Business First Family Business, Accounting, Finance, Investing, Marketing And Management
The choice to open a new small business can be daunting. New business owners should keep these small business statistics in mind when opening your own company. These 5 statistics will help you achieve long term success.
Success Rate
The most important thing to remember is that you are not destined to fail. 50% of small businesses will survive five years or more. With a glass half full attitude, that is a great statistic. To be part of the successful half, make sure that you have a strong business plan and enough start up capital. One of the top reasons small businesses fail is because of a cash flow problem. Know this going in, and plan accordingly to keep sales coming in the door using coupon management software. This will allow your small business to be successful.
Business Size
A small business is defined as a business with less than 500 employees. This statistic shows that there is room for growth within the structure of a small business. You have the ability to work completely alone or hire up to 500 employees while still reaping the benefits of being defined as a small business. Obviously, starting a local muffler shop will require a lot less overhead. While there is no need to rush into hiring, it can be reassuring to know that there is room for growth while still remaining in your comfort zone.
Confidence Breeds Success
Over half of small business owners say they are no longer stressed about the economy. Small businesses have been consistently growing and hiring as one of the strongest sectors since the recession. Over 50% of the workforce works for a small business. This is a huge factor in business owners confidence in growth. A strong economy makes this a great time to open your new small business.
Tax Rates
Small businesses can pay a tax rate as low as 15.1%. This is the lowest effective tax rate. This is a financial burden off your shoulders. Your small business is set up for success without the task of paying excessive tax rates. Unavoidable costs such as taxes can cripple a business. Factor this into your business plan to ensure long term financial gain.
Personal Investment
This statistic is extremely important when you consider where your startup capital will come from. 77% of small businesses start using personal funds. While it is possible to have investors and loans, personal funds are a leading channel to opening a small business. One of the benefits of using personal savings and funds is the avoidance of overspending on interest in the long run. Instead, you can get advances from most credit card processors. Be prepared to invest personal capital up front to successfully establish your small business.
It is a big job to open a small business, but the statistics are in your favor. Although a lot of work goes into a new small business, the small business sector is constantly growing. Pair this with tax breaks and a confidence in the economy and you are set up for success. Use small business statistics to confidently open your small business.
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