If you’re thinking about opening your own business, you should know the facts about entrepreneurship. Here are some things that can help you make a solid plan to start and grow your company.
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They Multiply Each Month
Every month, hundreds of thousands of businesses open. These are everything from crypto traders, such as OKX, to local convenience stores, so you’ll probably experience competition at some point.
They Are Plentiful
There are millions of small businesses. While many people are likely to end up shopping at large discount stores, there are plenty of other options, and many will choose to support local stores like yours.
They Create a Lot of Jobs
Millions of people work at small businesses. If you can employ some locals, you’ll be on your way to creating financial independence for your community and securing your hold in the economy.
Poor Cash Flow Causes Failure
The Survival Rate Is Low
Unfortunately, only about half of the businesses created will last five years. However, if you can make it that long, your company has a good chance of making it to ten years, which is the goal.
A Lot of Companies Close Yearly
That low survival rate is due to extensive closures each year. Between 8% and 9% of businesses will close each year.
The Goal Is To Last 10 Years
Approximately two-thirds of the businesses that make it to five years will survive ten years. So if the company can last that long, chances are, it will be something you can pass to your children and grandchildren.
It’s Good To Have a CFO
When you opened your business, you probably weren’t expecting to have a chief financial officer. However, more than half of the successful small companies have someone in charge of their finances.
It Does Not Take Much To Get Started
Most businesses are started with only about $10,000. You can get this money from your funds, private investors, loans, and other sources.
You Probably Will Not Make a Killing
While owning your own business can be very rewarding, you probably won’t make a killing. Unfortunately, almost 90% of people who own their own companies make less than $100,000 annually.
Most Have Few Employees
About three-quarters of private employers have less than ten employees. Therefore, you shouldn’t expect a large staff, especially not right off the bat.
Very Few Outsource Their Accounting
Less than one-quarter of small businesses outsource their accounting to a CPA. That means you can probably expect to learn how to do your company’s taxes yearly.
They Are Cyberattack Targets
Almost half of the cyberattacks that occur attack local companies. The Small Business Administration and other government agencies can provide resources to help secure your company, so it doesn’t undergo this type of theft.
To have a successful business, you need to know the facts. By remembering these, you can make appropriate plans to develop and grow your dream company.