Don’t believe everything you read. Or hear time and again, even from really smart people. That goes double for some of the business “truths” we’ve all heard manytimes.
Just ask Lloyd Shefsky, professor at the Kellogg School of Management, and author of Invent Reinvent Thrive.After interviewing many of the most successful entrepreneurs in America and conducting careful research, here are some well-known business “facts” he thinks we all should question:
1. Starting a business is riskier than working for an existing business.
We all know this to be true, and yet…not necessarily. “Everyone uses the number, give or take, that nine out of ten new businesses fail,” Shefsky says. Butanalyzing Kaufman Foundation data on entrepreneurship, Shefsky learned that while 90 percent of new businesses may fail, only a small percentage fail within the first year. Instead, the failures are spread out over five to seven years. And that means we should take a second look at the “truth” that most new businesses fail quickly. [read]