If you’re looking to start a small business, it’s important to know what you’re getting into. After all, if you don’t make the right choices, you could end up in a predicament that’s not only frustrating, but potentially devastating. With a little bit of research, however, you can start off on the right foot, and learn what’s involved in starting and running a small business.
The Small Business Administration (SBA) defines a small business as a for-profit enterprise with fewer than 500 employees. They also assign six-digit North American Industry Classification System (NAICS) codes to businesses. These codes are broken down into sub-categories.
SBA size standards are designed to help you determine whether you are eligible for government contracts, grants, and loans. You’ll need to meet specific requirements for your industry, including revenue and employee count. To ensure you qualify, you can refer to the SBA’s Size Standards Tool, a table of size standards that corresponds to the NAICS system.
For instance, a full-service restaurant is a small business if its average annual gross receipts are under $8 million. Similarly, a fish and seafood merchant wholesaler isn’t. However, if you’re interested in the fish and seafood sector, the fish and fisheries industry is not currently a small business.
A small business can be any kind of for-profit enterprise, from a corporation to a sole proprietorship to a partnership. Regardless of what you decide to do, you’ll need to consider the best way to market your product or service. There are a number of ways to go about this, including online marketing and social media campaigns.
Some of the more innovative companies are small businesses that have found a niche in a large and competitive industry. This may involve a new and innovative product, a collaborative effort with other local business owners, or the sponsorship of a community project. By targeting a certain consumer segment, you can get your product or service in front of more people, and more often.
Another good idea is to identify your target market’s needs and desires, and then work on developing a solution. You can do this by doing some market research, scouting out your competitors, and trying to learn more about the needs and wants of your potential customers. Identifying the right target audience is a big step toward starting and running a successful business.
In order to make your small business a success, you’ll need to take the time to figure out your objectives, develop a strategy, and then work to achieve them. Before you know it, you’ll be enjoying your new business and having a great time doing it.
It’s all in the details. You should find out what kind of business you’d like to start and how you’ll structure it, and then figure out what resources you have to devote to it. Finally, you’ll need to set deadlines for launching and managing your small business. Once you’ve gotten all of your ducks in a row, you’ll be well on your way to building a successful, profitable business.