Quixtar Myth: Small Business Failure Rate

Posted on 05. Nov, 2005 by Ty Tribble in Quixtar


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"95% of start up business' fail within 5 years."

Hear that before? I heard it said in practically every Amway - Quixtar Open Meeting I went to. Sadly, the statement is not even in the truth ballpark.

According the the Small Business Administration:

Two-thirds of new employer firms survive at least two years, and about half survive at least four years. Owners of about one-third of the firms that closed said their firm was successful at closure. Major factors in a firm’s remaining open include an ample supply of capital, the fact that a firm is large enough to have employees, the owner’s education level, and the owner’s reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own boss.

Ronald Reagan wisely advised, "Trust, but verify." That should be the mantra of anyone looking at Quixtar or other MLM business'.

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2 Responses to “Quixtar Myth: Small Business Failure Rate”

  1. ibofightback

    31. Mar, 2007

    Ty – it says "Two-thirds of new employer firms".

    It's only talking about companies that have employees. What's the data for businesses without employees, ala most quixtar businesses?

    [Reply]

  2. Ty

    31. Mar, 2007

    Better than 5%. = )

    [Reply]

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