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Assessing your chances of survival

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Australians are a pretty entrepreneurial bunch. With a population of 25 million (give or take a few), almost 2.4 million businesses are alive and kicking. Impressive, don’t you reckon? Almost 10 per cent of the population run their own business.

But what about business survival? Are all these businesses fly-by-nighters, that start up one year and are gone the next? Not so long ago, a business coaching franchise advised a client of mine that 80 per cent of businesses go bust in the first year, and only 8 per cent of businesses survive five years or more.

Pish tosh. Business is tough, but it’s not a suicidal mission. The ABS reports that half of new businesses without employees, and 30 to 40 per cent of new businesses with employees, cease trading within the first three years. However, these figures don’t shed light on how many businesses chose to cease trading (as opposed to going broke or ‘failing’), and how many businesses actually experienced financial loss upon closing their business. In my experience, very few business people rate their overall experience as a negative one.

Small Business for Dummies

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