It is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy.
In America eight out of ten small businesses fail in just their first year. Competition and lack of financing are two huge factors that lead to businesses failing. In 2009 more and more workers started to leave their more secure jobs to start their own business and become entrepreneurs. (Hannon 68) Over six hundred thousand small businesses were started, but that number means nothing if eighty percent of them (480,000) were doomed to fail in only twelve short months. (68)
Even though small businesses are a huge factor to boosting the economy in times of economic downfall, with their creation of decent paying jobs, the thought of them receiving help is often times pushed to the side. (Leonard 18) The success of ones’ business most times depends on the owners marketing abilities. (Arensmeyer 5) More importantly their ability to avoid making false claims, for that in the business world, is one of the quickest ways to get sued. (5)
Managing a business can be very stressful especially being that most times one would be making decisions that could lift or drive their business straight into the ground. (Arensmeyer 3) One of the most important things for any business owner to remember would be to always think about problems realistically. Meaning that one should think about what could happen and not with they would want to happen. (3) When most start businesses, they are completely unaware that mentors can be found, that are willing to assist with the startup of a business or any other questions that one might have. Organizations such as SCORE and the Small Business Association always help with the search for a mentor that has owned what ever type of business that needs help. (Hannon 69)
Before starting a business, one would need to go to a bank or some other financial institution for loans of some sort. When one goes to those places, they just can’t go empty handed, so most prepare a business plan. A business plan is a variety of things about one’s potential business including the type of business, the persons budget, etc. Some main components of the plan are the executive summary, a market analysis and a company description. (Panissidi 1) The strength of the business plan a lot of times determines how much one financing one can receive or if any at all. A business plan can have other uses and benefits other than its main use to obtain financing. A business...