Do 99% Of Businesses Fail?
What do you guys think of the statistic 99% of businesses fail? Do you think it's accurate?
Today I was hanging with some other entrepreneur/solopreneur friends and I asked this question.
Mainly because I couldn't believe that I was surrounded by a roomful of people who were making it happen.
They obviously weren't failing, because they were able to live here in Bali and work towards achieving their goals and dreams.
In fact, I've met sooo many people doing amazing things that it made me question if the 99% statistic was just a little bit too high.
Growing up I've always had a ton of ideas. Invention ideas, business ideas...
... you name it.
But I heard that statistic and had the mindset that I wasn't in the top 1% and it would be pointless to try any of those ideas or to ever attempt working for myself.
I decided to play it safe. Do things the way I was told to do and the way society says you should do things. I went to college and got good grades. I graduated with honors.
I got a degree in something with job security that people are always hiring for.
And then I used my degree for 4 months and never used it again.
It's crazy how much your mindset can change just because you meet the right people who can help you change it or because you're in the right place at the right time and you end up learning something.
Let's just say I don't think like I used to. I used to have a very fixed mindset and now I have a growth mindset.
Anyway, I asked my friends tonight if they think that 99% of businesses fail.
One of them said "yeah. I've started 20 businesses and only 1 of them has worked out."
That's it.
That's what I take from the quote now. That right there is the difference between not even trying because you think you can't do it, and trying 20 times because you know that even after failing 19 times, eventually, you're going to get it right.
I love that.
I would argue that 100% of business’s fail on a long enough time horizon. That doesn’t mean that they didnt provide jobs, income, prosperity and wealth creation of their communities in the meantime. Every business will fail eventually. For a modern example, the original DOW was made up of 30 companies, most of which you have never heard of . All of them were kicked out eventually except for 1 (GE) recently GE was also kicked out. It is just the natural course of things that as technology and demand changes business will also change. Remember my article on blockbuster? Only 1 left now. Lets go take a Mene selfie in front of it!
This is such a good response! Maybe that's what that statistic REALLY means and should stop being used to dissuade people into going after their dreams or trying to create something! Great example too and YES to the selfie!
Well, in my opinion, when we look from the long term perspective (10+ years), it’s unfortunatrly true. Even if your business is working for the first 2 years, you can fail in the next 3 years or later on. So I know many businesses working just fine for certain amount of time, but after that, market was changed, new technology came etc. Those businesses are no longer exist, they just couldnt adapt fast enough.
My business failed in year 3 and was doing great for years 1-2! I could probably try to revive it honestly but I don't want to. So now I'm starting over. I just imagined myself as a turtle at the "couldn't adapt fast enough."
You're right though! I'm proof i think. But I'm excited to be starting new things again
I think to be a good entrepreneur you have to fail. I've failed multiple times, not 19 but probably 6-7 before my current business that is working and profitable. I've learned through each of them and they have evolved me and my thinking about business. It's always interesting to hear from people who got it right the first time, it's not bad or impossible it's just rare.
Anyway, all that said I wouldn't change it for anything, continually challenging but always rewarding!
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I love so much that you said that you HAVE to fail. I love the quotes I hear now like "there's no such thing as failure, just learning" or "failure is the opportunity to begin again only more wisely this time" or "only those who dare to fail greatly ever achieve greatly."
Those quotes would have been nice to know about when I was younger! But better late to the game than never.
You don't fully fail unless you quit I think. You seem like a perfect example of that. I'm so glad you commented on this @larrymorrison!
Those are great quotes. I'm glad I saw your question @nomadicsoul.
I agree that you only fail if you give up. What's funny is that our education system in the states is not made to create entrepreneurs because it rewards perfection and tells kids making mistakes is a bad thing or failure is something to avoid. Only when you get to the business world do we see that being afraid of failure is what causes most people to not even try which might be the biggest failure of all.
Here is another quote for you, "Our doubts are traitors and make us lose the good we oft might win by fearing to attempt." Shakespeare
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99% of all statistics are made up!
i recently watched like a marathon load of these UK 'dragons den' programs. Good ed for any budding entrepreneur. I heed the words of Peter Jones, hearing his business talk and achievements are very interesting, and I now live by these words of his ....
"There is no failure, only feedback":
"I’ve always had this mantra that there’s no such thing as failure, only feedback. It’s what you learn from mistakes that determines whether you make it again. Even today, I learn all the time." ~ Peter Jones
Haha crap I thought it was 89% of all statistics are made up!!
I love those dragons den/shark tank shows!
And yes! I agree! I love quotes like "there is no failure, only feedback" and things. I wish I had heard those quotes when I was younger instead of "99% of businesses fail so don't bother trying" lol. Oh well. Better late to the game than never.
Thanks for sharing these quotes!
Ohh I love this. Thanks for the motivation. All it takes is one solid idea. :)
Yep and then following through all the way to the end haha sometimes I have too many "solid ideas" and then get distracted
Hahaha same here!!
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