Thinking of starting that side business? I always think it is a great idea to start a side business and have multiple income streams and not being solely reliant on your employer for all income.
But you will need to keep some information in mind when you do start your side business.
According to the Bureau of Labor Statistics, about 20% of small businesses fail within the first year. Now some of that could be after starting the person does not like being an entrepreneur and stops the business. But about 50% of small businesses fail by their 5th year in business. Some of that could be changes in economy, business planning or just running out of steam.
According to the SBA estimates, over 627,000 businesses open each year. But 595,000 also close their doors. So small businesses are a supplementer to the economy.
I have started a number of businesses myself, and have closed a few, of those that closed they ran their course of their natural life and so I closed them. Some were for other reasons.