Fear Of Selling: The Hidden Reason Behind New Zealand’s High Business Failure Rate

In New Zealand, two-thirds of businesses fail within their first seven years, with lack of sales often cited as the primary reason—but beneath this explanation lies a deeper issue: fear of selling.

“Selling is not about being pushy; it’s about understanding your customer’s needs and providing solutions,” says Assia Salikhova, managing director of business development agency Smarketing Lab.

This fundamental misunderstanding of sales drives many entrepreneurs to avoid proactive selling altogether, relying instead on referrals or passive inquiry forms, with the consequences of missed opportunities and unsustainable revenue streams.

The Role of Sales in Long-Term Survival

Many businesses fail not because of a lack of potential clients but due to an inability—or unwillingness—to pursue them.

“Fear of rejection and the belief that selling is intrusive are holding back Kiwi entrepreneurs,” says Salikhova. “But in reality, people are happy to hear from you if you’re offering value. The key is to approach the conversation with confidence and clarity.”

This reluctance to engage in direct selling is particularly damaging in competitive markets, specialised professional services and almost every small business without dedicated sales force. While small businesses often rely on word of mouth and referrals the truth is they too must actively seek out new clients to survive. “Without consistent sales efforts, businesses can’t maintain momentum,” says Salikhova. “And waiting for clients to come to you is a dangerous gamble, especially in today’s economy.”

Overcoming the Fear of Selling

To tackle the fear of selling and secure long-term success, business owners need to shift their mindset and adopt effective strategies.

1. Reframe Selling as Helping
   Many entrepreneurs fear selling because they view it as self-serving. Instead, focus on how your product or service solves a problem. “Selling is about meeting needs,” says Salikhova. “If you genuinely believe in your offering, you’re delivering good news, not inconveniencing anyone.”
2. Prepare and Build Confidence
   Lack of preparation often amplifies anxiety around selling. Researching prospects and crafting a tailored pitch can make all the difference. “Know your audience and their challenges,” says Salikhova. “When you’re prepared, you’ll feel more confident, and that confidence will come through in your conversations.”
3. Start Small and Practice Regularly
   Developing a sales habit is crucial. Start with existing contacts or warm leads to build momentum. “Sales is a skill,” says Salikhova. “Like any skill, it takes practice. The more you do it, the easier it becomes—and the better the results you’ll achieve.”

Taking Control of Your Business Future

Businesses that fail to develop a consistent sales strategy risk falling into the two-thirds that don’t survive their seventh year. Yet, with the right tools and mindset, this outcome can be avoided.

“Don’t let fear dictate your business decisions,” says Salikhova. “Take control of your sales process, and don’t be afraid to reach out to people. A single call could lead to a game-changing opportunity.

“Selling is the bridge between where you are now and the success you want to achieve.”

ABOUT

Smarketing Lab is a Boutique B2B sales and marketing implementation agency that offers profitable B2B solutions for growth.

Founded in 2003 in Wellington, New Zealand, Smarketing Lab offers customised solutions that combine technology and modern trends with proven sales and marketing strategies. Smarketing Lab serves clients across New Zealand, Australia and internationally.

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