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The Myth of Business Failure

The following is a guest blog post by Dr. Matthew G. Kenney…

We often hear that 80% of small businesses fail. However, did you know that there is no valid or reliable data to support this statistic? While this myth is widely cited, the actual success rate of new ventures, according to at least one scholarly source, is approximately 50%. About 28% of new ventures closed voluntarily and only 18% left outstanding debt.

Mark Twain told us “facts are stubborn, but statistics are more pliable”, and he was entirely correct. So then, is the failure rate for businesses 18%, 50% or 80%? Does it really matter? If you are thinking of starting a business why is the failure rate of other businesses relevant?

Statistics are important and we should use them as part of our decision making process, but statistics pertaining to small business success and/or failure may not be reliable. The majority of businesses in America are sole proprietorships and their closure rates are not closely tracked by the government. Some entrepreneurs will close one venture to pursue another, or close a business to accept a job offer. I once closed a consulting business to accept a position as VP of Operations for a venture capital funded start-up. Should I consider that business a failure? A statistician would…I wouldn’t.

What is more relevant than statistics is how you define the word failure. One of the biggest differences between entrepreneurs and employees is that each group defines the word failure differently. To most people failure is viewed as the inability to accomplish a goal. To entrepreneurs, failure is defined as an unwillingness to try and reach a goal. Entrepreneurs focus on the process, not just the end result. A project or venture that isn’t profitable isn’t viewed as failure, rather an investment. Money and time spent is viewed as tuition, not a loss. If you agree with this view self-employment may be for you.

Dr. Matthew G. Kenney is president of Kenney College Graduate School of Global Entrepreneurship, which offers a MBA with an entrepreneurship specialization. He is the author of two books and has been published in peer-reviewed journals in the areas of marketing, management, technology and entrepreneurship. For MBA program information please visit www.kenneymba.com.

The Best Jobs by Growth Potential

With over 100 recession proof careers covered in my book it can be hard to determine the best of the best. I’ve tried to make it easier for you with this handy chart. Here are the top twelve recession proof careers by anticipated job growth. The data presented here is based on the U.S. Department of Labor statistics.

Top 12 Recession Proof Careers by Growth Potential
1. Personal and Home Care Aid 51%
2. Personal Financial Advisor 41%
3. Computer Software Engineer 38%
4. Computer Scientist and
Database Administrator 37%
5. Substance Abuse and Behavioral
Disorder Counselor 34%
6. Social and Human Services
Assistant 34%
7. Gaming Surveillance Officer 34%
8. Dental Hygienist 30%
9. Computer Systems Analyst 29%
10. Gaming and Sports Book
Writers and Runners 28%
11. Physician Assistant 27%
12. Physical Therapist 27%

What is a Recession Proof Career?

People who want to read my new book often ask me what exactly constitutes a recession proof career? Let’s take the words one at a time. Then we can combine them into a basic definition.

Recession: a general downturn in the business cycle or slowdown in economic activity lasting over a sustained time period.

Proof: a resistance to or resilience against certain trying conditions.

Career: a profession or field for which one trains and progresses over time.

Okay, we’ve got the words down as standalone terms. Now let’s put it all together. Basically, a recession proof career is a profession resistant to slowdowns in economic activity. Now that you know what the phrase means… are you currently working in one?

How Do You Know if Your Career is Recession Proof?

The following is a ten question quiz that can tell you whether your career is on the upswing or downswing. Answer the questions honestly and you’ll soon know if your career is recession proof or not:

Question #1: Do you currently work in the healthcare, education, green, government, or defense industry?
A) Not even close
B) Your industry is related to one of these industries
C) Yes, you work in one of these industries

Question #2: Do you work in a field experiencing outsourcing?
A) Yes, many jobs around you have been outsourced
B) There are outsourcing rumors but it hasn’t happened yet
C) Outsourcing is not on the horizon for your field

Question #3: Has your field suffered major layoffs in previous economic downturns?
A) Yes, jobs are lost every time the economy sours
B) There have been some layoffs, but many folks kept their jobs
C) No, jobs have held steady in good times and bad

Question #4: Are you reading anything online or in print indicating your field may be in trouble?
A) Yes, stories abound of bad times ahead for your field
B) A few stories, but nothing definitive
C) You haven’t seen anything negative about your field

Question #5: Does the U.S. government show any signs of investing development dollars in your industry?
A) No, the government has no plans to invest in your industry
B) You’re not sure if the government is investing in your field
C) Yes, billions of dollars are going toward your industry

Question #6: Are you in a career where your skills could easily translate to a related field?
A) No, your skills are specialized to only your field
B) Your skills could translate, but it’s not a simple transition
C) Yes, your skills translate well in multiple industries

Question #7: Do you work in an industry where foreign competition is eroding your company’s market share?
A) Yes, your market share has been in steady decline
B) Foreign competition is a concern, but not a major one
C) No, your market share has held up to foreign competition

Question #8: Do you work in an industry where jobs are increasingly going to lower-paid, immigrant workers?
A) Yes, you are seeing immigrant workers take over many jobs
B) Some jobs are going to immigrant workers, but not many
C) No, the immigrant population is not taking on the jobs

Question #9: Do you work in an industry where jobs are increasingly getting automated?
A) Yes, many of the jobs in your field are getting automated
B) Some jobs are now automated, but others are not
C) No, automation has not negatively impacted job prospects

Question #10: How are changing demographics in the U.S. population impacting your industry?
A) Demographic changes will negatively impact your industry
B) Demographic changes won’t help or hurt your industry
C) Demographic changes will positively impact your industry

Okay, now for the results. See how many of your ten answers were letters “A,” “B,” and “C.” If you answered “A” for the majority of the questions, then your career is anything but recession proof. In fact, quick, decisive action may be necessary to course correct. If you answered “B” to many of the questions, then you sit somewhere between a recession proof and at-risk career. There are some facts in your favor and others you should pay attention to if you want to keep your career on track. Finally, if you answered “C” in most cases then you’re in great shape.

Do You Have a Recession Proof Resume

So how does your resume stack up against the competition? Would you get the gig or get passed over? Would you get promoted or demoted? Would you get pink slipped or slip past pink? Let’s not leave these questions to chance. Here’s a ten question quiz that can tell you exactly where you stand. These questions are geared for folks who work at companies. But if you are self employed or own a business, you’ll still get the idea.

Question #1: How much experience do you have in your industry?
A) None at all
B) Less than two years
C) Three to five years
D) More than five years

Question #2: How long have you been in your current role?
A) Not working right now
B) Less than six months
C) Six months to two years
D) More than two years

Question #3: How long have you been at your current company?
A) Not working right now
B) Less than six months
C) Six months to two years
D) More than two years

Question #4: Do you have the certifications required for your job, company, or industry?
A) You’re lacking the required certifications
B) You’re in the process of getting certified
C) Yes, you are fully certified
D) No certifications required

Question #5: Do you have the educational degree typically required for your job, company, or industry?
A) You’re lacking the education
B) You’re in the process of earning the right degree
C) Yes, you have all the degrees necessary
D) No educational requirements for this career

Question #6: What rating did you get at your last performance review?
A) Your company doesn’t do performance reviews
B) You received a below average rating
C) You received an average rating
D) You received an above average rating

Question #7: What has your boss or leaders told you about your long term potential at your company?
A) You’ve never heard anything about your potential
B) You’ve been told your performance needs to improve
C) You’ve been told you’re a solid contributor
D) You’ve been told you’re a high performer with potential

Question #8: How well do you know the computer programs and software needed to perform your job?
A) Computer skills are irrelevant in your role
B) You could definitely brush up on computer skills
C) You’re pretty comfortable with most programs
D) You consider yourself an expert

Question #9: What role does networking play in your life?
A) You never attend industry events and know very few people who do your job at other companies
B) You attend an industry event here and there and know a few people who could help you
C) Your rolodex is fairly full and you do your best to get to events and meet new people when your schedule permits
D) You’re a busy beaver, attending lots of industry networking events, collecting business cards, and staying in touch

Question #10: How many skills do you possess that could be easily transferred to another job in a new industry?
A) None of my skills are transferrable
B) Maybe one skill could transfer to another role
C) Two or three of my skills could transfer
D) Most of my skills would transfer easily

The more you answered “A” the more you need to learn about what it takes to recession proof your resume. The more you answered “D” the more you can smile knowing your resume is recession proof. Lots of “B’s” and “C’s” probably mean you’ve got some good stuff and some holes in your resume in which case we need to round you out a bit. Lots of “E” answers mean you have trouble following directions.

Keep Your Ears Open

It’s amazing how one simple conversation can change the course of your career… but only if your ears are open to listen. You see, too often we’re focused on just what matters to us in the moment. We simply can’t see beyond our current struggles, goals, and ideas to consider what could be next.

The next time someone starts a conversation with you on a seemingly irrelevant topic, give it a good listen. On the surface you may have little to no interest, but peel it back a layer and an unexpected connection just might emerge.

It just happened for me this week and it may have changed the course of my career trajectory forever. So keep your ears open, don’t discount people and conversations too soon, and your life just may travel in new and interesting directions.

Just Push Play

So I’m doing a new workout this Spring… P90X. For those of you who don’t know anything about the workout, it stands for Power 90 Extreme. It’s a ninety day workout including weight training, yoga, plyometrics, and even kickboxing. How’s that for some muscle confusion.

Why do I bring up the workout? Not because I want to brag about my efforts to get in shape before the next bathing suit season. Rather, it was something the video trainer, Tony Horton, said on one of the workouts. He said… “Don’t decide everyday if you’re going to do this program. Decide once, then just hit play everyday without thinking about it.”

Talk about some simple advice but something many of us don’t follow in life. Instead we revisit decisions constantly and undue progress. So I’m vowing to put Tony’s advice into other parts of my life… my work, my health, and my friendships. From now on, when I decide something, I’m good to go and I’ll just push play from there.

What Will You Give Up?

One of the biggest learnings in a working less, earning more life is that you can’t have it all. Sure you’ll get more free time than you ever imagined and you’ll find you can earn twice your old income in half the time. But that doesn’t mean you can have it all.

You can’t still think you’ll be a parent 100% of the time, a worker 100% of the time, a workout buddy 100% of the time, etc. It’s the balance of it all that makes the working less, earning more life really click.

Whenever I zoom out to review those 168 hours per week, I not only think about how I spend my time. I also look at which hat I want to wear when. That’s how I balance it all without mistakenly believing I can have it all.

Recession Proof Careers Hits Bookstores!

Okay, I’ll admit it, I’m excited for the release of my third book today. My career began with Dating, Inc.: How To Recruit, Select, and Retain the Right Man for a Relationship. Then it was the Complete Idiot’s Guide to Working Less, Earning More. And today, The Complete Idiot’s Guide to Recession Proof Careers hits your local bookstore.

Check it out if you’re looking to recession proof your resume, build transferrable skills, stay nimble in any economy, or simply want to read about the 100+ recession proof careers poised for growth for years to come. Thanks everyone for your support along the publishing journey!

Listen To Your Body

My life is all about productivity… getting more done in less time to achieve my working less, earning more agenda. Still, I do have days where I just don’t find the energy… particularly with a newborn in the house impacting family sleep patterns.

I’ve come to realize that despite my desire to crank out maximum work in my working slots, if my body says I need a rest, then I should take it. There’s nothing worse than trying to crank out great work when you’re exhausted… only to produce sub-par work and feel guilty about it.

So the new me is not afraid to take a nap when my body calls for it… especially if it means the work when I wake up will be that much better. So stop fretting a little shut eye midday… it just may be the perfect antidote to lackluster performance.