The Bureau of Labor Statistics, a division within the Department of Labor, reported several weeks ago that less than 50% of small businesses successfully make it past 4 years of operation.  In fact, only 44% of business owners can “hack it” through 4 years of operation.  Nearly 65% of businesses successfully make it past the first two years.

More specifics can be found here.  Risk tends to be relevant to industry, at least for 10 specific, cut throat industries.  If you are considering starting a new business check out this list to determine how tough it may be for the first 2-4 years.  The Top 10 toughest (broad) industries are:  Transportation, Clothing Stores, Restaurants/Bars, Communications, Travel Agencies, Food Stores, Personal Services, Auto Repair, Trucking, and Money Services (Check cashing). 

Some key areas a new business owner should be focused on include product offering, market share, differentiation, sales & marketing, working capital, operations, budgeting, and fiscal responsibility.  A hidden gem for the previously mentioned industries can be earned by those savvy owners who leverage the Internet for lead generation and awareness.  National and local search engines as well as ad serving networks can be a major differentiator in new business generation and brand awareness.  Go the extra mile and seek out emerging opportunities if you business is in an overly-saturated industry.  Don’t become a statistic!

Once a business has reached a point of stability, a business valuation can be a very timely investment.  Not only will the business owner become knowledgeable about the fair market value of their business, but they can also begin to think strategically about growth and how to manage their business for increased value.  A business appraisal can identify key areas that drive value in a business, thus allowing that business to fill its own gaps and increase value accordingly.