In this stagnant economy, you find yourself treading the mill to nowhere, anxious about the next round of layoffs or spinoffs, and hating your boss who is 10 years your junior. Armed with all the right gear and gadgets, kudos from family members and friends, your own website, and a flock of followers on a number of social media sites, you are hyped to launch your own business.
Before you quit your day job and make that leap, you may want to reality check your exuberance with the following facts about business startups from the United States Small Business Administration. Similar statistics and issues apply to startups in the United Kingdom and probably other countries worldwide.
1) 50% or more of business startups fail within the first five years. Only 30% of small businesses are still in operation after 10 years.
2) Undercapitalization, the number one reason small businesses fail, can cripple a startup even before it earns its first dollar.
3) Inexperience with business management, ineffective marketing, and unrealistic assumptions about business ownership further hobble new business owners.
4) Absence of adequate bookkeeping and lack of knowledge related to accounting and tax requirements play a significant role in business failures.
This information might seem like a pinprick to your ballooning prospects, but grounding yourself from the get-go will help you to make more informed and logical business decisions. You will need ...