How To Start A Small Business

In today’s job market, more and more individuals are deciding to start their own small businesses. Small businesses account for forty-five percent of the U.S.’s private income and employ nearly half of all private sector employees. These businesses are also responsible for providing sixty to eighty percent of new jobs every year. According to the Office of Advocacy, there are currently 26.8 million businesses in the U.S. with small businesses representing 99.9 percent of these businesses. Small businesses produce thirteen times more patents than their larger competitors in terms of employees and are twice as likely to have their patents be in the small one percent cited each year. These businesses have a two-thirds survival rate of at least two years, with forty-four percent surviving of over four years. With these statistics, there is no wonder the number of small businesses is steadily on the rise.

Due to the number of opportunities, those people who feel they have a good idea for a small business are looking for advice and tips on how to become one of the successful ventures. The U.S. Small Business Administration (SBA) provides helpful resources to those individuals wishing to start a small business. Their suggestions on how to start a business are detailed in their website. They first suggest writing a business plan that serves as a guide stating how to build a successful business and steps to follow. After completing a business plan, the SBA suggests several steps to take in order to be successful, including finding a mentor, choosing the proper business structure, getting the proper licenses and permits, and selecting a location. Along with this suggested plan, the SBA also offers various resources and tools that can help build a better small business. These resources include access to libraries, monthly web chats, necessary forms, and locations of helpful resources in specific areas. The site also provides helpful services to use once the business is established that include financial assistance, contracts, disaster assistance, listings of laws and regulations, as well as online training to further education.

Once a business plan is created and the location is set, the owners will need to register the business. The Central Contractor Registration (CCR) is the primary source for individuals wanting to legally register their small businesses. Individuals should complete the Small Business Supplemental Page, which will then give the ability to award contracts and other agreements. Once they register, individuals will have access to all other vendors and can search companies based on size, location, abilities, etc. Owners should become familiar with all of the rules and regulations that pertain to them depending on the size of the business and the number of employees they have.

Since starting a small business can be a daunting and stressful task, there are organizations designed to help these individuals in any way they can. SCORE is a helpful organization that counsels individuals wishing to start a small business in the U.S. They offer various planning kits that lead to bigger profits and a better business plan. Their business tools section offers free resources that teach individuals the basics needed for small businesses as well as financial tools to help manage income. SCORE also has examples of forms like the nondisclosure statement and a twelve month sales forecast that help people organize and run their businesses more effectively.

Another helpful organization is HUBZone, which specializes in helping businesses in underutilized zones. They have certain standards that businesses must meet, but they help significantly with the start and success of a small business.

Although starting a small business takes a lot of work, there are numerous benefits to joining the market. With its high number of success rates, starting a small business is even better today. If individuals are able to set up a business plan and fulfill all of the government requirements, they have a good shot at starting a successful business.