Most startups will fail.
It doesn’t matter what the actual business is.
Initial failures are almost always going to be due to lack of financial resources to survive the start up phase.
And very few business owners are brutally honest with themselves about the first year.
Most think they get their cards printed up and then the money will start pouring in the door.
You’ve gotten your training and have all the new tools and vehicle etc. but
the phone is probably not going to ring much.
And to be brutally honest,
“No one cares that you just opened your business”. :shock:
You have to hit the bricks over and over and try to work every possible angle to get your name out there and persuade people to try you.
Hopefully once clients and agents have tried you they’ll pass your name on and use you again.
And that’s only if you actually do a better than decent job.
If you turn on the radio and hear a “decent” song by singer X will you want to hear more? Probably not as there will be another song coming on next that might be “decent” or better and you’ll have forgotten the one by singer X.
So it’s not surprising that 50% are gone in the first year.
What about the businesses that fold up after 3-5 years?
Obviously they made it that far but the numbers finally didn’t add up so they closed the business. Sometimes that can be due to an overall economic downturn like the last recession. The boom years ended and thousands of businesses of all types disappeared. Hopefully that won’t happen again for awhile. But it will happen.
IMHO the 3-5 year failures are mostly due to just being an average home inspector. They didn’t provide any real reason for clients or agents to continue using them. Business came in. The phone rang. But not often enough to sustain and grow.
-This is from The Small Business Administration-
“What is the survival rate for new
“About half of all new establishments
survive five years or more and about
one-third survive 10 years or more.
As one would expect, the probability
of survival increases with a firm’s age.
Survival rates have changed little over