Starting a business sounds exciting, but there is a harsh reality that most don’t last. Data reveals that only one-third of businesses survive 10 years. Moreover, it is learned that one in five fails within the first year. Agriculture and forestry businesses have a slightly better survival rate, but about fifty percent of them make it to a decade. The numbers are sobering and no matter what is the industry.
The question arises as to why do so many businesses fail. There is not a one reason behind it. Some people start without enough money while others find the demands on their time too much to handle. Some lack experience or start for the wrong reasons. Financial management is often a big hurdle and many don’t know how to properly read or use financial statements.
There is one harsh truth beyond these reasons. Running a business is hard and often boring. An eBay reseller David Pelayo spends days fulfilling orders, packing boxes and sourcing used items to resell. His daily routine is not glamorous, but it works as he puts in the effort day after day.
This is the reality of entrepreneurship. It is not about instant success or world-changing ideas. It is about long hours, repetitive tasks and handling challenges like rising costs, employee demands and endless competition.
It is suggested to think twice if one is not ready for the relentless hard work and uncertainty. It can be assumed that it might not be for the person. However, if the person is determined, it is suggested to consider a smarter path and buy an existing business. This will help in getting something with a foundation like customers, employees and operations which are already in place. It is though not foolproof, but it can at least give a better chance than starting from scratch.
The truth is this that entrepreneurship is far from the glamorous life as many imagines. It is tough, exhausting and often thankless. But if one is ready for the grind and can embrace the challenges, it just might be worth it.
