Three out of five new businesses will fold within 2 years. One of those two will usually make it to 5 years. This is what I have been taught for the past 20 years, and it is pretty much reality.

For start-ups you need to have operating capital, CASH. Don't put in your business plan that some of the money you want to borrow will cover your salary for the first year. If your business gets up and running right of the bat, save that money, don't go buy a new truck, or house, or toys. That cash belongs to your business, and if it grows rapidly, it will need that cash to expand.

I could go on.... I see smart plans, and very weak ones. Best business plan ever was 2 pages. Business plans are meant to be a living document, adjusting as time goes on.

Four stages of the business cycle.
1. Wonder! "Wow, it would be pretty cool to set up a vapor bar. I found this equipment on Ebay and bought it. We'll make a million!"

2. Blunder "Holy crap, this isn't going like I planned. Employees are a pain. B&O tax? Every where I turn there is another regulation..."

3. Thunder " Things are really clicking along. Been able to sell franchises to Andy's organic turkey turd vapor bar all over the west coast. Those suckers in CA really fell for it. This business is like owning my own printing press. Million? Billions Baby!"

4. Plunder "The thrill is gone. Time for me to retire. Wonder what I can get somebody to pay me for the business."