Startup Success Stats

2018-02-22 - By 

We often hear that 9/10 businesses fail within the first 18 months. We can agree that’s really not the most motivating statistic!

But, thank you for bringing up the subject because launching your startup isn’t investing in a lost cause (I speak from my personal experience at Linkilaw).

  • A startup IS profitable

If you had any doubt, YES! a start-up can be profitable! Studies showed that “the combined annual turnover for SMEs in 2016 was £1.9 trillion”40% of small businesses are profitable, so running a business more than 18 months is definitely possible! From my point of view, I saw hundreds of entrepreneurs successfully launching their business… and still operating!

  • “You should not work in startups”

One advice I regularly discuss with my team: DON’T listen to what your friends and family say about working in startups! In 2016, “total employment in SMEs was 16.1 million”. Also, “European startups create on-average 12,9 jobs in the first 2,5 years”.

  • A successful startup: a magical formula?

I’m sure other entrepreneurs out here will agree creating your own business is a long journey… But, it won’t change that “having two founders will raise 30% more investment, grow your customers 3 times as fast”.

As everywhere, some areas work better than others… so if you’re still wondering where to go, the highest success rates are in finance, insurance and real estate“58% of these businesses are still operating after 4 years”. It doesn’t mean that you cannot innovate anywhere else though!

  • And failure?

We won’t build a magical world without being realistic. If you do meet failure (because success isn’t an exact science in this case!), remember that “20% of founders who have failed on their first startup, succeed on their second”.

So, don’t take failure as a dead end, keep going and learn from your experiences! You will never know where the small idea coming to your head will lead you. I love this quote by Jeff Bezos (founder of Amazon) which really stuck with me, especially in moments of darkness that come with creating the business:

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying”.

Above all, I think that making your startup survive more than 18 months is about managing its journey and being sure that you operate gradually.

If you’re unsure of what you should do to launch a solid successful business and what is legally required at each step, Linkilaw offers a Startup Legal Session(It’s free!).


Original article found on Quora.

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