2. Introduction to Small Business Introduction to Small Businesses Why People Start Their Own Businesses Current Small Business Conditions Positioning for Success Wrap Up
3. What is a Small Business? The Small Business Administration uses standards, such as the number of employees or the average annual receipts when defining a small business: SBA’s size standards are based on the North American Industry Classification Systems (NAICS). A small firm is typically allowed to hire up to 500 workers and still qualifies for various SBA and federal government procurement programs for small businesses.
4. What is a Small Business? There really is no single, official definition of what constitutes a small business. Overall, a small business is privately owned and operated, with a small number of employees and relatively low volume of sales.
10. Opening & Closing How many businesses open and close each year? The number of non-employer firms has risen steadily in this decade, from 16.5 million in 2000 to an estimated 21.1 million in 2007.
11. Small Business Survival Rate According to a recent study: Two-thirds of new employer establishments survive at least two years. 44% survive at least four years 31% survive at least seven years The study found that businesses that survive four years have a better chance of surviving long-term. After the fourth year, the rate of firms closing declines considerably. Source: “Business Employment Dynamics Data: Survival and Longevity, II,” by Amy E. Knaup and Merissa C. Piazza, Monthly Labor Review, vol. 30, no. 9 (Sept. 2007), pp. 3-10; “Redefining Business Success: Distinguishing Between Closure and Failure” by Brian Headd, Small Business Economics, vol. 21, no. 1 (August 2003), pp. 51-61.
12. Why People Start their Own Businesses Introduction to Small Businesses Why People Start Their Own Businesses Current Small Business Conditions Positioning for Success Wrap Up
13. People Start Businesses for a Variety of Reasons They want financial freedom They want to set their own hours They are tired of working for a boss They want to apply their experience and knowledge to a new endeavor They want flexibility They want recognition They want to build or create something They want a change from their everyday routine or current job
14. People Start Businesses for a Variety of Reasons They want to make a difference They want to leave a legacy They want the challenge and excitement They want to feel intellectually stimulated They want to exercise their entrepreneurial instincts They want to combine their competitive spirit with their creative inclinations They want to be the boss They want to take control of their life
15. Current Conditions Also Contribute to Business Startup Economic conditions can open the door to entrepreneurship opportunities that one may not have considered before-hand. For Example: Lay-offs have opened the door for new beginnings Recent graduates are coming into the workforce with nowhere to go Veterans are looking to transition back into work life Seniors cannot depend on retirement History has shown that recessions can be the birthing grounds for some of hardest working, most successful and creative entrepreneurs today.
16. Current Small Business Conditions Introduction to Small Businesses Why People Start Their Own Businesses Current Small Business Conditions Positioning for Success Wrap Up
17. Small Business & the Economy Like the rest of the economy, small businesses were affected by the depth of the recession in late 2008. If the past is an indicator, small businesses are vital to the economic recovery.
19. Current Small Business Hurdles Health Care Costs remain a constant issue for small firms. High Competition with Benefits Results in greater turnover rate. Financing Total business borrowing decreased from $1.228 trillion in 2007 to $507 billion in 2008. Lenders exhibited widening interest rate spreads and tightening terms of lending. Some surveys found small firms expressing less willingness to spend, hire or invest in the near future.
20. Positioning for Success Introduction to Small Businesses Why People Start Their Own Businesses Current Small Business Conditions Positioning for Success Wrap Up
21. Factors That Increase a Business’ Chance for Success Business Demographic Research Market Accessibility (product/service) Ability to reach your target market Business plan (with financial projections) Capital / Financial Back-up Goal setting and achievement Planning and preparation Location
22. Factors The Increase A Business’ Chance for Success Entrepreneur Passion Capitalize on your strengths Patience Perseverance and determination Positive, change-oriented attitude Focused Communication, (especially the vision)
23. Planning is Critical Planning, research and more planning is critical now more than ever! Loans and financing are becoming harder and harder to come by, therefore: Banks, financers and investors have to see a clearly defined and well-thought business plan that proves your idea is strong and worthy of funding. They must see research that proves the potential for success. No longer can just anyone with an idea walk into a bank and come out a business owner. Plan, Plan, Plan!
27. Where Does BizCentral USA Come In? Startups often have big dreams with small funds. This is where we come in with an advantage: BizCentral USA is a one-stop-shop for all entrepreneur’s needs! Business plan development, startup resources and tools, research tools, loan referrals, incorporation, marketing and more. We offer value pricing for professional quality products and services! Our staff is comprised of experts in a variety of fields and specialty areas, ready to assist entrepreneurs in achieving their goals!
