How many owners avoid a going-out-of-business sale in their first 10 years?

Answer: 34.6%

Questions:

• What factors do you think contribute to the high failure rate of businesses in the first 10 years?
• Are there industries you think would be more successful in staying in operation? If so, which ones and why?
• What are some key things you think a business can do to avoid having to shut down?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom. 

Behind the numbers (NerdWallet):

"Starting a business isn’t for the faint of heart. Around 20% of new businesses close within a year, according to data from the Bureau of Labor Statistics. Though most businesses will find short-term success, only a handful have long-term staying power. BLS data showing the number of businesses that opened in March 2012 reveals that 34.6% of those businesses remained open in 2022, meaning just shy of 35% of new businesses made it to their 10th anniversary."

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.