Most companies fail, and fail fast. The official statistics show that 50% of new companies fail within the first five years. However, I am inclined to believe that the numbers in fact undercount the true failure rate.
What can new business founders do to increase their chances of success? They can start a business in a field where they have experience, knowledge, and connections. If founders don’t have practical experience, they will make many unnecessary mistakes, wasting both time and money during the learning process. Connections are also equally important. Identifying and establishing credibility with clients takes time if one does not have an existing relationship. Those that start a business in a field where they have experience, have a huge advantage over those that are trying something completely new.
In 2000, I became the first employee at a forex brokerage firm. The firm allowed individuals to trade currencies (forex) similar to the way E-Trade allows individuals toRead More »from How to increase your odds of business success: Practical advice from founders