In order to impact the world around us there must be a solid foundation from which to build. #CreativeEconomy @CrowdsourcedPlacemaking
About two-thirds of business survive two years in business, half of all businesses will survive five years, and one-third will survive 10. The longer a company has been in business, the more likely it is to stay in business—it’s those first few years that are the hardest. The Bureau of Labor Statistics also tracked business survival across industries and concluded that these statistics are pretty consistent regardless of industry.
According to a U.S. Bank study, a whopping 82% of businesses that fail do so because of cash flow problems. Remember that cash flow doesn’t just mean the amounts of money that are coming in and out: you have to take timing into account, too. If you operate a business based on an invoicing system, for example, and your invoices aren’t paid until after your loan payments are due, you might end up with a cash flow problem.
Seasonal business—like landscaping companies—can also run into this problem: their money doesn’t flow in until the summer, so they wind up scraping by in other seasons. It’s important to budget and to prepare and analyze cash flow statements to make sure you’re keeping on top of it. Hiring a bookkeeper, using cloud-based software like QuickBooks, and enlisting a certified public accountantcan all also help to keep your cash flow in check.
The top 3 challenges of running a business, according to the small businesses surveyed by the National Association of Small Businesses for their 2015 report?
Economic uncertainty, the cost of health insurance benefits, and a decline in customer spending, with regulatory burdens almost tying for that third place spot. Still, most business owners are pretty optimistic—75% say that they’re confident in their own business, which is an improvement from a year earlier..