Starting your own business is more challenging than most people expect. Depending on the present market and trends, there are business lessons learned almost everyday by small business owners. Some even consider it an ongoing learning process.
While there isn’t one explicit formula to becoming a successful startup, paying attention to current statistics can prepare entrepreneurs for the journey ahead. Below are some must-know startup statistics in regards to success rates, failure rates, and trends to help you better understand what makes startups succeed.
Trends
Series A is a type of venture capital funding where investors provide the financial support that helps small business owners reach new heights. Before this process begins, most entrepreneurs fundraise from angel investors, friends or family members.
Investors want to see potential and results from your business before offering capital. TechCrunch reports companies raise close to three rounds before starting Series A funding. This means it’s likely new entrepreneurs must raise thousands of dollars on their own in the first few years. Some financial and lifestyle sacrifices may need to be occur if you’re committed to your startup.
Success Rates
Ever wonder what industry contains the strongest startups? Some would be surprised to learn that healthcare was the strongest startup industry in 2017. According to Inc., health care startups earned this title for their $36.3 billion cash inflows.
Many people attribute this success to startups that focused on women’s reproductive health. Recent trends revealed more women were tracking their fertility and purchasing organic menstruation products.
Entering an industry that has established success rates could increase your chances of evolving out of the startup stage.
Failure Rates
It’s classic economics. In order for a small business to success there must be a market demand. CBInsights revealed the top reason startups fail is misleading marketing demand ranking at 42%. This reveals the importance of conducting a SWOT analysis before entering the market.
Ask yourself: what consumer problems am I solving? Once you’ve identified a problem, conduct a survey that’s representative of the population. This can confirm whether your idea is worth pursuing.
Check out the Embroker infographic below for more statistics on failure rates, success rates, trends and more!
