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Top 5 Businesses w/ Best Rate of Success

Phuong White Business Basics Leave a Comment


Statistics show that 25% of all new businesses fail within their first year.  By the tenth year a deadening 71% of hopeful start-ups fall in the fail pile. If entrepreneurship is your dream, it is wise to choose your industry carefully.  The following is a list of the industries still operating after 4 years and their percentages:

·      58% of Finance Insurance and Real Estate

·      56% of Education, Health and Agriculture

·      55% of Service based businesses

·      54% of Wholesale

·      51% of Mining

·      49% of Manufacturing

·      47% of Construction and Retail businesses

·      45% of Transportation, Communications and Utilities

·      37% of Information related businesses

The Major Causes of failure rate finds it way back to four main factors:

 

FACTOR #1 INCOMPETENCE

46% contributed failure to Incompetence that resulted in Emotional Pricing, Living too high for the business, Nonpayment of taxes, No knowledge of pricing, Lack of planning, No knowledge of financing and No experience in record keeping.

 

FACTOR #2 UNBALANCED OR LACK OF MANAGERIAL EXPERIENCE

46% contributed failure to Unbalanced or Lack of Managerial Experience leading to Poor credit granting practices, Expanding too rapidly, and inadequate borrowing practices.

 

FACTOR #3 LACK OF EXPERIENCE

11% contributed failure to Lack of Experience in line of goods or services giving way to carry inadequate inventory, No knowledge of suppliers, and Wasted advertising budget.


FACTOR #4 NEGLECT, FRAUD, AND DISASTER

1% contributed failure to Neglect, Fraud, and Disaster.

 

Business Start Up & Their fail rate by year:

Year 1 = 25%

Year 2 = 36%

Year 3 = 44%

Year 4 = 50%

Year 5 = 55%

Year 6 = 60%

Year 7 = 63%

Year 8 = 66%

Year 9 = 69%

Year 10 = 71%

 
 




 

Businesses with Best Rate of Success After 5th year:

1.     Religious Organizations

2.     Apartment Building Operators

3.     Vegetable Crop Productions

4.     Offices & Clinics of Medical Doctors

5.     Child Day Care Services

 

Businesses with the Worst Rate of Success After 5th year:

1.     Plumbing, Heating, Air Conditioning

2.     Single-Family Housing Construction

3.     Grocery Stores

4.     Eating Places

5.     Security Brokers and Dealers

6.     Local Trucking

 

A new trend in failed start-ups is the purchasing of patents by what are derogatorily known as – Patent Trolls.StatisticBrain.com

 

 

 

http://www.phuongwhite.com/most-popular-personality-tests/

 

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