There was once a time when America was known throughout the world as the “Land of Opportunity,” causing hundreds of thousands of immigrants to leave their homelands for a new life. Today relatively little has changed, as thousands of new small businesses are popping up across the country. There are now approximately 28 million small businesses that account for nearly half of the United States’ jobs and sales. For every new businesses that springs up however, there are bound to be a few that fail. Insufficient capital, combined with a general lack of experience, are the largest reason why small businesses fail: here is what to expect when you start your own small business.
The top three expenses for companies are employee wages, inventory, and rent respectively. Employee wages can take up around 19.4% of a company’s expenses, especially those businesses that offer benefits to their employees. Managing inventory and maintaining equipment was a priority for half of small businesses in 2014 that either replaced some old service equipment or maintained their current IT infrastructure; on the whole this can cost companies roughly 7.7% of their budget. Maintaining is simply not the way to run a business, which is why nearly half of small businesses plan on investing in new marketing tactics to draw more customers in. With so many expenses, it is not difficult to make mistakes and leave yourself short.
Finding Working Capital Loans for Small Businesses
The United States Small Business Administration is designed to help small businesses grow and develop: to aid in this, they offer a “Loans and Grants Search Tool” to help businesses find the right small business working capital loans for them. Although such loans are facilitated by banks, the Small Business Administration backs these loans to ensure that your business can thrive with working capital loans for small business. These loans are specifically designed to help businesses cover their expenses and grow on their own in time. NYU Marketing Professor Adam Alter has claimed that spending on unplanned expenses is the biggest reason why most people can’t stick to a budget and in fact find themselves continually going deeper and deeper into debt. It just goes to show that with a little hard work and a great idea anyone can run a business with some help from the funding experts.