So You Want to Become an Entrepreneur in the United States
Based on how friendly states are to budding entrepreneurs, here is a list of states that foster the environment for business.
Here are seven ways to increase your success rates.
1. Start Your Business for the Right Reason
You need to be passionate about what you are doing to succeed with it. After doing your research, be patient, have a positive mind set, see failures as an opportunity to learn and develop, take charge of you world, be independent, and think your way through challenges.
2. Get the Best Management
It is best to surround yourself with the best and brightest people you can find. While good leaders recognize their talents and put it to use, great leaders recognize their shortcomings and hire employees who are experienced in these areas.
3. Have Enough Capital
It takes time for some businesses to gain momentum for success. Many fail due to insufficient funds while others fail at the brink of success. All businesses needs capital to begin and all able to develop it to the next level.
4. Location is Everything
This might seem obvious but it is mostly underestimated. The success of a business depends largely on its location. So you must carefully choose an ideal location because this can be the determinant between the success and failure of your business.
5. You Must Plan Carefully
The importance of this cannot be overemphasized as your plan must be up to date and based on realistic information. Through planning, you prepare yourself for the challenges ahead while your focus remains in sight.
6. Monitor Your Growth
Success should not be mistaken for speed with respect to business growth. Excessive expansion is a threat to a budding business. It should be implemented based on careful planning and it must be within your means.
7. You Must Have A Website
You must have a professionally designed website. Today. consumers window shop through the internet, reviewing each product before making a purchase. A website also gives the business owner the advantage of sharing information directly with prospective clients.
Entrepreneurial Business in 2008
In 2008, survey revealed the entrepreneurial made up about 99.7% of all employer firms, 44% of the private pay-out in the United States. Entrepreneurial business hires about 43% of the highly skilled workers, and forms about 52% of the total home based business and 2% of all franchises.
Entrepreneurial business forms about 50% of all private sector employees, this sector accounts for over 65% of new jobs in the last 17 years and more than 50% non-farm private GDP. Also, over 90% of all identified exporters were from entrepreneurial businesses, contributing to over 30% in export value.
Entrepreneurial Funding in 2010
With respect to entrepreneur funding in 2010, about 25% on entrepreneurs were self-funded while 75% were funded by Banks Loans and Credits. This amounts to about $80,000 start up cost per year and about 10% of all startups do not make use of capital injection.
The Role of Women, Minority, and Veterans
In 2007, of the 27 million businesses that were not farm based, over 7.5 million women owned $1.2 trillion in revenue. About $5.7 million minority women owned $1 trillion in revenue while 2.4 million veterans owned $1.2 trillion in revenue.
Survival Rate of New Firms
Research has shown that about 25% of firms survive up to 15 years in business, about 33% survive the first 10 years, and 50% survive about 5 years of business while only 70% make it beyond the first year of business. According to the Small Business Association, 66% of small businesses will survive their first 2 years. Half of businesses fail within the first year.
How Many Small Businesses Are There?
In 2009, over 99% of the total employers and non employers were represented by small firms with less than 500 employees. With about 120.6 million non farm private sector workers, small businesses had about 59.9 million while large businesses had approximately 60.7 million. Companies with between 10 to 99 employees formed 50% of the sample population while companies over 15 years old and more than 100 employees form 50%.
In 2009, a survey revealed that the average age of entrepreneurs was over 50 years. In other words for every 3 entrepreneurs, 2 are above 50 years of age, and 39 years is the average age of a tech company founder.