“90% of all businesses fail in 5 years!”

Networking at chamber events is fun. I get to meet new people, share ideas, exchange business cards, and learn what’s new in the world.

“What do you do?” was the question that came at me at just such an event yesterday from a middle-aged gentleman in a gray pinstripe suit.

I handed him my business card and gave him my elevator speech about ThinkSelfEmployed.com. I talked about my desire to help people who are unemployed start their own businesses.

He gave me his elevator speech and then came at me with both barrels.

“You know, Gil, 90% of all businesses fail in their first 5 years.”

Throughout the years, I’ve heard all kinds of statistics about business failures. Quite honestly, I don’t know how anyone could gather such statistics.

Someone starts a small business in his or her basement. They work at it quietly for a while and then pull the plug. How does anyone know they failed if no one knows they started?

How could that private in-the-basement attempt at entrepreneurship be seen, measured, or counted by any government or independent reporting agency?

Sure, businesses fail. We’ve just witnessed and watched as some giants with years under their belts failed… giants that you and I thought were rocks corporate of stability.

Whatever that percentage of failures… 90, 80, 70, 60, 50 percent, if 70% of them fail that means 30% succeed. Imagine, 30% of the people who try to start a new business actually succeed!

Then my thought went into a different direction.

I wonder how many people who start a new job today will be at that same job and working for the same company in 5 years.

Some will make it, be promoted, and watch their salary and success grow.

Others will be fired or laid off or downsized. I’m sure that a sizable percentage will determine that “it’s just not working out.” These people will move on… of their own volition… to try something else at a different place of employment.

What’s the difference? Do these people consider themselves as failed? Because they’re not likely to be at the same job in 5 years, does that keep them from accepting the position in the first place and trying their best? And if they happen to be laid off, do they experience the same stigma as someone who failed while starting a new business?

I think not. Most pick themselves up and start all over again.

I suppose a lot of people go looking for a “magic bullet” that brings with it a guarantee. “Use this magic bullet and your success will be guaranteed.”

I don’t think it works that way.

It was dark by the time I returned to my desk. But I felt compelled to take the time then to send an email to my new friend in the gray pinstripe suit. My email expressed my appreciation and gratitude for a great conversation, and my hope that we’d meet again at future chamber events.

Then I concluded, “If I can help even a fraction of the members in my From Unemployed To Self-Employed program find success in a business of their own, that would be monumental. And who could ever argue with that?