If you want to start a new business, be it a consulting firm or artisanal bakery, there’s never been a better time. But, despite what the media may tell you, starting a small business isn’t easy. It takes a lot of hard work and resilience to build a business that makes a profit and stands the test of time.
While a successful small business may be built on the talents of an individual, it also requires the cooperation and collaboration of many individuals who share a common goal of making a small business thrive. It’s not surprising that the most common reasons for small businesses to fail are lack of funds and poor management.
A small business can be structured in a number of ways, from sole proprietorships to corporations. However, in order to qualify as a small business for government contracts and funding, a small business must meet certain size standards established by the U.S. Small Business Administration (SBA). These size standards vary by industry.
In addition to having a strategic plan for market expansion, a small business should have a financial plan to help it weather unexpected expenses. That’s why it is important for small businesses to have access to credit, whether in the form of a business bank account or a business credit card. In addition, small businesses should consider obtaining business insurance, which can include general liability, workers’ compensation and a business owner policy.
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