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:
- People. If you can afford to hire employees, do it. Well-staffed businesses have better survival rates than solo operations.
- Startup capital of at least $50,000. Not easy, perhaps, but businesses that start with less have higher failure rates.
- A college degree for the owner. Better yet, enroll in a college-based entrepreneurship program and learn the ropes before you get started.
- 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.