Discover more from Overcoming Bias
The economist Scott Shane, in his book “The Illusions of Entrepreneurship,” … says … failed entrepreneurs … violate all kids of established principles of new-business formation. New-business success is clearly correlated with the size of initial capitalization. But failed entrepreneurs tend to be wildly undercapitalized. The data show that organizing as a corporation is best. But failed entrepreneurs tend to organize as sole proprietorships. Writing a business plan is a must; failed entrepreneurs rarely take that step. Taking over an existing business is always the best bet; failed entrepreneurs prefer to start from scratch. Ninety percent of the fastest-growing companies in the country sell to other businesses: failed entrepreneurs usually try sell to consumers, and, rather than serving consumers that other business have missed, they chase the same people as their competitors do. The list goes on: they underemphasize marketing; they don’t understand the importance of financial controls; they try to complete on price.
More here. But don’t worry, you are the exception; none of these rules apply to your business.