[QUOTE=Joe;717329]
Quote:
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Originally Posted by JohnnyD
95% of small businesses fail
Wow! I did not know that.
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it's not accurate
from USA Today
"In other words, they had what David Birch, former head of a research firm specializing in studying small business data, called the "I Had No Idea" syndrome.
Would-be entrepreneurs don't realize what's truly involved with running a business.
So what is your chance of success? I think Birch's statistics are probably as accurate as any. His survival rates:
• First year: 85%
• Second: 70%
• Third: 62%
• Fourth: 55%
• Fifth: 50%
• Sixth: 47%
• Seventh: 44%
• Eighth: 41%
• Ninth: 38%
• Tenth: 35%
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Once you've hit five years, your odds of survival go way up," Birch said. "Only two to three percent of businesses older than five shut down each year."
The lesson? To greatly increase your chance of success, find out as much as you can BEFORE you open your doors. Talk to people who run their own businesses, especially businesses similar to yours, and get a realistic understanding of the time, financial, and emotional resources necessary. Keep your eyes open — not to the possibility of failure, but to the very real demands of running your own business.
So …
what about that 90% failure rate cited on the radio? I went to the station's Web site and replayed the story. Listening closely, I realized they didn't mention any time period. So, perhaps the professor is right after all. I think it's safe to assume that within some period of time — oh, let's say 50 years — 90% of all businesses will close. I can live with those odds.
Rhonda Abrams is author of The Successful Business Plan: Secrets & Strategies and president of The Planning Shop, publishers of books and other tools for business plans. Register for Rhonda's free business planning newsletter at
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