What if we reduce the risk of entrepreneurship?
According to data from the U.S. Small Business Administration, the U.S. government agency charged with overseeing small business development in the country, about 20 percent of start-ups fail within the first year. After five years, nearly 50 percent of businesses are no longer in operation, and only 25 percent of businesses survive beyond 15 years..
This statistic takes into account all types of businesses. For the most innovative, such as start-ups, it is normal to approach 90% closure rates within the first five years.
Do you want to keep reading after all that?
Of course, you do.
Because you are an entrepreneur. Or you will become one very soon.
And those of us who are like that can do anything and are very positive. We still believe that we will be able to join the select club of successful entrepreneurs.
As every soccer coach says after a bad season or after never winning on a rival's field, "statistics are there to be broken". And that's exactly what we want to do at Sportmadness and what we set out to do when we launched our franchise model.
We do not seek to do the impossible, i.e. to guarantee success, but rather to do everything we can for what can be accomplished; to reduce the risk of failing for entrepreneurs wishing to start a business.
We emphasize that launching a franchise does not guarantee success and never will. If this were the case, it would be worth millions of euros or even be unattainable. Who would want to sell the chicken that produces golden eggs? This does not even happen with the biggest and most powerful franchises in the world, which have high closing rates.
Why does a franchise help me reduce my risk?
❌ The franchise will allow you to avoid the mistakes that others have already made. All the mistakes? Not all of them, but many of them, or at least the most notable ones, and those that can cost you the most.
📈 You start by winning. Joining a franchise allows you to rely on an existing structure and use it to develop your business. You may think that you can create, for example, a sports events business on your own for 0 €, and yes, of course, you can. But sooner or later you will realize that... everything you have to build will cost you much more than what you would have invested when you started the franchise and you will also go much slower. And speed is a must in business today.
💡 The psychological factor is fundamental in starting a business. Not being alone and having professionals and community members who are similar to you, but who live in other parts of the world, by your side will give you the support you need in moments of doubt and the push you need to continue.
In life, sometimes by not losing, you're already winning. As Charlie Munger once said, "Tell me where I'm going to die so I don't have to go there. The entrepreneurial journey is complex and full of risks. If we can reduce them, even a little, our chances of being a successful business in the future will increase, and we will be closer to achieving our goal of generating franchisees with successful businesses.