In most businesses, it can be said that nearly every industry has a significant difference between the rate of new establishments and the survival rate. For example, in one province, there may be 100 new restaurants opening each month, but only 15 of them will survive the first year, and this number may dwindle to just 10 in the next 2-3 years. This is merely an illustrative example, not a referenced statistic.

You might observe this around you; when I mention restaurants, I include food carts and stalls renting space in markets. These represent new establishments because if they do well, they will expand, right? But for the most part, that’s not the case; many close down.

The survival rate for businesses is around 5-20%*. If we look at a 5-10 year span, even though this ratio may seem broad and you might wonder how 100 can reduce to just 5, we must consider that in some industries, trends come and go, leading to a surge of new entrants that quickly fade away, leaving hardly any behind, like the Furby toy, which still exists but is no longer in demand.

Some businesses, like video rental shops and photo studios, that have closed down may not be considered normal because they ceased operations due to external factors, such as new technology replacing them. However, if we look back to the era when video and film cameras were commonly used, it’s not much different. Typical businesses that are often cited as easy to start but quick to disappear include restaurants, coffee shops, spas, and clothing stores.

In some industries that the general public may not be aware of, such as my own training business, it’s no different. The general public may not notice new openings or closures, but as someone in the industry, I naturally pay attention and observe.

One thing that applies to both business and personal success is the thin line of whether you are still “caring about it” or just “still doing it”.

Simply continuing to operate a business might just mean you haven't run out of resources yet. But when it comes to personal success, it may be necessary to keep going for certain reasons. Ultimately, it’s just prolonging the inevitable and merely...

waiting for the right time to end it.

Many businesses start with full intention and preparation to “get started” but lack a clear method to “move forward” and know what to do next. When it comes time to continue, the ugly realities often emerge, and when faced with numerous obstacles, the question arises: “Are you still caring about it?” This is a question no one asks us, and no one thinks for us when we encounter challenges or unpleasant situations.

I want to draw a comparison to people's intentions, particularly regarding health awareness. When someone becomes health-conscious and wants to exercise, many are “ready to start” or initiate the process, similar to what I mentioned earlier—buying running shoes, workout gear, and perhaps even additional equipment like a watch or a heart rate monitor. But when they start running, they find it tiring and discouraging, and reasons to quit begin to surface.

It may seem like an inappropriate comparison since business is not a game, but believe me, many people envision the initial stages of their business without considering what comes next.

“Discouragement” is the first word, and it gradually becomes “real”. This negative aspect spreads more easily than the positive, which is normal, and it’s here that survival is determined.

If, at that moment “before” deciding to abandon or let go of something, you have the thought of whether you are still caring about it, or simply put, if you are willing to fight, you might just survive once more. Sometimes the answer might be that “you haven’t cared enough or taken it seriously”. Those who manage to sustain their businesses over time tend to have a strong enthusiasm for what they do. This inherent care makes it difficult for discouragement to set in, and they maintain a mindset ready to find ways to eliminate the ongoing challenges.

In the same industry where many emerge, the likelihood of encountering difficulties and obstacles is similar. However, those who remain are simply the ones who have managed to navigate through more challenges. The longer they stay, the more they must continue to face these challenges. It’s not that the difficulties ever cease. Those who quit simply no longer wish to endure the struggle...

This is the essence of being a survivor, where you don’t need to overthink strategies. Just consider how to keep surviving, and believe that good opportunities will come, or new ideas will emerge naturally, and it often turns out that way.

Appendix

Statistics from the Bureau of Labor Statistics pertain only to corporate businesses and do not include retail operations. My estimates may seem exaggerated, but it’s important to understand that most small businesses do not register as corporations.

  • 80% of small businesses survive their first year.
  • 70% survive beyond two years.
  • 50% survive past the fifth year.
  • 30% survive past the tenth year.

Statistics on reasons businesses fail from CB Insights:

42% offer products/services that no one wants.
29% mismanage cash flow and think losses are acceptable.
23% lack a suitable team; suitability is not the same as skill/partnership.
19% face market competition.
18% cannot set prices or control expenses.
17% have poor-quality products.
17% have unclear business models.
14% have poor marketing.
14% neglect customer feedback.

SOURCE: www.sirichaiwatt.com