There are many surprising and not so surprising statistics about start-up businesses in Europe. Before you dive into starting a business or launch anything new in an existing business, you may want to take a look at some of these.
- 90% of all new products will fail. This could be for several reasons, but in the retail industry the majority fail because of a lack of proper research beforehand. Always make sure you know if the product will be well received and if there is a market for it.
- In all industries, 20% of businesses that fail could still be operating two and half years later if business owners had asked for proper advice from the outset. When a business is in its initial stages, good advice is priceless.
- 18% of first time entrepreneurs will succeed in business. Although at first glance this may seem like a good thing, it also means that 82% will fail. This is usually down to a lack of good preparation.
- Ecommerce businesses are failing in Europe because they have not learned to adapt to online trends. In 2011, 11% of UK shoppers used their mobile phones to purchase products and that number has been steadily increasing since. Ecommerce businesses without mobile friendly websites risk failure in the future.
- Businesses should not rely on marketing managers to maintain good budgets. 28% of all marketing managers base marketing budgets on gut alone. Gut will not get you very far when it comes to finances.
- Sadly, 50% of all small businesses in Europe will fail within the first three years but entrepreneurs then have a 20% success rate with their next venture.
As you can see, maintaining a business is a difficult job but with knowledge, research and determination, it can be done.