Small business is the core of the American economy; without small businesses in America would be dead in the water. It is estimated that small businesses contribute over two-trillion dollars to the GDP. Small businesses have played a key role in helping make America the largest nation in the world, and are the backbone of the American economy. So, why is it that many small business owners do not want to invest in their business?
Many small firms are not profitable. A large portion of these firms are home-based businesses that are seasonal or geographically-limited in nature. The rest are mid-size to larger firms that are experiencing growth. Many small businesses have been forced to downsize because of the economic recession, and large numbers of smaller firms are seeking more affordable office space. When you think about it, why should a small business owner go out of business when there are more opportunities elsewhere?
Many small businesses are seasonal in nature. Some are involved in small niche markets, while others are involved in larger markets with a strong demand. The latter have the advantage of being able to tap into larger markets that are untapped. They also have the advantage of having a higher rate of return on investments than larger firms. The smaller firms often do not have the overhead costs associated with larger businesses and do not face the same competitive pressures as their larger counterparts.
Many small businesses are self-employed. Self-employed individuals are a very important part of our society, and they create jobs and income for millions of Americans every year. Self-employed individuals do not need a broker; they do not need an attorney, accountant, or any other professional to help them get their taxes done.
As previously mentioned, many small businesses are seasonal in nature. There are many small businesses that are only two years old and have never had the chance to build a strong market for themselves. These small business owners often give up on running a business because they lack a sufficient amount of knowledge to compete in today’s marketplace. Small business owners are usually forced to learn how to operate their businesses by trial and error and on their own.
If you’re considering starting up a small business, then you probably have a difficult time defining your size. In fact, some people have trouble defining their size even after they have defined it. You may have trouble figuring out what your size is if you have too many employees, customers, equipment, and space to operate. Unfortunately, many small businesses end up too big to handle all of their responsibilities and they cannot afford to lose even one employee. When you start with too few employees or too many employees who are overburdened, your business will be much harder to manage, run efficiently, and succeed in today’s economy.
Many new small businesses start out with too low of a capital investment. Even when owners invest in their business, they do so with loans from friends and family. Owners often do not realize that the loans they are taking out will impact their business’ credit scores in the long run. Unfortunately, these small businesses are not able to reinvest their profits in their company to improve their operations. Consequently, they cannot improve their credit scores until they start generating profits.
Many small business owners do not take social media seriously. For this reason, they do not bother updating their social media profiles or marketing themselves on the internet. Unfortunately, without an effective social media strategy, your business will be at the mercy of anyone with internet access. This means that any damaging information can be quickly spread through text, email, and even video. Furthermore, without a solid social media marketing strategy, your small business will be hard pressed to obtain any kind of internet presence at all. Therefore, it is imperative that you create a social media plan for your small business today!
