click here for audio FAILURE RATIO
There are certain ingredients every business owner needs whether they are starting a business, or looking for success in an existing business. Small business entrepreneurs are the most courageous and optimistic people I have ever met. They are also sometimes the most naïve and tortured souls, I have ever met. Many small business persons have taken their dream, their desire, their thoughts, and a mindset they can succeed against all odds. Well, with the failure ratio of all new businesses about 90%, by the fifth year. Think of all the broken dreams, and all the financial disasters; which are part of being a entrepreneur, and running your own small business.
What happens to the 10% who have managed to stay in business past the fifth year. I know the odds of 50% by the first year and 90% by the fifth year can be improved, by starting the right way. With all the financial and economic pitfalls, and business roadblocks out there. Even the 10% of businesses who survive past the fith year. Are within one mistake, one bad break, one downturn in business; or one bad business decision of going under themselves. I admire every entrepreneur who has put everything they own on the line, to fulfill his or her personal dreams of having their own business. It is not only using their own personal resources including money they have saved. Loans taken from banks.
Personal loans from relatives or friends. Getting a mortgage on their residence, to go into business, or to stay in business. They some times put their families at a grave financial risk. If their business goes under. The fallout is not a very pretty sight.
The great burning question is how does a small business person increase their chances of success, and lessen the risk of failure. The failure rate of 50% of all new businesses failing in the first year and 90% failing by the fifth year, are not just guestimates. These are the cold hard facts. The question again is how do I as a small business person beat those odds.
"When You Win, We Win"