The Top 5 Things to Know When Starting a Small Business

"The people who are crazy enough to think they can change the world are the ones who do."
- Steve Jobs

70% of small businesses are owned and operated by a single person.¹
Two-thirds of all present-day college students intend to become entrepreneurs at some point in their careers.²
It takes just 6 days to start a business in the U.S., compared to a whopping 38 days in China.³
There are 28 million small businesses in the U.S., which outnumber corporations 1162 to 1. ⁴
Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970’s.⁵

Pioneering a startup is one of the quintessential ideals of the American Dream. It can be a very rewarding journey, but one that takes hard work, passion and even some soul searching. Below are my top 5 things to know when starting your own business.

You Don't Need to Reinvent the Wheel
For most people, starting a business is a frightening task. Believe it or not, other people have already done it, and you do not need to reinvent the wheel to start a business. You are not alone, and there are resources all around you. You will be joining more than half a million other entrepreneurs who did or will do the same thing this year. Unless you are selling a new product that has never been sold before, you can use and benchmark other successful companies. Learn how to apply traits of those successful companies around you, to your business model, and it will aid in the success of your new venture.

Know Yourself
As a business owner you need to be honest with yourself, and truly assess your strengths and weaknesses. Some people think that because they are the “owner” they need to know and do everything. The harsh reality is that you are probably well skilled in only a few areas. Figure out what those strengths are, work on them, and delegate those things that you aren’t good at or passionate about. This will help ensure long-term viability of the business.

You Will Want to Give Up
Throughout your journey you will want to quit. You will say in private or to someone you know – “I’m done”. Before you embark on the rewarding journey of being a business owner, you need to mentally prepare and remove the option of throwing in the towel. Failure is not an option!

You Will Not Immediately Become Rich
Often people associate the words “business owner” with wealthy individuals. You can certainly become wealthy or financially stable by owning your own business, but the path to attain this will be narrow and hard. So, make sure you are doing what you love. "You need a lot of passion for what you're doing because it's so hard," Steve Jobs once said. "Without passion, any rational person would give up."

Your Customers Will Not Come Flocking
It doesn’t matter how great your service is, how refined your business model is or how innovative your product is. Customers will not automatically come flocking to you or your business. Before flipping your sign to open make sure you have a Marketing plan and a strategy to build brand awareness and ultimately obtain market share. All business owners will tell you they have the best service and product! Find what makes you different and capitalize on that.

Sources:

1. https://www.businessinsider.com

2. https://www.rlrouse.com/small-businesses.html

3. https://advocateprinting.net/15-small-business-facts/

4. https://www.businessinsider.com

5. SBA 2017

For more advice when it comes to starting a small business, contact Chase Larson at Falcon National Bank.