Why do most businesses fail in the first year? Um, a lot of reasons, Um, one of the biggest things is that it's it's called familiarity. And so people tend to buy brands that they trust and recognize. They don't even have to be necessarily that good of quality. As long as they have heard the name enough and they recognize it, they're more likely to buy it just by exposure. Um, and so when you are starting a business, you don't have that benefit. You don't have those. You don't have loyal customers, you don't have any good reviews.

It's just a new business that people don't recognize. They have been exposed too much. And so the bigger companies, they just always will have the advantage of exposure of familiarity. Um, also a lot of people they think they found a niche, and they think that it's it's just a new thing and they're going to have a client base, and it just there isn't the interest that they expected, and that's very common as well. Um, also, a lot of things can just go wrong, and there's not. There's just not a lot of margin for error in a new business.

If it larger businesses that are that are more established, they can take a larger loss and still be able to keep running to have time to recover that loss With a new business, usually especially with first time entrepreneurs, um, they're just There's little capital. There's not enough capital to keep it running after after a loss occurs. It was probably too big. Factors is exposure. Um, there's just There's nobody familiar with the product and and low capital meaning a higher a smaller margin for error before the business fails.