Running a small business is not for the faint-hearted. It takes dedication, not to mention some surprising knowledge about the industry to survive and flourish. This article aims to share 10 surprising small business facts you need to know.
1. Small businesses are a significant contributor to the economy
Small business is big business in terms of economic growth. They account for almost all American businesses, and they employ almost half of the entire workforce.
2. Most small businesses start with personal savings
Starting a business can cost a lot of money, but small business owners usually fund themselves by using personal savings. Some might also take out loans, use credit cards, or seek out angel investors for support.
3. Business location choice can affect success
The location of the business is more important than you might think. Factors such as proximity to suppliers, transportation accessibility, competition, and overall cost of living can affect the business’ economic success.
4. Health care benefits can be challenging for small businesses to offer
Small businesses can struggle to provide health care benefits to their employees due to the high cost of premiums. Approximately 60% of small businesses skip offering healthcare benefits to their workers.
5. Cash flow is vital to small businesses
Cash flow can make or break a small business. Unpredictable cash flow is the most common cause of small business closure. Cash flow statements help small business owners track money coming in and out of the business.
6. Generating leads is not an easy task
Securing business leads is not as simple as it may sound. Only 1-2% of website visitors convert into leads on first-time visits. Small business owners should develop clear, valuable, and enticing website content and continually improve their lead generation strategies.
7. Customer satisfaction is the key to survival
Keeping customers happy is crucial to the success of any small business. It’s a known fact that it costs more to attract a new customer than to keep an existing one. Maintaining good relationships with customers through effective communication, quality products, and excellent services can help sustain the business.
8. Technology can enhance small businesses
Technology is no longer a luxury, but a crucial part of small business operations. Technology can help automate and streamline business processes, such as marketing, customer communication, and bookkeeping, which saves valuable time and resources.
9. Success is not overnight
Small business success takes time and effort. Over 50% of small businesses fail within the first five years. Small business owners should continually make improvements, adjust their strategies, and stay focused on their goals.
10. Networking can be invaluable
Networking with other small business owners can provide support, advice, and opportunities. Joining business associations, attending conferences, and actively participating in online communities can help build relationships and provide your business with more exposure.
Conclusion
Small business owners face many challenges, but they are also full of potential and offer great opportunities. Understanding these surprising small business facts can help owners make informed decisions, stay competitive, and achieve long-term success in their industries. By staying focused on the right strategies, even the smallest business can thrive.
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