Starting a Business by the Numbers

It’s no secret that starting a business in today’s fast-paced, global market is challenging. Successfully building a business and running it efficiently requires a vast skillset, a dependable support system, and admittedly, a little bit of luck. The reality is that the majority of businesses fail within the first few years of existence. While the reasons for failure vary greatly, one commonality is that startup life is not for the thin skinned. Small businesses are the backbone of America and account for nearly half of all U.S. workers. As such, small business owners and future small business owners are critical to the nation’s economy.

With a business plan in mind and the understanding that hard work and determination are essential, entrepreneurs truly benefit from learning a pertinent statistics about starting a business and what that may entail. The following figures paint a well-rounded picture of startup companies today:

• Over 40 percent of startup companies fail because they do not meet a market need
• About 62 percent of all business in the country are made up of less than five employees
• Every month, more than 500,000 people become new business owners
• Nearly 94 percent of small businesses’ main phone lines are their smartphones
• More than three quarters of small businesses are started with the personal savings from the entrepreneur
• The majority of startup failures are linked to cash flow issues
• Accounting and tax preparation are amongst the most profitable startup industries
• About 30 percent new entrepreneurs in America are immigrants
• In the last 20 years, women-owned businesses have increased by 114 percent

Some of the above statistics may seem scary and discouraging, but the reality is that entering the world of entrepreneurship with a sound understanding of the startup business landscape is imperative. If you are looking to venture off on your own with your next big idea, we are here to help. Through careful consideration of your goals, our proactive business formation services can help you choose which path is the right one for you whether it be a sole proprietorship or general partnership, limited partnership, limited liability company, limited liability partnership, “C” Corporation, or “S” Corporation. Contact our office today to get started on your new business.