General Startup Statistics You Need to Know

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Startups are often considered risky business ventures. It’s no wonder that most of them fail within the first year of operation. However, what happens to the ones that survive? How much do startups and their founders earn? How long does it take for a business to become profitable? Read our article and explore general statistics about startups.

Startup statistics – index:
Operating revenue vs. operating profit
General startup statistics
How much do startup founders earn?
Is it normal for a startup to lose money?
Summary
Operating revenue vs. operating profit
Startup profits are a difficult and delicate subject. However, it still needs to be addressed. Startups, after all, are young businesses that place a strong emphasis on rapid growth in sales and profits. How do you determine a startup’s capital? First of all, you should know the difference between operating revenue and operating profit. These are important accounting terms that will help you estimate your startup’s real profits.

Operating income is the total amount of money generated by your belize whatsapp number database before any taxes and expenses are deducted. This is the money that flows into your startup and comes from its core operations. Operating profit , on the other hand, is the profit your business makes after subtracting its regular costs. It’s helpful to be familiar with these concepts when analyzing general startup statistics.

General startup statistics
Various analyses and surveys show that only 40% of startups actually make a profit , and this should come as no surprise, since only one in ten of these organizations manages to survive in the long term. Only 30% of startups survive their tenth year of business. Another 30% of young companies break even, and the rest are not profitable at all.

So how much can a startup make? Well, it’s not all sunshine and rainbows. Most startups don’t make money for a long time. If they do, they usually make less than $100,000 per year. Only 9% of startups generate more than $1 million in revenue .

startup statistics
How much do startup founders earn?
Many people think that startup founders don’t make any money, but simply use their personal income sources to grow their businesses . In reality, there are many ways to generate income. Most commonly, startup founders make money by selling products or services to customers, offering advertising space on their websites, and accepting venture capital investments in exchange for equity.

Of course, startup founders’ earnings vary greatly. Some business owners make no money at all, while others enjoy high salaries. 66% of startup founders in Silicon Valley earn less than $50,000 per year, and in Europe the percentage of founders with such earnings is even higher. For example, the average annual salary for startup owners who raised less than $500,000 is $35,529. If a business raised between $5 million and $10 million, startup owners would earn $62,150 per year.

Is it normal for a startup to lose money?
Most startups suffer losses in their first year of business. But is this always a problem? It turns out that this isn’t necessarily a bad thing. Just because you make a loss doesn’t mean you’re destined to fail . Startups typically take three years or more to become profitable. It’s no secret that companies focused on rapid growth burn through cash incredibly quickly. There’s nothing wrong with that, as long as the path to profitability has been clearly mapped out.

startup statistics
General Startup Statistics – Summary
Startups are organizations that cannot be valued based on their current profits or losses. Their valuation depends on their growth prospects. Just because your startup is not making much money right now doesn’t mean it won’t become a source of income in the near future.