Recent small business statistics released by the SBA in 2007 are pretty discouraging. It is estimated that only 44 percent of new small businesses succeed past their first five years of operation. Maybe the numbers would be more favorable if entrepreneurs had more information about starting a small business prior to taking the plunge.
Financing
When you are in the process of starting a small business, one of the first concerns is how you are going to fund the initial expenses. You need to make a down payment on office or store space (except in the case when you will be working from home), buy your products, hire people, order equipment and pay for the various other items and services required to get things moving. Even the application to receive a business license usually costs money.
Many people choose to either use their own personal funds or use a credit card. Others look to small business loans to help start up their new business (see Resources for a link regarding SBA loans).
Marketing and Advertising
An airtight marketing and advertising plan is crucial to any new business start up; if you fail here the business idea, no matter how remarkable it may be, is likely to crash and burn. The best advice for any new business owner is to identify the target customer, spend a little bit of money on various advertising vehicles at first, see what works, and then expand from there.
Risks and Challenges
The idea of starting a small business seems so romantic at first. You have visions of being your own boss, calling the shots, and making lots of money from your great business idea. But the reality is often much different. Most new business owners don't break a profit until after the second or third year in business, if at all. In the meantime, they struggle to make ends meet and attract new customers.
Financing
When you are in the process of starting a small business, one of the first concerns is how you are going to fund the initial expenses. You need to make a down payment on office or store space (except in the case when you will be working from home), buy your products, hire people, order equipment and pay for the various other items and services required to get things moving. Even the application to receive a business license usually costs money.
Many people choose to either use their own personal funds or use a credit card. Others look to small business loans to help start up their new business (see Resources for a link regarding SBA loans).
Marketing and Advertising
An airtight marketing and advertising plan is crucial to any new business start up; if you fail here the business idea, no matter how remarkable it may be, is likely to crash and burn. The best advice for any new business owner is to identify the target customer, spend a little bit of money on various advertising vehicles at first, see what works, and then expand from there.
Risks and Challenges
The idea of starting a small business seems so romantic at first. You have visions of being your own boss, calling the shots, and making lots of money from your great business idea. But the reality is often much different. Most new business owners don't break a profit until after the second or third year in business, if at all. In the meantime, they struggle to make ends meet and attract new customers.
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