Kyle Balmer breaks down why 90% of startups fail in their first three years and what actually helps businesses survive. Online businesses with low overhead, global reach, and the ability to pivot have the best odds.
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As a business owner, you've probably heard some of the terrifying stats about how many businesses fail. According to a study by the website Inc.com, approximately 90% of all startups fail in their first three years. What's important here though is that this is for all types of business. If we start to delve into the statistics a bit more, we get some insights into what type of businesses we can start which will do better. The more likely to succeed businesses have no location, they have access to global markets, they have lower startup costs, they have lower overheads, they have lower staff requirements and more automation, and they're more easily able to pivot if they don't reach product market fit. What do all of these have in common? To me personally, these sound like an online business. So here's the big takeaway. If you're choosing between a primarily online or primarily offline business, all things equal, always go with online.