Why Most Small Businesses Fail (And How to Fix It)

Small businesses face significant challenges due to the complexity and capital intensity of logistics, particularly in the context of growing e-commerce. The speaker's company addresses this by aggregating demand and simplifying the logistics stack through hyperlocal micro-warehousing, creating a more accessible and supportive infrastructure for small businesses. This approach, driven by a mission-oriented culture, aims to foster the growth and success of small businesses, a critical segment of the US economy.

E-commerce Logistics Challenges

• 00:00:00 E-commerce growth necessitates efficient logistics, which presents a major obstacle for small businesses. Small businesses lack the resources to handle the complexity and capital requirements of logistics, which can hinder their ability to compete in the growing e-commerce market. This is a significant threat to their long-term survival and success.

Micro-Warehousing Solution

• 00:03:30 The speaker's company tackles these challenges by creating hyperlocal micro-warehousing facilities, similar to ‘ghost kitchens’ but designed for logistics. These facilities provide small businesses with access to warehousing, fulfillment, and carrier services. The company has partnered with institutional real estate investors to acquire and operate these facilities across the US.

Market Size and Growth

• 00:02:36 The US small business e-commerce market is substantial, currently valued at $900 billion and projected to reach several trillion dollars over the next decade. E-commerce in the US is expected to triple in the next 10 years, with Amazon currently dominating the market. The speaker's company aims to provide logistical support for the other small businesses struggling with e-commerce.

Company Mission and Culture

• 00:06:14 The speaker highlights the company's mission-driven culture, inspired by the stories of the entrepreneurs they serve. They emphasize the importance of focusing on difficult, yet impactful problems within the small business space. This approach creates a strong company culture that values solving challenging problems and supporting small businesses.

Doing Hard Things

• 00:08:53 The speaker advocates for tackling difficult challenges in business, acknowledging that not all ventures are easy or profitable. He emphasizes that the joy and benefit of doing difficult things lies in the potential to solve complex problems and help others. This commitment to difficult, impactful work shapes their approach and their team's focus.