Before you Start A New Business, Read This
When I was a kid, the American dream was owning your own home. Later it became a college education for the children. Now, it's owning your own business. Before you take the big leap to being your own boss, there are some things you should know.
According to recent studies and smallbiztrends.com, only 40% of businesses are profitable, 30% break even, 30% are losing money, and of all small businesses only 9% have any chance of surviving 10 years.
Breaking it down a little more, research says 50% of new businesses fail within the first year. and 95% fail within the first 5 years. Highest business failures are restaurants. Fully 60% of independent restaurants fail. Next in line are retail stores. 80% of retail clothing stores fail within the first 5 years. Direct sales is another risky business. 99% of direct sales reps suffer very significant financial losses, and most quit entirely for financial reasons.
Before you get discouraged, there are some things you can do to help insure business success. Do lots of research before you start your own business, have a good business and marketing plan, and more than adequate finances.Find the success stories, and research how they did it. Remember the days of hanging out a shingle and thinking people will come are too long gone.