Basic Structure Of A Business Plan For Beginners
According to Small Business Trends, a third of small businesses get started with less than $5,000, and 58% got started with less than $25,000. 26% of business owners started because they were willing to be their own boss;
23% because they wanted to pursue their passion and 19% because the opportunity presented itself. Other reasons to start varied from being not ready to retire to dramatic life events such as divorce or death.
Out of all small businesses started in 2014, 80% made it to the second year (2015). 70% made it to the third year (2016). 62% made it to the fourth year (2017), and 56% made it to the fifth year (2018). A bit more than half of all startups actually survive to their fourth year. As of then, the startup failure rate is about 44%.
When it comes to the main reasons for failure, 42% of them fail because of a lack of market needs; 29% due to lack of cash and 23% because they hire the wrong team.
19% get outcompeted or face pricing/cost issues and 17% because of un-friendly product or lack of a business model. Poor marketing and relationship with costumers also have an impact on 14% of unsuccessful ventures.