But first…an important pop quiz!

How Many Businesses Fail in the First 5 Years?

We all hear the depressing quotes about how 9 out of 10 businesses fail within the first 12 months, most business owners are barely scraping by, bla bla bla BUT what is the truth?

What is the TRUE failure rate of “small businesses” aka less then 100 employees? 

The fast answer for what percentage of small businesses fail, according to data from the Bureau of Labor Statistics, is roughly 20% of small businesses fail in their first year, and roughly 50% of small businesses fail by their fifth year.

So not QUITE as depressing as we are led to believe.

But it’s also helpful to see this statistic in terms of how many American small businesses SURVIVE!

According to the Bureau of Labor Statistics’ Business Employment Dynamics, here’s what the SUCCESS rate looks like:

About 80% of businesses with employees will survive their first year in business. The most recent data shows that, of the small businesses that opened in March 2016, 79.8% made it to March 2017.

About 70% of businesses with employees will survive their second year in business. The recent data shows that of the small businesses that opened in March of 2015, 69.2% made it to March of 2017.

About 50% of businesses with employees will survive their fifth year in business. Data shows that of the small businesses that opened in March of 2012, 50.2% made it to March of 2017.

About 30% of businesses will survive their 10th year in business. The most recent data shows that of the small businesses that opened in March of 2007, 33% made it to March of 2017.

So with that in mind, I’m going to make you 3 promises….