Top Reasons for Small Business Success & Failure

TOP REASONS for SMALL BUSINESS SUCCESS &FAILURE THE NITTY GRITTY OF ALL U.S. BUSINESSES 99% 7 OF EVERY 18 NEW JOBS IN THE U.S. COME FROM SMALL ARE SMALL BUSINESSES BUSINESSES Best Coffee 1162 TO 1 The number of small businesses which IN TOWN outnumber corporations in the U.S. 29.6 78% OF SMALL BUSINESSES ARE MILLION SMALL OWNED AND OPERATED BY BUSINESSES IN THE US A SINGLE PERSON TOP 18 FASTEST GROWING SMALL BUSINESS SECTORS FOR 2013 *SALES GROWTH OVER THE PAST YEAR 22.43% ELB8% 2143% EL42% 2123% 17.92% 15.57% 15.37% 13.80% 18.59% OILSEED & FARMING ARCHITECTURAL AND STRUCTURAL METALS AND MANUFACTURING CATTLE RANCH AND FARMING EMPLOYMENT SERVICES INDUSTRIAL MACHINERY MANUFACTURING MACHINERY MAKERS AND RETAILERS AND SMALL PART MANUFACTURERS COMPUTER SYSTEMS DESIGN AND RELATED SERVICES GAS STATIONS MANAGEMENT, SCIENTIFIC, AND TECHNICAL CONSULTING SERVICES BUILDING AND DWELLING SERVICES THE SURVIVAL OF NEW SMALL BUSINESS 18 178,888 MORE THAN SMALL BUSINESSES IN THE U.S. SHUT DOWN BETWEEN 2008 AND 2010 MONTHS THE AVERAGE LENGTHOF TIME IT TAKES TO BREAK ABOUT HALF OF NEW BUSINESSES SURVIVE 5 YEARS OR MORE EVEN INA NEW SMALL ONE THIRD SURVIVE AT LEAST 10 YEARS BUSINESS > MOST SMALL BUSINESSES turn to lenders for the capital they need to survive TOP $ FACTORS AFFECTING SMALL BUSINESS SUCCESS BANK OF AMERICA SMALL BUSINESS OW NER REPORTr, SPRING2013 76% 75% 67% 59% 59% 50% 56% 52% RECOVERY OF CONSUMER SPENDING CONSUMER CONFIDENCE TAXES STRENGTH OF U.S. DOLLAR COMMODITIES PRICES EFFECTIVENESS OF GOVERNMENT LEADERS HEALTH CARE BENEFITS/COSTS CREDIT AVAILABILITY HOW SUCCESSFUL BUSINESS OWNERS KEEP THEIR DOORS OPEN TODAY'S APPROVAL RATE FOR SMALL BUSINESS LOANS 88% 76% FIND WAYSTO CUT COSTS STRENGTHEN EXISTINGG CLIENT RELATI ONS 69% 65% LOOK F OR NEW CLIENTS 16.9% 19.0% 440% 63.4% REFINEBUSINESS STRATEGIES BIG BANKS SMAL BANKS CREDIT UNIONS ALTERNATIVE LENDERS SMALL BUSINESS OWNERS ATTRIBUTE THEIR SUCCESS TO: SAGE REINVENTION OF SMALLBUSINESS STUDY 9% MORE TECHNOLOGY INVESTMENT 48% BETTER MANAGEMENT OF CASH FLOW 4% MORE USE OF MOBILE DEVICES 32% MORE TECHNOLOGY INVESTMENT 32% BETTER MANAGEMENT OF CASH FLOW 32% MORE USE OF MOBILE DEVICES > TOP FACTORS FOR SMALL BUSINESS FAILURE Lack of experience Poor location Unexpected growth Insufficient funding Poor inventory management Competition Not saving enough money Over-investment in fixed assets Low sales ARE SMALL BUSINESS OMINERS "LNING THE DREAM"? WHO ARE SMALL BUSINESS OMINERS? 56% YES 44% ND 72% ARE MALE 28% ARE FEMALE 50.8% HAVE A COLLEGE DEGREE 36.5% ÁRE 55 OR OLDER 31.7% ARE BETWEEN THE AGES OF 24-44 29.6% ARE BETWEEN THE AGES OF 45-54 2.2% ARE YOUNGER THAN 25 HOW SMALL BUSINESS OWNERS DEFINE SUCCESS RESPONDENTSANSWERED THE FOLLOWINGONA SCALE OF 1-7 LIVING THE LIFE I WANT DOING THE WORK I LOVE B.6% B.5% B.3% DETERMINING MY OWN PATH SECURING BASIC FINANCIAL GOALS (RETIREMENT SAVINGS, EDUCATION, FREEDOM FROM DEBT) B.3% B.3% 5.0% 5.0% 4.8% 4.6% HELPING MY CUSTOMERS BE MORE SUCCESSFUL MAKING A LOT OF MONEY BEING IN CONTROL GROWING MY BUSINESS SO I CAN SELL IT SUPPORTING MORE EMPLOYEES BROUGHT TO YOU BYY D ALL BUSINESS LO ANS http://allbusinessloans.com SOURCES http://na.sage.com/"/media/site/sagena/documents/Sage-Reinvention-of-Small-Business-Study-2013-Summary-Report http://smallbusiness.foxbusiness.com/finance-accounting/2013/05/07/top-us-cities-forsmalbusiness-growth/ www.sageworks.com http://www.businessinsider.com/facts-aboutsmall-businessesin-america-2011-8?op=1 http://www.entrepreneur.com/artiale/226548 http://www.sba.gov/sites/defauli/files/FAQ_Sept_2012.pdf http://www.biz2credit.com/small-business-lending-index/june-2013.html http://www.sba.gov/content/small-businesssizeregulations