Small Business Advice

Thousands of people start new businesses every year in the U.S. in pursuit of their entrepreneurial dreams. According to the latest census, there are 32.5 million small businesses, defined by the Small Business Administration as those that have fewer than 500 employees. But running a small business isn’t a “cakewalk.” There are many functions to manage, risks to deal with, time commitments, and mastering your small business’s finances.  What a Small Business Owner Needs to Do  To succeed, a small business owner…

Small businesses are critical to the U.S. economy with more than 32 million small businesses in operation according to the SBA Office of Advocacy. And U.S. small businesses employ almost half of the workforce. The COVID-19 pandemic affected all businesses and today they continue to face many challenges. Thus, it is important for small business owners to understand financial trends to create a solid path to continuing success.  Why It is Important to Understand Financial Trends   To use an analogy from the…

Selling your small business isn’t likely to be the first thing on the mind of an entrepreneur when he/she decides to start a small business. After all, there are dreams of great success ahead. But sooner or later that likely will become a reality. According to smallbiztrends, 8,647 small businesses were sold in the U.S. in 2021, up from the 7,612 sold in 2020.  Why Do Small Business Owners Sell Their Businesses  There are many considerations that may lead to the possibility of selling…

Is financial uncertainty a possibility for a small business owner? Yes. Indeed, financial uncertainty can occur for any enterprise. The key thing is to prepare for that possibility. As Thomas A. Edison said, “The object of all work is production or accomplishment and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose, as well as perspiration.”  What is Financial Uncertainty  Financial uncertainty refers to the lack of sureness of a business’s financial future; the inability to…

Everyone likely understands the well-established principle of having a personal savings account to prepare for “a rainy day.” The same principle applies to businesses that should have a business savings account. A business savings account is different from a business checking account in that a business checking account is used for regular transactions such as paying bills and making various purchases while a business savings account is used for storing funds safely.  Benefits of Business Savings  A business savings account offers these benefits:  To deal…

Business credit is something that every business owner should care about. Business credit is simply a financial profile of a business based on its financial history. It is determined by how a company handles its loans, credit cards, trade lines, and lines of credit and it is tied to the business’s Employer Identification Number (in contrast to an individual’s credit score which is tied to his/her social security number.)  Why is Business Credit Important?  Business credit is important because it allows a…

As the old expression goes, “There is nothing more certain than death and taxes.” Of course, taxes play an important role in our civil society. But regulations and tax payments can be a big burden on small businesses. Hence, Missouri tax reforms are taking a step forward to relieve small businesses and help preserve their future.  The Importance of Tax Laws It is important for small business owners to understand federal, state, and local tax laws and requirements so that the…

Every business owner knows how much time, effort, sacrifice, and investment of the heart and mind it takes to start and operate a business. But there may come a time when selling your business becomes appealing. Know that you are not alone in facing this difficult decision. In fact, in 2021, 8,647 business sales transactions were closed according to bizbuysell.com.  Why Selling Your Business May be Right for You  At some point, a business owner may need to consider selling…

If you are a seasonal business owner or operator, you know that you face some special challenges. Sales may slow down significantly during certain times, yet you must manage through the “troughs” to stay profitable (and sane.) But don’t despair. There are many other seasonal business types and many other owners facing and conquering their seasonal challenges.   What is a Seasonal Business?  A seasonal business is a business that generates most of its sales during more limited time periods of a year….

Business growth, progress, and improvement are vital to the long-term success of every business enterprise. Business growth must be a deliberate choice, fired by passion, planning, and solid effort. Did any successful business owner ever say, “Let’s stagnate to success,” or “Let’s shrink greatness?” No, not ever.  What is Business Growth  Business growth can be noted by several different measures, including increases in sales, profits, number of customers, number of employees, and company value. Not every aspect needs to increase or even increase at…