{"id":2290,"date":"2009-11-22T18:57:02","date_gmt":"2009-11-22T22:57:02","guid":{"rendered":"https:\/\/joyfullyjobless.com\/blog\/?p=2290"},"modified":"2009-11-22T18:57:02","modified_gmt":"2009-11-22T22:57:02","slug":"urban-myths-and-startup-statistics","status":"publish","type":"post","link":"https:\/\/joyfullyjobless.com\/blog\/2009\/11\/urban-myths-and-startup-statistics\/","title":{"rendered":"Urban Myths and Startup Statistics"},"content":{"rendered":"
\n

Not long ago, I got an e-mail from a woman who had been in my Making a Living Without a Job<\/em> seminar. She was nervous about exploring self-employment, she said, because she\u2019d heard that 90% of all small businesses fail. \u201cAre you suggesting,\u201d she asked, \u201cthat we attempt something that has \u00a0only a 10% chance of success?\u201d<\/p>\n

\u00a0<\/p>\n

Fair question, I thought, but based on faulty information.<\/p>\n

\u00a0<\/p>\n

I\u2019ve heard these crazy statistics for years. In fact, not long ago, I was watching the Twitter conference and there was Tony Robbins, one of America\u2019s most famous speakers, warning the audience that 80% of all businesses fail.<\/p>\n

\u00a0<\/p>\n

Good grief. Where\u2019s he getting his information? If failure was so imminent, every office park and retail area would be jammed with U-Haul trucks. Furthermore, these statistics are blatantly inaccurate because they only measure a tiny portion of the business community. Highly capitalized businesses have a higher failure rate than bootstrapped operations, but 80% is still a gross exaggeration. In addition, businesses that are sold or merged are counted as a failure since they no longer exist in their original form.\u00a0<\/p>\n

\u00a0<\/p>\n

If we\u2019re going to look at statistics, I suggest \u00a0paying \u00a0attention to the study of 3,000 small businesses which was conducted by the National Federation of Independent Business and American Express. This study focused on what it takes to survive the startup years. Here\u2019s what they found:<\/p>\n

\u00a0<\/p>\n

\u00b0 Personal characteristics shared by the winners were having self-confidence, knowing their product and devoting full time to the business.<\/p>\n

\u00a0<\/p>\n

\u00b0 Three-fourths of those who started a business were motivated more by having control over their time rather than money.<\/p>\n

\u00a0<\/p>\n

\u00b0 Eighty percent of those who worked between 60-69 hours\/week remained in business after three years. However, those who worked beyond\u00a0 69 hours or fewer than 40 were among the failures.<\/p>\n

\u00a0<\/p>\n

\u00b0 Companies who emphasized better service had a higher survival rate than those who relied on price cutting as a strategy.<\/p>\n

\u00a0<\/p>\n

\u00b0 Small business owners who hold down a regular job are less likely to succeed than those who give full time attention to the business.<\/p>\n

\u00a0<\/p>\n

\u00b0 A positive attitude toward small business in general and their own business in particular was a critical factor. Believing in their success increased the odds for it.<\/p>\n

\u00a0<\/p>\n

\u00b0 There\u2019s no turning back for the winners. Despite long hours and hard work, a whopping ninety percent of those who were still in business after three years said they would do it again.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Not long ago, I got an e-mail from a woman who had been in my Making a Living Without a Job seminar. She was nervous about exploring self-employment, she said, because she\u2019d heard that 90% of all small businesses fail. \u201cAre you suggesting,\u201d she asked, \u201cthat we attempt something that has \u00a0only a 10% chance…<\/p>\n

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