Essential Assets You Need to Have by the Fifth Year of Your Business

The fifth year of every small business is one of the most crucial. At this point, you can now determine whether if you’re going to make it up to your tenth anniversary or abandon ship before then. It is the year when you need to give it your all and when your assets are most valuable and essential in the growth of your business.

About half of small businesses would have failed at this point. The remaining half is between two rough roads ahead. The first road is a long and winding road to success, and the other is the road to inevitable failure. If you consider the odds, about 75% of small businesses fail by their fifth year, the other 25% don’t know it yet. However, you can avoid this by getting the necessary assets you need to keep your business afloat and ready for growth. Here are some essential assets you need to have by your fifth anniversary.


You’re going to need your investments the moment you reach the fifth year of your business. This is your plan B if things go south real fast. Investments are going to be your lifeline if this happens. Here are some investments you need to start investing in right now.


Gold is a decent investment venture that is stable and is known to give you your return on investment by the third or fourth year. If you started investing in gold during the first few of your business, you would have gotten a sizable amount by your fifth year. This asset can single-handedly pull your company from the brink when utilized well.


Stocks are more unstable than gold, but the ROI can be much higher and much bigger. If you know someone who can manage your stocks, you shouldn’t miss out on the opportunity of investing in them. A couple of stocks are a good investment that can easily be converted to cash. If you want a slower and less risky stock, go for index funds.

High Yield Savings Account

A high yield savings account is going to be essential for your company. It won’t be the investment that can save it single-handedly like gold, but it’s a good investment if you want to secure your funds for the future.

Company employees talking

Your Employees

Employees would have taken the brunt of work fatigue by this point, especially for those around since the beginning. Harvard Business Review has found eight critical issues for employees that have worked a decently long time in their companies. Some of these issues are minimal recognition, lack of appreciation, unfair treatment, and powerlessness.

If you haven’t invested in your employees both emotionally and financially, you’re going to have a hard time during the fifth year of your business because this is the time when they think they have worked enough for you and are considering careers elsewhere.

The average cost of replacing a single employee is around $4,100. This could cost you so much more depending on the employee you lose and how long you need to train them. One way you can invest in your employees is by giving them seniority over those who only have started in the company. Another way is through yearly benefits. You can increase their pay by a small margin every year until their next promotion. These incentives can help them stay and work for your company after its fifth anniversary.

Company Vehicle

A company vehicle is essential regardless of the industry you work in. If you don’t have one right now, you should consider investing in one. However, remember that when you have a car for your company, you will need a car accident attorney. You never know when an accident will happen, and insurance can indeed cover most of the damage for most situations.

However, for moments that insurance isn’t enough, you’re going to need your lawyer. This is very important. You’re going to need an expert to get everything you can get out of an accident because you can’t afford such an expense at this time. Also, consider letting your driver undergo an advanced or expert-level defensive driving course. This course can improve your driver’s skills and equip him with the necessary knowledge to avoid accidents.

These are some of the essential assets you need to have by your company’s fifth year. These assets will ensure that your company will see the light of the day after your fifth anniversary. Additionally, aside from these assets, try to cut down on costs when you see your company reaching the red. This will make it easier for your company to survive in the future.

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