Since the COVID-19 crisis began, there has been a lot of talk about small businesses in America. While the US Small Business Administration counts companies with up to $35.5 million in sales and 1,500 employees as “small business”, outside of the government it is typically companies with $7 million in sales and fewer than 500 employees.
Read these facts, but more importantly read how we champion Small Businesses and why they are at the core of who BizX is ⬇️
Here are some fun Small Business facts that you might not know:
- Small businesses provide work for 55% of the American workforce. Don’t let the word “SMALL” confuse you! Small businesses are a huge help to keep the economy stable.
- As of February of 2020, there were 30.2 billion (yes, BILLION) small businesses in the US. Out of that number, 3.7 million micro businesses exist (businesses with less than 10 employees)!
- Small businesses create over 47.8% of all jobs - WOW!
- 8 million small businesses in the US are minority-owned
- 42% of small businesses employ freelancers
- 69% of small businesses begin at home
Now onto some not-so-fun facts (but don’t worry, we have solutions!):
- 57% of small business owners rely on personal savings as their main source of capital when starting
- Most small businesses finance themselves using company earnings and credit cards (77% of small business owners who applied for loans from big banks were rejected)
- 20% of small businesses fail in their first year, 50% after five years and a staggering 70% fail after 10 years - overall 90% of startups fail
- Only ⅓ of small business owners have an exit plan
- Most small businesses fail due to cash flow problems (over 82%)
- The top reason that startups fail is because there is no market for their product or service
- Over 80% of small businesses don’t bother with content marketing at all
Why do these facts matter? Because we can help. We LOVE small business and our mission is to help them succeed. Let’s recap 🙌🏼
57% of small business owners rely on personal savings as their main source of capital when starting. Most small businesses finance themselves using company earnings and credit cards (77% of small business owners who applied for loans from big banks were rejected).
Starting a business? Need capital to get it going? Don’t want to wipe out your savings? BizX is currently offering a zero-interest line of credit for qualified businesses. With your line of credit you can do everything from get help with construction costs to building a website to getting a phone system. One of our BizX representatives can help you create a checklist of the ways we can save you money and get your started.
Only ⅓ of small business owners have an exit plan.
While a solid exit plan is important, do you have ANY plan? Most small businesses are born because of an idea or a skill, but are usually lacking a plan. And that’s ok! We have business consultants, tax specialists, attorneys and so many more members that are a part of our community that can help you get a plan….and even more importantly, execute your plan.
Most small businesses fail due to cash flow problems (over 82%).
Cash is king but barter is better 😉 BizX allows you to leverage your excess capacity (which most small businesses have a lot of when starting out!) to get what you need! It sounds complicated, but it really isn’t. If you’re a restaurant owner and have empty tables, fill them with BizX members and use the BizX dollars you get to pay for your kitchen hood cleaning, a house wine, flooring, accounting, marketing….and so much more! Use what you have, to get what you need!
The top reason that startups fail is because there is no market for their product or service.
We have customers who need your services. Our community is full of members who love working with each other! We will help you craft your offers, feature you in newsletters and get you business you normally might not have been exposed to!
Over 80% of small businesses don’t bother with content marketing at all.
We have SEO specialists, social media experts, bloggers, and website designers and developers. They can help you launch your business and keep it going!