What Are the Odds?
Michael Gerber authored popular book for running a small business, “The E-Myth”, which shared statistics about the number of small business owners in the United States. A staggering 80% of small businesses fail in the first five years of operation. Of that remaining 20%, another 80% are out of business by their tenth year.
The U.S. Small Business Administration has studied in detail the effects of the numerous successful small businesses that have sprung up in increasing number in the last few years. At the end of 2012, nearly 28 million small businesses were operating in the U.S. 83% of these were solopreneurs – businesses making less than $100,000 in annual revenue or sales.
While these statistics may indicate to you that starting a small business is more uncertain than you had realized, there is still hope. It isn’t for nothing that more and more people start small businesses all the time, and for the ever present chance for success, the joy of the journey is worth the risk.
How to Plan for Success
Looking at your business plan through the lens of these statistics, you actually have a lot of room and time to work with. Five years is a long time to strategize and gives you room with which to allow for ebbs and flows of sales. With careful planning, in that time you can create a business that becomes essential to your community, or even your country.
- Do Your Research: What is the market like for your business type? Who is the clientele? What will be your challenges or your easy points?
- Set Objectives: Decide ahead of time where you want to be in 1, 3 and 5 years. By acknowledging where you are against where you hope to be at every stage, you have less chance of being surprised by failure.
- Follow a Vision: Allow the reason you have for getting into this business to carry you through the tough parts. Accept the hard parts and know what you are prepared to work through to achieve success.
Partner with the Help You Need
Advanced Funds Network has years of experience funding and supporting small businesses. Since 2007, we have provided both small and medium sized businesses unsecured business credit lines to enable the success of hardworking groups. AFN creates customized funding programs for clients who seek financial assistance, extending their lending services to businesses based on monthly revenues and mutually beneficial payment plans. Voted “Best in Class 2010” for our extensive financial services, AFN now provides funding in all 50 states up to two million dollars, with rates as low as 12%.
AFN allows businesses to find their legs a bit first, and will extend business credit lines to those which have been in operation for at least 6 months. If you are well on your way to having a successful year under your belt, now may be the perfect time to connect with our experts to learn more about options for small business credit lines.