Getting Started As An MWBE
May 10, 2018WPHA Phase II of Brookfield Commons Project Press Release
Mar 11, 2019
Did you know that according to the U.S. Small Business Administration that small businesses make up 99.7% of all business in the U.S.? A small business is defined as a business with less than 500 employees (this includes the ones that are self-employed/non-employers).
No doubt, most business owners know their trade, but is that really enough to run an effective business? Did you also know that statistically, in the first 5 years, half of those new businesses will have failed? (U.S. Small Business Administration, Office of Advocacy, Frequently Asked Questions, 2016) What exactly causes such a short life expectancy in small businesses? Is it the market? Is it the inability to manage? Is it lack of work? Is it the location?
No doubt, most business owners know their trade, but is that really enough to run an effective business? Did you also know that statistically, in the first 5 years, half of those new businesses will have failed? (U.S. Small Business Administration, Office of Advocacy, Frequently Asked Questions, 2016) What exactly causes such a short life expectancy in small businesses? Is it the market? Is it the inability to manage? Is it lack of work? Is it the location?
Here are some of the top eleven most common issues faced by small business owners that can sink your business.
1. Demand & Location
You’ve come up with a fantastic idea for business now it’s time to start putting it in motion. One of the most detrimental parts of opening a business is choosing a location. What is the age-old adage? Location, Location, Location. Strategically the area you pick to situate your business will determine who, what and how much work you will get. Location is detrimental to a thriving business. It is important to understand the market you are opening up into and understanding the need and want for your product. Here are a few of the most important things to consider when searching for a business location:- You want your business to be easily accessible to your customer-base whether that means you traveling to them or they traveling to you.
- Scope out the area for your competitors, perform competitor analyses: You want to open up a pizzeria and the place you intend to open your pizzeria has 3 other pizzerias within 3 blocks of one another. Does your business have something special to offer that will make you stand out against the other 3 established pizzerias on the block?
- Research cost of living: Can you afford to pay your workers/will you have enough money to make a profit for yourself after all expenses are paid?
- Research cost of living: Can you afford to pay your workers/will you have enough money to make a profit for yourself after all expenses are paid?
- Check out the demographics for the area: is your product something that would appeal to the local people? You wouldn’t want to open a paintball field in a primarily elderly community; it wouldn’t do well for business.
- Check out local laws: Laws might dictate whether or not your business is even ALLOWED in the area you are considering. For example, if you’re looking to open up a small deli and mart and are looking in areas near schools, consider whether or not you’re planning to sell alcohol as many areas have laws that prohibit liquor licenses near schools and churches.