There are more than 33 million small businesses in the United States, and they play a critical role in innovation, job creation and economic resilience across the country. Small businesses are also more vulnerable to market pressures and may struggle to find the resources they need to thrive. From important definitions to expert growth tips, this guide has everything you need to know about small business.
To qualify as a small business, a company must meet size standards based on number of employees or revenue, which vary by industry. These standards are compiled by government agencies such as the Small Business Administration (SBA). Generally, the criteria include the number of employees at individual business locations (“establishments”) or total revenue for the firm. A small business can be structured in many ways, including as a corporation, partnership or limited liability company. It can also be registered as a small business, which opens up opportunities for funding and government programs.
Successful small businesses are built on strong fundamentals. This includes a detailed business plan with goals, risk assessment and funding strategies. It is also important to understand your target market and conduct a competitor analysis. Choosing the right business structure is another important consideration, with options that include a limited liability company, which provides personal asset protection and tax flexibility.
Small businesses can gain an edge by offering superior customer service, which creates stronger relationships and loyalty and helps build repeat sales. This may require additional staff or training, but it can be well worth the investment if it leads to increased revenue and long-term growth.