A survey done by the National Federation of Independent Business (NFIB) showed that record-breaking levels of small businesses are experiencing growing profits and, in turn, investing significantly more money into investing, hiring, and continued growth.
Small businesses are making a number of capital investments, such as purchasing new equipment and vehicles, as well as improving their infrastructure. Many other industry experts predict that small business startups will continue to rise.
Inspired by the success of their peers, entrepreneurs across the country are springing into action and starting their own businesses. But 30% of new businesses fail during their first two years. About half fail within the first five years.
These figures may seem intimidating. After all, starting a new business is expensive, and you may be putting up your life savings to get it going.
But you shouldn’t be afraid. If you’re interested in starting your own small business, here’s what you’ll need.
Starting your own business takes time. Time is precious. As an entrepreneur, you devote a lot of your time to the cultivation of your small business. You take time to create a business plan, strategize advertising efforts, hire talented employees, and more.
Many businesses fail within their first year because the owners can’t invest enough time in their business. In a market saturated with small business owners, the competition is fierce. Time is one of the most important things you’ll need to create a business plan that will make your enterprise successful.
As more entrepreneurs start their own businesses, the options for procuring capital increase as well. Among the more recognizable companies helping small businesses today is Lendio, whose mission is to help small businesses get the funding they need.
As a business owner, you’ll need enough cash to hit the ground running. If you don’t have the financial resources you need, you will have to be willing to take out a loan or get a credit card to start funding your business. If you have a solid business plan, the time you need to devote yourself to your business, and the courage to make it grow, you shouldn’t fear taking out a loan.
There are lots of things a small business loan can help you cover costs for:
- Advertising, including a website or business cards
- An accountant or accounting software
- Point of Sale processing equipment
- Licenses and permits
- Business insurance
- Retail, office, or warehouse space
- Legal fees
- Equipment including appliance, office furniture, and machinery
3. Patience and Confidence
Even the most ambitious entrepreneurs have seen their businesses fail. As a business owner, you need the drive to forge ahead, even in uncertain times. Often, when the going gets tough, business owners will crumble under pressure and let their businesses fail. Even if your situation isn’t particularly stressful, there are still business owners who lose patience and get burned out.
The bottom line is that as an aspiring entrepreneur, you need to be patient and confident. There may be things you have to deal with, such as stagnant profits, the loss of money, regulations to adhere to, and more. The overarching point is that staying in the game is worth it. Being patient and having confidence is what it’s going to take to make your business succeed.
4. Information and Research
As a business owner, you’ll need to be aware of what’s going on in the business world. You should stay informed about what’s going on in your industry as well as changing regulations or statutes. Make sure you stay compliant with these so you can avoid paying fines.
Another thing to research is market trends. You may think you have a brilliant idea, but unless you do research, there’s no way of predicting whether your idea will be successful. You’ll also want to research costs that you’ll need, such as raw materials, space, employees, and everything else that goes into running a business.
The Final Word
Owning your own business can be very rewarding. It requires a lot of investment but can be worthwhile if you stay strong, committed, and confident. Doing your research and working hard can help you become a self-made success.