[da1prophet]

Originally Posted by investorblogger

Actually long term success rates in Business are somewhat dismal. For example, tracked rates in the restaurant business:

In a study in Columbus, Ohio, Professor H.G. Parsa of Ohio State University, tracked new restaurants from 1996-1999. In the first year, 26% closed. Another 19% closed the second year, and 14% the third. Collectively, 59% of new restaurants closed those three years. By the way, the "failure" rate wasn't very different between franchised restaurants – 57% — and independent restaurants – 61%.

But then it goes on to say:

• First year: 85%
• Second: 70%
• Third: 62%
• Fourth: 55%
• Fifth: 50%
• Sixth: 47%
• Seventh: 44%
• Eighth: 41%
• Ninth: 38%
• Tenth: 35%

"Once you've hit five years, your odds of survival go way up," Birch said. "Only two to three percent of businesses older than five shut down each year.

Also, worth reading.

I will post more on my blog about this, I think. But my wife needs her pc back!

Kenneth

Your point is well taken, but I'd also suggest that the restaurant business has some unique challenges that might not be applicable to small businesses in general...