Startup Business Failure Rate

I quite liked some of these from last year, even though they are for the USA

http://www.statisticbrain.com/startup-failure-by-industry/

I think the stats are worse for Ireland, but, in summary,

  1. Half the businesses are gone in four years.
  2. Nearly half the time because of incompetence.
  3. But the leading Management mistakes are classic: no WHY! Listening to Family and friends instead of business experts, pride, lack of market awareness.
  4. I think we have some good ideas to help!!!
Startup  
Year Percent Failed
Year 1 25%
Year 2 36%
Year 3 44%
Year 4 50%
Year 5 55%
Year 6 60%
Year 7 63%
Year 8 66%
Year 9 69%
Year 10 71%

 

  Major Cause  
  % of Failures Specific Pitfalls
1 46% Incompetence
2 30% Unbalanced Experience or Lack of Managerial Experience
3 11% Lack of Experiences in line of goods or services
4 1% Neglect, fraud, disaster

 

  Leading Management Mistakes
1 Going into business for the wrong reasons
2 Advice from family and friends
3 Being in the wrong place at the wrong time
4 Entrepreneur gets worn-out and/or underestimated the time requirements
5 Family pressure on time and money commitments
6 Pride
7 Lack of market awareness
8 The entrepreneur falls in love with the product/business
9 Lack of financial responsibility and awareness
10 Lack of a clear focus

 

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Word of Mouth Marketing

Family recommendations carry the most weight

  • More than two-thirds (70%) of US consumers trust brand and product recommendations from their friends and family, but only 10% feel the same about online ads, a report from Forrester has revealed.
  • Professionally-written online reviews on sites like CNET are deemed trustworthy by 55% of shoppers, while consumer-written reviews on sites like Amazon are found to be valuable by 46% of respondents.
  • 43% trusted natural search engine results, as did 32% for the information contained on brand and company websites.

I got this from eConsultancy, a site I like: We still rely on word of mouth, but we build up trust in a brand over time.
And so it is with ACN, I trust them!

I am looking for a three people to work with who want a business, part time or full time, and this, in my experience

  • (26 years, corporate, self employed and owning a limited company)
  • is the best shortcut to success without the risks of a traditional business.
  • But you have to invest in your business, time, money, effort, commitment!!

Ireland relaunch imminent.

Regards

Robert