Did you know that:
- History and statistics tell us that, on average, only 1 in 10 startups survives in the long term. In other words, most ventures fail
- According to Verne Harnish (1), author of "Scaling Up", only 4% of all companies in the United States reach US $ 1 million in sales. In other words, the other 96% of companies never sell more than US $ 1 million
- According to Walker Deibel (2), author of “Buy then Build”:
- 99% of ventures fail completely or never become significant, both financially and in terms of the impact they produce on society.
- Most entrepreneurs dream and bet to be the next Apple or Microsoft. Both companies started in their founder's garage and grew into the global giants that they are today. But it is also true that the stories of Apple and Microsoft are not so common. How many Steve Jobs and Bill Gates are there in the world? Not many!
- You might think that these failures only happen to small startups and those that do not have enough capital, or that do not have a strong investor behind them. But the truth is that, according to Shikhar Ghosh, from Harvard Business School, 75% of the startups that have an Investment Fund behind them with hundreds of millions of dollars, also fail.
(1) Harnish, Verne (2014) "Scaling Up: How a few companies make it…And Why the rest don’t"
(2) Deibel,Walker: "Buy then Build: How Acquisition Entrepeneurs Outsmart the Start up Game"
So the question is, if you are an investor and you want to use your money to invest in a company,
Why risk it in a venture, if you know that your chances of success are slim?
There is a better option for investing your money: BUY an existing business! In the United States, buying an existing business has a 98% chance of success.
Are you interested in buying an existing company? Contact Us.
When you buy an existing business, you buy a running business and with it, a customer base, a history, a brand, a reputation, proven processes, etc.
All this you will have to create from scratch if you decide to start a business and that costs a lot of money, effort and work without guarantees of success.
Focusing on finding a company that's right for your skills and what you like to do is definitely an option that you can't help but explore if you want to make the best use of your investment and reduce the risk of losing it.