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  • Writer's pictureOnyeka Abengowe MBA, MS, CNMT, LGBH, CTC,CBN

Why you need to get clarity before starting a business

Updated: Sep 27, 2021

According to the U.S. Bureau of Labor Statistics (BLS) 2020 report, approximately 20% of new businesses fail during the first two years, 45% during the first five years, and 65% during the first ten years. Only 25% of new businesses make it to 15 years or more. Startups have an overall failure rate of 90%, with 10% failing within the first year. So, the question is, how is it that a significant percentage of businesses fail? Worse still, why do more businesses fail over time instead of growing and expanding? Many experts have suggested reasons they believe contribute to business failures.

Some of the top reasons include:

  • starting a business for the wrong reason

  • insufficient Capital

  • lack of Planning

  • inadequate market need