Statistics & Resources for Starting a Small Business
The beginning stages of wanting to start a business can be overwhelming. Where do I start? What resources do I need to begin? What are my odds of failure?
According to the U.S. Bureau of Labor Statistics, 20 percent of small businesses fail within their first year. By the fifth year, that number increases to 50 percent.
Studies also reflect that 90 percent of business failures were due to the owners' lack of skills or knowledge of understanding how to succeed, to begin with.
Understanding the success rate isn't meant to discourage anyone from starting-
Understanding the success rate is only meant to inspire. By knowing the odds, one has the advantage of implementing what's needed to overcome obstacles. It also proves that using the various resources available to you is imperative when launching your plan.
"To reflect on the reasons why new businesses fail, it’s safe to say that it’s a combination between customer-centric reasons as well as lack of resources, which are the building blocks of having a successful business." -Oberlo Small Business Statistics
The United States Small Business Development Center concludes that nearly all of the small businesses who get assistance from an established source of expertise were still in business after five years. There are a number of programs out there that will provide free resources and guidance to beginning your entrepreneurial journey.
But where does one begin?
The Small Business Administration's website is a great landing spot for guidance. This breaks down step by step what you would need to get started such as conducting market research, funding for your business, picking your location, and business structure to name a few. These are topics you can also learn in our full Entrepreneurship Program, which is the building block to a successful venture. If you are already established but need to refresh your skills to continued success, it's a useful resource for you as well. We also recommend our Business Plan In A Day program first which is always free and is offered monthly for you to jump in any time. This one day workshop is meant to help entrepreneurs build confidence when starting out and to steer them in the right direction in the beginning stages.
Another useful site is utilizing your local governments' resources, for instance, if you live in Washington State, the Business.Wa.gov website has an insurmountable list of tools for all stages of those choosing to be their own boss.
Observing other businesses in your field and keeping a close eye on what they are doing to succeed will be a huge help to get started as well. Following the hashtags that pertain to a specific business, type is a great way to study and take note of their actions.
"44 percent of local businesses said they depend on social media to generate brand awareness, and 41 percent depend on it to drive revenue. Almost 90 percent of marketers say their social marketing efforts have increased exposure for their business, and 75 percent say they've increased traffic." -Small Biz Trends.com
The good news is there are so many programs and organizations rooting for your success, there is a massive amount of support and tools at your disposal to be sure you get started, stay afloat, and carry on through the years to come.