500,000 new businesses are formed each month - are you ready?

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Key New Business Statistics in the U.S.

Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty… I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.

Theodore Roosevelt, 26th President of the United States of America

It’s important to know that you’re not alone. Thousands of new businesses are started every day by people just like you – some experienced, some first-timers, but all dreamers and visionaries alike.

Entrepreneurship is engrained in American culturea virtue that embodies the American Dream in the spirit of exploration and innovation.

Incorporating your business is the first step to legitimizing your entrepreneurship. 

It says to everyone that you are ready to be taken seriously, that you are officially recognized by the state, and that you can do all the things that any other business can do.

Entrepreneurship is not all rainbows and butterflies, of course. 

Between the birth of your business and the pot of gold at the end of the rainbow is a difficult road, filled with unforeseen obstacles. 

Nothing is promised, everything is earned, and determination is the name of the game.

This page is dedicated to you, the newly formed entrepreneur, to those that have come before and seen success, and of course to those that have come before and failed. 

All have taken their fair shot, as will you, and regardless of the end result know that the dream alone is worth the effort.

The statistical information on this page and elsewhere on this site comes from third-party sources such as the Bureau of Labor Statistics, among others, and credited where appropriate. We do not guarantee the accuracy or recency of the data. No warranties are provided or implied.

There's no time like the present, a thousand unforeseen circumstances may interrupt you at a future time.

New Business Formation Trends Follow the Economy

New businesses are subject to economic fluctuations, just like their more mature and established business siblings.

Although, new formations tend to dip during economic downturns – such as the recessions of 2000 and 2008, pictured in the chart – the overall trend is an upward one. 

That is all to say that entrepreneurs are naturally more risk averse during economically difficult times, but the economy is just one factor. 

Don’t let an external force deter you from capitalizing on an opportunity you see, they won’t last forever.

15 minutes is all it takes, are you ready?

Launch your new business today for just $129 + state fees.

Someone is sitting in the shade today because someone planted a tree a long time ago.

Warren Buffett, CEO of Berkshire Hathaway

Over 70% of New Businesses Survive Their First Year

You’ll often hear cautionary statistics such as “1 in 3 businesses fail in the first year”, but it’s important to understand the data and not let it take away from your dream.

When we dig in to the Bureau of Labor Statistics data on Establishment Survival Rate, we find that new businesses are extremely resilient. 

Half of all new businesses survive through their fifth year – that’s a 50% chance of survival that you wouldn’t get with many other income generating investments.

Your odds of success depend on many factors of course so be diligent in your research, and execute well. 

Common New Business Questions

This is an important consideration for any entrepreneur, especially a first-time business owner.

Although there is no perfect time, you should always factor in your financial stability and your understanding of the market. If you don’t have enough financial stability to support you through the inevitable slow periods, then you won’t make it.

Be pragmatic too. If you are selling luxury goods and the economy is in the middle of a recession, then it’s probably not a great time.

However, the biggest factor in timing is opportunity – if you see it, then take advantage of it.

According to the Global Entrepreneurship Monitor, 88% of new businesses in the U.S. are born out of opportunity rather than necessity. View the complete report here.

In short, not yet. You will always be up against the competition, but as a new business your primary goals first and foremost are solvency.

In other words, your business needs to be sustainable first, then you can worry about growth or going up against the competition.

Worrying about the competition too early can get you trapped in un-winnable scenarios like price wars, intellectual property disputes, and the like.

What you really need to focus on is finding your niche. Whether it’s service quality, subject matter expertise, marketing to an underserved demographic, or any number of value propositions and tactics – you need to find a model that your business can rely on.

It’s a common misconception that being an entrepreneur means that you have to give up on a career in the future. That’s just not true.

Entrepreneurial experience is formative, without substitute, and uniquely valuable – and it doesn’t really matter if you succeed or fail. Success is better, but the experience is valuable just the same.

Self-motivated, self-directed, big-picture-thinking employees are always in demand – in every field. 

Free Business Name Search

This is a complimentary free name search, we’ll respond via email with any findings. This doesn’t initiate or replace a corporate filing order. 

15 minutes is all it takes, are you ready?

Launch your new business today for just $129 + state fees.