Upping the Odds of Startup Success

After debunk­ing the myth that only one-in-ten star­tups suc­ceed (the rate of suc­cess is more likely around 60–70%), Dan Kehr­er offers us four key factors that improve the odds of new busi­ness sur­viv­al:

  1. People. If you can afford to hire employ­ees, do it. Well-staffed busi­nesses have bet­ter sur­viv­al rates than solo oper­a­tions.
  2. Star­tup cap­it­al of at least $50,000. Not easy, per­haps, but busi­nesses that start with less have high­er fail­ure rates.
  3. A col­lege degree for the own­er. Bet­ter yet, enroll in a col­lege-based entre­pren­eur­ship pro­gram and learn the ropes before you get star­ted.
  4. Home begin­nings. To keep costs low, start ini­tial stages of your busi­ness from a home office. Busi­nesses that start this way and then move into big­ger digs have high­er suc­cess rates.