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How many startups fail? Way less than you think.
krasimir
subscriber Posts: 2 Member
Given that my business deals with startups it's important for me to know how many startups don't make it.
After all, if most of my clients are destined to fail in several months then it doesn't make sense to work with them, right?!
The first time I searched for startup failure rate I was shocked to see that the number one result on Google claims that "90% of startups fail".
After doing some research, though, I learned that the actual number is way less.
So I just kept going, confident that my clients are there to stay.
Recently, though, I started getting this nagging feeling that I might not be the only one who was initially startled and probably discouraged by the "90%" myth.
So, after consulting with four reports on startup/business failure rate, I compiled a post that aims to dispel once and for all the grim and false myth.
I've also touched upon the two main reasons why startups fail - lack of proper research and not communicating effectively.
You can find the post here - https://www.tailoredcopywriting.com/startup-failure-rate/
After all, if most of my clients are destined to fail in several months then it doesn't make sense to work with them, right?!
The first time I searched for startup failure rate I was shocked to see that the number one result on Google claims that "90% of startups fail".
After doing some research, though, I learned that the actual number is way less.
So I just kept going, confident that my clients are there to stay.
Recently, though, I started getting this nagging feeling that I might not be the only one who was initially startled and probably discouraged by the "90%" myth.
So, after consulting with four reports on startup/business failure rate, I compiled a post that aims to dispel once and for all the grim and false myth.
I've also touched upon the two main reasons why startups fail - lack of proper research and not communicating effectively.
You can find the post here - https://www.tailoredcopywriting.com/startup-failure-rate/
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Comments
Travel Well, For Less
It's my pleasure to help people travel more and well for less.
However, I have also always questioned the "90 percent failure" narrative for startups. That just doesn't seem like a plausible scenario, and I am glad you were able to research this and come up with a more realistic answer, though it still seems rather high.
Community Manager
StartupNation, LLC
https://www.fatbit.com/fab/biggest-online-startup-failures-read-learn/ -the source
As a CPA I have business clients walk into my office who have inflicted aspirations of starting a business and most of the time have already started it or are very close to opening their doors.
Generally, they have not done a business plan or SWAT analysis or a budget and most of the time they are not properly capitalized to withstand the 2 years plus that it takes the average startup to get a foot hold.
I think that 9 out of 10 business fail or shut their doors within 5 years. I believe roughly 50% of all startups fail within 12 to 18 months.
Partner
Zagotti & Burdette CPA, LLC
ZnBcpa.com