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well i guess you will just have to find out how true what i said is on your own.... good luck
while 55% of the businesses may survive the first 5 years less then half dont go beyond break even bringing the number to about a 20% success rate.. some areas may see a 33% success rate but its really up to how your own business fairs and where you are located.
well i guess you will just have to find out how true what i said is on your own.
On the contrary, I have found how ridiculous it is. I have started three separate businesses over the last 15 years and none of them have failed. I discontinued the first 2 for practical reasons, not because they stopped generating profit.
The myths you are repeating are rather unhelpful to others, if I would have listened to this nonsense when I was younger my life would be much worse.
Quote:
Originally Posted by mathjak107
while 55% of the businesses may survive the first 5 years less then half dont go beyond break even bringing the number to about a 20% success rate..
I guess you think by repeating this myth that it some how makes it true? There is in fact no data that supports what you are saying, it is a myth.
Its a bit amusing that you take the numbers you are pulling out of your rear seriously though.
58 years personal expierence right here in new york city.....as well as data you can read all over...
the question is how do you define a business thats successful?????????????????? what kind of return on investment do you consider successful? what amount of income from that business do you consider successful?
if i can make more with no investment as an employee vs shelling out dough ,taking the risk then that business isnt successful to me.....(maybe for the business owner if hes making 30 grand in the business and its more than the 25,000 as an employee somewhere, but to me it wouldnt be successful.
successful is a relative term that means something different to all of us....
besides being an employee at my profession ,im partners in a family owned real estate holding company...my parameters for success maybe different then yours or the next guys as to whats a successful business...
my figures are based on the fact that lots of folks have businesses...the reality is they keep them going but there isnt enough profit to even justify the business.. they may have faired better working for someone... we have loads of businesses right here in nyc where the owners dont even clear 40-50,000 bucks working 7 days a week 12 hours a day.... for me that business would be a failure.
its all relative to the capital needed to start the business, where you live , what equivelent attainable salaries are etc.... maybe 50,000 out in idaho is alot of dough, here in nyc its not.
you cant talk about statistics without defining what "successful means" if you mean the lights are on 5 years later then yes the statistic would be higher.
we are planning to retire very soon nice and young and we will start a real estate and web photography business in pa but while we know we can earn more probley working regular jobs this is more a hobby and my wife and i looove photography but non the less we will give it a go.
Last edited by mathjak107; 05-28-2010 at 03:40 AM..
58 years personal expierence right here in new york city.....as well as data you can read all over...
How many businesses have you started? You said you were 57, how can you have 58 years of personal experience?
And no you can't read the data "all over", it does not exist. Its nearly impossible to collect the data in a statistically relevant matter as small-businesses have closed books.
Quote:
Originally Posted by mathjak107
i take it your rather young yet, you still have to get your feet wet before you can make rational judgements about lots of things ...
Yawn. One's age is irrelevant when it comes to "rational judgment", rather its about the underlying logic.
Regardless, you are now trying to tell me that I'm going to find just how risky business is despite the fact that I have already succeed 3 times. At our current growth rates I will have a net-worth in the millions in the next 2-3 years. All with a start-up capital of $500. Where exactly is the risk? In business you can control how much risk you expose yourself to.
How many businesses have you started? You said you were 57, how can you have 58 years of personal experience?
And no you can't read the data "all over", it does not exist. Its nearly impossible to collect the data in a statistically relevant matter as small-businesses have closed books.
Yawn. One's age is irrelevant when it comes to "rational judgment", rather its about the underlying logic.
Regardless, you are now trying to tell me that I'm going to find just how risky business is despite the fact that I have already succeed 3 times. At our current growth rates I will have a net-worth in the millions in the next 2-3 years. All with a start-up capital of $500. Where exactly is the risk? In business you can control how much risk you expose yourself to.
im not singling out you, you maybe quite successful at what you do..... overall though alot of the small businesses i see dont really have good financials..
im in the wholesale electrcal and building supply business so we run credit checks and balance sheets on thousands of our customers,.
most business fail not because of bad ideas but a mis-judgement of the amount of capital it may take.. another family business we had failed because it grew so fast we outgrew our credit lines and couldnt continue..... there was no history and capital dryed up so the company dis-banded ... we brought in some investors but we just couldnt get enough capital to fill orders and keep going.
most of my net worth has been made as an investor so we are on opposite ends of the spectrum....
Last edited by mathjak107; 05-28-2010 at 03:53 AM..
the question is how do you define a business thats successful?
Every business has different goals and each industry is different.
Quote:
Originally Posted by mathjak107
if i can make more with no investment as an employee vs shelling out dough ,taking the risk then that business isnt successful to me...
Hence contrary to popular myth most people don't do this, its not worth it. After a few years if they are not able to generate a decent income and have the ability to gain employment else where for more most people will close up shop.
Quote:
Originally Posted by mathjak107
you cant talk about statistics without defining what "successful means" if you mean the lights are on 5 years later then yes the statistic would be higher.
I guess you don't take your own advice? You are the one that started to talk about statistics...not me.
Anyhow, you are just back paddling. Starting a business and not being able to generate a profit that you are happy with is much different than starting a business and going bankrupt. Usually people in the former case can either sell the business or liquidate it and walk-away with their finances in good shape.
Businesses can control the amount of risk they expose themselves to, therefore implying how risky business is shows a fundamental lack of business knowledge.
and i still stand by the only 20% of the startups are "successfull" 5 years later.... 2 recessions this decade back to back has killed sooooooo many and many more will fail .... no one could control that anymore then we can control the markets....
Last edited by mathjak107; 05-28-2010 at 04:11 AM..
im in the wholesale electrcal and building supply business so we run credit checks and balance sheets on thousands of our customers,.
I've never had a supplier ask for a balance sheet before, just credit checks and references. Regardless, you are generalizing from non-random samples from a single industry. Is this the sort of "rational judgment" you've developed over the years? Because its mathematically nonsensical.
Quote:
Originally Posted by mathjak107
most business fail not because of bad ideas but a mis-judgement of the amount of capital it may take....
This is from the rear, you have no idea the primarily reason businesses fail. Personally, I would doubt there is a dominate reason, but I've never seen any good research done on this.
no point going on any further ,we are so far off topic...... ,,,, i guess time will tell all.......
anyway heres yet another statistic ..notice they use the term "survive" not successful
we can all cite statistics every which way , the only important one is what happens to you.
i think we went off on this tangent because you had stated no real wealth could be accumulated passively and only by being in control of a business
its funny how if we wanted to argue statistics for whatever thats worth , statistically the markets are up long term 67% of the time and down only .33% of the time... that looks like better odds then the 50/50 alot of organizations are placing on just business survival not buisness successful....
we all know that whatever the above is supposed to mean its really a meaningless statistic but non the less a statistic..
you have been successful as a business owner, thats fabulous... i have been successful as a passive investor... but the question is, so what? what does that mean for anyone else....
thats really whats wrong with us quoting statistics and studies...
Last edited by mathjak107; 05-28-2010 at 04:41 AM..
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