The Reality of Starting Your Own Business
Chances are, if you’re reading this you are excited about starting a mobile coffee van business. But whilst owning a coffee van can be very rewarding, it’s important to remember that the success of your business relies on a huge number of essential factors. In fact, a large quantity of new Australian businesses fail within a few years.
The Reserve Bank of Australia’s 2017 “Small Business: An Economic Overview” shows that most small non franchised businesses in Australia will fail in their first few years of existence, and in particular:
- 60% of sole proprietor businesses fail
- 40% of 1-4 person businesses fail
- 30% of 5-19 person businesses fail
- 40% of small businesses that don’t go broke are still not profitable
So why do most start-ups fail within the first few years?
Most small businesses are started by people with a great idea, a great product and no experience. To be successful in any business, YOU need to have a complete understanding of the industry, or position yourself with a group of people who have that understanding.