Are you thinking about starting a business in hopes of making more money? You might want to think again.
According to a report from Skynova only 37% of entrepreneurs are netting enough money to pay themselves a suitable salary.
This is based on the results from a survey that asked 976 entrepreneurs and small-business owners whether their profit margins have taken a hit over the last few years. Among the respondents, 441 were men, 514 were women, 14 identified as nonbinary, and seven preferred not to provide a gender. The respondents ranged in age from 18 to 76 years old with an average age of 40.
There was a wide range of experiences recorded but the majority of respondents said they’ve faced significant challenges staying afloat. According to the report, less than half (44%) saw consistent revenue, and approximately one-third were earning enough revenue to grow the business. Additionally, about 86% of entrepreneurs flat out said they’ve been struggling when asked to explain how they’ve been faring.
The bulk of respondents stated they were facing challenges with getting the word out about their products and/or services—and often had issues finding the right marketing strategy that worked for them.
Conversions, which is the term marketers refer to as the second stage of the consumer capturing process, is what really translates into making more money. Less than half of small businesses surveyed were putting consistent effort into their conversions, and only 29% were spending money to improve their conversions. When it came to the third step of the funnel, retention, and re-engagement, businesses allocated a similar amount of time and money as they did to conversions.
The data undoubtedly showed that those who invest their money as well as their effort into the sales funnel were more likely to say they’re generating enough sales. That said, only 20% of entrepreneurs put consistent effort into all three funnel stages, and only 9% were investing capital in all of them.
But, on a positive note, another 73% reported they felt confident in their ability to generate the sales their business needed.