Please let me know (in the comments) if my slightly off-topic forays into the world of internet-startups are interesting, boring … or, somewhere in between.
If you’re still not sure, read today’s post then answer the poll 🙂
I’m sure that many people are put off the idea of starting a business – any business, not just a web-business – by the perceived failure rates: the ‘urban myth’ is that 9 out of 10 businesses fail in their first five years, so I wouldn’t blame you for simply dismissing the idea of becoming an entrepreneur!
For you, though, the chance of failure is 50/50: either you will fail … or you won’t.
Statistics (i.e. what happens to OTHER small business owners) mean nothing to you … but, your personal success or failure means everything.
Even if you subscribe to the statistics more than my philosophical view, we can still agree because the real numbers are much closer to 50/50 than 90/10 [click on the image to enlarge]:
[Source: Amy Knaup, Monthly Labor Review]
The chart shows that the four year survival rate for small businesses across the USA is anywhere from nearly 40% to nearly 60%. While not quite 5 years, and not quite 50/50 (you can reduce these 4 year survival rates by approx. 10% for each succeeding year), it’s certainly not as glum an outlook as the 90% failure rate that the popular press would have you believe.
So, how would you like a surefire way to tell IN ADVANCE if your Internet-business has an 85% chance of surviving, with an additional 9% chance of being sold for millions of dollars, and with a ‘booby prize’ of at least a 75% chance of achieving a huge amount of additional funding (an average of $500k)?
Fortunately, for the Internet entrepreneur there is a super-reliable way of doing this:
Simply apply to join one of the respected Venture Accelerators springing up all over the world!
If you DO manage to make your way through their selection process, here’s what you can expect in terms of survival/success after 4 years:
Time to dust off that business plan?