The offsite construction industry is seeing an unprecedented number of new businesses entering the fray with innovative products and ideas but if the following statistics are right, how many of these will end up on the growing pile of failures?
Katerra was the big one everyone knows about but why did they and so many others either fail after launching or for that matter, failed to even launch? Having a huge pile of money from investors is absolutely no guarantee of success.
- 9 out of 10 startups fail (source: Startup Genome – the 2019 report claims 11 out of 12 fail).
- 7.5 out of 10 venture-backed startups fail (source: Shikhar Ghosh).
- 2 out of 10 new businesses fail in the first year of operations (source: Bureau of Labor).
The best and most successful companies out there appear to be the bootstrapped entrepreneur that has quietly been growing their business for years and suddenly they are an overnight success.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
To learn more about the Offsite Construction Industry, sign up for your free monthly issue of Offsite Builder, the Construction Magazine for Builders and Developers
