, but it can be the most rewarding journey if you approach it with the right mindset and preparation.”5.
Correction: This story previously stated that Adam Yohanan had over eight years of experience on Wall Street and in small business consulting. The correction is over six years.
