Why is HR important for small businesses?

As a rule, nine out of ten startups fail, under 50% of them make it to their fifth year, and 20% fail in the first year. This is a hard and bleak truth, but it makes most entrepreneurs think about how not to get into the mentioned failure statistics. Besides, the failure rate often increases progressively over time. 

A business owner might think their startup is going to hit the big time if it’s been around for a couple of years. But the reality is that a small business can go under quickly.

What’s the reason? Well, you might already know that money-related issues are the most common causes, but not the only ones. Since employees are the most valuable resource of any company, they require proper attention and management. However, startups often have so many concerns to deal with that they forget about their human resources. And that’s when there’s no way back if they don’t tackle this issue right away.

Refusing to take HR seriously is among the top reasons that lead startups to failure. But the small businesses that bring in HR expertise the moment they are ready to turn their ideas into reality are the first ones to go public, get the first-to-the-market advantage, and are the least likely to fail. 

LaunchedHR™ simplifies the HR startup process. Our affordable, straightforward packages provide peace of mind so business owners can sleep at night.