Small businesses are an essential component of any local economy. They supply sorely needed tax revenues and employ the local workers. Hopefully the small business owner will become wealthy in the process.
Just How Small is a Small Business?
In recent published reports, any company that employs less than 500 workers is considered a small business. According to those numbers, small businesses go way beyond the Mom and Pop shops. In the US, small businesses account for 99.7 percent of all firms hiring employees. In addition, small businesses add to the new job growth and they contribute to the national economy. However, out of those businesses, seven out of ten last for two years or more and only about 50 percent survive for five years or more.
Tips for Opening a Small Business
It is still possible to start the old fashioned way, which was to find a location, print up business cards, put up a sign and wait for the first customer to come by. But real success comes with education, careful planning, understanding the industry and adequate funds to get you going in the right direction. For the best chances of success,a good business plan is a must. It will force you to think through the realities of owning your own business by taking a good look at overhead, expenses, potential sales and projected income.
Where to Go for Help
The Internet is a plentiful source for free seminars, courses and videos to help small businesses get started on a solid footing. This involves questionnaires that will help you determine if you're cut out for owning a small business. Are you a self-starter or do you need someone to kick you in the pants? Do you enjoy dealing with people or would you rather be working alone in a back office? How disciplined are you and how do you feel about taking risks? These are all basic questions that will help you make the plunge. Or not. If you do your homework and you still feel motivated to step out into your own small business, then put your best foot forward and enjoy the ride!