To further speak on the idea of why so many small businesses fail, I want to point out the response Jeff Wettschurack gave to Part 1 of this discussion. Jeff, in part, says:

"They (the potential small business owners) get an idea, it makes sense, the numbers look good, and they run with it. The problem is in the passion, or lack thereof in this case.
As an employee, you can have bad days, weeks, even months, and the pay still comes. As a small business owner, every day has to be at 100%. And in order to do that, you have to have a passion for what you do. If it's not there, you'll shirk your effort from day to day. You won't follow through on little things. And eventually you'll be forced out of business.
Most will say that it was poor decision making, or a host of factors that led to a small business's demise. However, you'll find those same "mistakes" being made at a thriving business as well. So what's the differentiator......the person who wears that company's purpose like a shiny new watch that you have to notice."

I can't agree more. Every business startup has problems, some from lack of knowledge, some from poor execution, some from, let's admit it, just bad, regrettable decisions. But the businesses that make it have the drive, or "passion" as Jeff says, to carry them over these hurdles.

From my personal experience, I can tell you that if I would have jumped into a Liberty Tax franchise, which I looked into quite in depth a year or so ago, I would not have lasted past the buildout stage. i would have wanted out after a few months. The reason - I'm not excited about taxes, whether mine or someone else's. That doesn't mean Liberty Tax isn't a great franchise - it is. John Hewitt understands the tax business (co-founder of Jackson Hewitt, #2 in the tax service industry behind H&R Block, now owner of Liberty Tax, #3 in the industry and growing). He is passionate about that business. I am not and, luckily, realized before I plunked down a bunch of money and commitment to own that franchise. Athletic Nation is not as well established and formulated as Liberty, but I really believe in what we are trying to do for our customers. That is the passion Jeff so eloquently describes above.

Passion - you have to find it or you've made your startup that much less likely to succeed.