Don’t Quit Your Day Job

In an article that should have been titled ‘Don’t quit your day job’, but was instead titled ‘Why Businesses Fail‘, Mark Taw discusses starting a business, expenses, channelgesin the business and a bunch of solid suggestions at the end, not all of which I agree with.

I liked the article, it was well done, but it seemed overly pessimistic. It does, however, suggest a PicoBusiness approach to your entrepreneurial endeavors, so from that perspective, Huzzah!.

Some quibbles:

  • Few businesses would show the kind of income curve (especially for the first 75 months) that he suggests. In fact, it’s this assumption that makes his case seem so awful.
  • Starting a blog is not necessarily a way to help you focus on your business. Trust me on this!
  • His estimate that 1 out of 1000 businesses succeeds is lacking in statistical rigor, and doesn’t make sense. If people don’t bother to incorporate or note the businesses on their taxes, it is doubtful that they consider them anything more than experiments. Failures during experimentation are both expected, and important. They shouldn’t be lumped in with “hard core” entrepreneurial efforts.

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