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June 20, 2022 by: Miles

7Things Every Small Business Owner Needs to Know

Are you planning to start your own business? If the answer’s yes, chances are you’ve heard 50% of all new businesses fail within two years. That’s a grim statistic – and it’s not true.

But the risks of failure for a small business owner are real. According to the Bureau of Labor Statistics, 20% of new businesses fail in year one or two. At the end of ten years, only 25% are still operating.

Knowing what separates successful businesses from failures is critical as a new business owner. So let’s take a look at seven proven business tips.

1. Identify Your Business Opportunity

It’s easy to get excited about running your own business, but now’s the time to step back and take a deep breath. Is the opportunity solid? Do the numbers back it up? Is the market you’re looking at expanding? Or shrinking?

Do you have the skills, knowledge, and experience to run a business? Do you have the resources to sustain your business until profits come in?

2. Create Your Business Plan

Yes, you need to take the time to create a business plan. If you think you don’t need one, you shouldn’t be starting a business. Business plans are one factor that separates successes from failures.

A business plan is your roadmap. Without it, your chance of getting where you want to go depends on luck. And that’s not a good business strategy!

3. Solidify Your Financing

Depending on the type of business, the need for investment will vary. But, at a minimum, you should have at least six months of operating expenses in the bank. Cash shortfalls are the single biggest reason small businesses fail.

4. Name Your Business

What’s in a name? The ideal name separates you from a sea of competitors. A name becomes the base you build your brand on, and all of your marketing runs through and supports your business name.

The right name becomes a strength, part of your business strategy. It gives customers a reason to do business with you. And don’t forget to register and protect your name!

5. Choose the Right Business Structure

Sole proprietorship, partnership, LLC, corporation – each business structure has its own advantages and disadvantages. Taxes and liability exposure vary greatly with each type. Choosing a structure carefully when you start your business is critical.

6. Do It By the Book

Don’t forget to apply for – and get – all of the necessary permits and licenses your business needs. Be sure you know which local, state, and federal paperwork you must complete.

7. Added Insurance

Speak to an insurance professional and get the information you need to ensure you are fully insured. Starting a business is risky – and that’s what insurance is for. It can protect you, your employees, your property, and your intellectual property.

A Successful Small Business Owner

What separates the successful small business owner from the failures? It’s the ability to identify and capitalize on a business opportunity while paying attention to all the planning and details. No shortcuts!

For more entertaining and informative articles, please explore the rest of our website!

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About Us

I’m Miles, the editor and creator of this blog. I am a big nerd for anything tech related and I have also developed a big passion for photography and film. I discovered this passion after taking a course in school and ever since I have fallen in love with capturing everything from sports, to travel, to cars, and much more Read More…

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About Us

I’m Miles, the editor and creator of this blog. I am a big nerd for anything tech related and I have also developed a big passion for photography and film. I discovered this passion after taking a course in school and ever since I have fallen in love with capturing everything from sports, to travel, to cars, and much more Read More…

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