So we've all heard that 98% of small business will fail in the first 5 years. Hopeful entrepreneurs will look at that statistic one of two ways.. either as a challenge or as a reason not to pursue a business.
But what if I told you that number was bullshit?
This chart from the SBA shows that 2/3 of small business survive the first year and roughly half will make it to year 5.
Yet why is it when we google "what percent of small businesses fail?" we are peppered with statistics of 90%+? Your guess is as good as mine, but it's a fear tactic.
It's a fear tactic your family will use on your when you tell them your great idea. It's a fear tactic your spouse will use on you when you say you want to start a business. It's even a fear tactic a bank will throw at you when you try to get a loan.
Screw their fear. You know why you're here and you know what you want to do. I used to think that we all had the potential to beat the odds and be that 1%. But we definitely have the potential to beat the odds and be part of that 50% that's profitable after 5 years in business.
As a side note, you know what "businesses" fail 99% of the time? The FTC did a study and found only 1% of MLM participants are profitable. Kind of ironic that MLM pitchers will use that 98% failure rate as a recruiting tool...
Go out there and start a business. Solve a problem, provide value and be profitable! And tell your nay sayers and fear mongerers to F off.
But what if I told you that number was bullshit?
This chart from the SBA shows that 2/3 of small business survive the first year and roughly half will make it to year 5.
Yet why is it when we google "what percent of small businesses fail?" we are peppered with statistics of 90%+? Your guess is as good as mine, but it's a fear tactic.
It's a fear tactic your family will use on your when you tell them your great idea. It's a fear tactic your spouse will use on you when you say you want to start a business. It's even a fear tactic a bank will throw at you when you try to get a loan.
Screw their fear. You know why you're here and you know what you want to do. I used to think that we all had the potential to beat the odds and be that 1%. But we definitely have the potential to beat the odds and be part of that 50% that's profitable after 5 years in business.
As a side note, you know what "businesses" fail 99% of the time? The FTC did a study and found only 1% of MLM participants are profitable. Kind of ironic that MLM pitchers will use that 98% failure rate as a recruiting tool...
Go out there and start a business. Solve a problem, provide value and be profitable! And tell your nay sayers and fear mongerers to F off.
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