business? 95% fail within the first 5 years
Not quite sure exactly what your question is. Are you asking how many new business owners make it? Statistics show that 80 percent of new businesses fail within 5 years. Among day traders, that percentage is much much higher.
But the good news is that we know why small businesses fail and with proper planning, you can mitigate the circumstances that cause failure, Start with the number one cause - lack of cash flow. In other words, many new businesses are under-funded and the first slow period they hit rips through their operating cash, meaning they can no longer pay bills when they come due - this is why the smart entrepreneur starts with at least 1 year's worth of operating expenses in the bank and monitors very closely his cash flow and burn rate. The second reason for failure is inexperience (you see this a lot in restaurants, clubs and bars). You need to know your business in order to run it properly - I could never profitably run a farm, for example, because I know nothing about farming. Finally, you have absentee owners - many people like to own a business to say they are in business for themselves, but then they contract out management and don't check in - a sure recipe for failure (if you don't keep tabs on your own business, how can you be sure it is being run properly). One survey I read pegged about 70% of new business failures on these three reasons.
And Please tell me it's incredibly slim. I am in a field of business that's getting more and MORE people interested daily. It's almost as bad as stocks or daytraders... But how many day traders actually succeed, again and again until it's a lifetime income? Tell me a percent from what YOU'VE seen, as I know I can work hard but imagine: What if 100% of them worked at 100% efficiency? Wouldn't you be worried about so many competitors working as hard as humanly possible to kick your *** to the curb? Of course most will fail, but HOW MANY won't and will succeed at driving me out of business?
