Regardless of their size, structure or profit margin, small businesses – 33 million of them in the United States according to the Small Business Administration — play an integral role in innovation, job creation and economic resilience. They can range from solo entrepreneurs and family-run shops to growing companies with hundreds of employees. But even as their numbers have grown, many of these independently owned and operated companies remain financially vulnerable.
They may be over-leveraged, have high debt levels and may have difficulty accessing credit, especially from large commercial banks. In addition, many have not yet reached a point where contribution margin (sales minus variable costs) equals or exceeds fixed costs. This is why it’s important for small business owners to track sales, revenue, expenses and margins using tools like Lightspeed’s built-in reports and Advanced Reporting.
For many small businesses, getting started has meant relying on personal savings and loans to sustain them through the startup phase. During this period, it’s important for them to be mindful of how much they are spending and to set goals for future growth that account for the financial costs of expanding their operations.
Many local, state and federal programs are available to support small business growth. Empire State Development offers a comprehensive list of small business resources and an online tool that will generate a custom checklist of NYS programs and services that match your business goals. Small business owners can also get a low interest rate on a business credit card to start building their company’s credit history and earn rewards on everyday purchases.