Small business is vital to the economy. They create more jobs, account for 43% of the GDP, and make up 99% of all businesses in the United States. But they also have limited resources and are more susceptible to market pressures. That’s why it’s so important for small business owners to understand their unique challenges and find the information and support they need to grow. From important definitions to expert growth tips, this guide covers everything you need to know about small business.
A small business is a privately owned company that has less revenue and fewer employees than larger businesses. Small businesses are also more likely to build closer relationships with their customers. In addition, they can choose to structure their business as a sole proprietorship, partnership, LLC, or corporation. Choosing the right structure can impact your taxes, liability, and ability to grow. It’s also important to note that meeting the Small Business Administration (SBA)’s definition of a small business may open you up to funding and government programs.
The key to a successful small business is constant innovation. You must be able to look at your business from a customer’s perspective and think of new ways to make it better. Otherwise, your competition will take advantage of your inertia and catch up. Even large corporations like Blockbuster Video, Kodak, and Borders Bookstore suffered from becoming too comfortable with their position in the market and ignoring innovation.
The Small Business Administration provides tools and resources to help you succeed in your small business. To start, review the SBA’s Small Business Size Standards to determine if your business qualifies as a small business. Then, check out the SBA’s 10-step Business Plan to get started on your path to success.