Business Owners are you struggling
to improve your profit margin?
Business Owners struggling to improve is nothing new. In fact it’s more common than Business Owners being successful. I just reviewed the latest statistics on Small Business Success and here’s what I learned.
American Small Business Stats
U. S. Small Business Administration, which reveals:
In 2013, there were 28.8 million small businesses . . . . [of which] Microbusinesses (firms with 1-9 employees) are the most common . . . . 79.9% survival rate of new businesses in 2014 . . . . from 2004-2014, and average of 78.5% of new establishments survived one year (www.sba.gov).
NOTE: These statistics are regarding businesses who have formalized their existence as a business entity with the government and the IRS.
Small Business Survival and Failure Stats
Right now you might be saying, “OK, but why does this matter?” This matters because we’ve always heard that 50% of businesses fail within the first year. The fact is 79.9% of them survive. This is great news! If your business has survived more than one year, give yourself a high-five. If you have been profitable, jump up and do the Happy Dance.
Another interesting fact is that the definition of small business is firms with less than 500 employees. I know that’s a little bit of a head scratcher, but pay attention to this next fact. In 2013, 75.3% of Small Businesses were Microbusinesses (www.sba.gov). This begins to make sense to me why so many Small Business Owners (SBOs) are struggling to improve their profit margins.
SBOs say they’re “under constant challenges” – always wearing too many different hats. Small Business success tends to squeeze the owner into finding simplistic ways to function. Unfortunately this doesn’t necessarily mean they have better business operations and many legitimate Small Businesses are operating at a loss.
Why are SBOs struggling to improve their profit margin?
The reason is simple, most SBOs don’t know what they don’t know. IMPORTANT: No one expects you to know everything about business. You became a Small Business Owner because you have a passion to deliver your expertise. That’s what you should be focusing on – improving your expertise. Isn’t that cool? I just let you off the hook …almost!
ACTION ITEMS TO IMPROVE YOUR PROFIT MARGIN:
Find a Business Coach, Mentor, or Adviser who has accomplished what needs YOUR Business currently has. Interview several professionals, not friends with opinions, so you understand what is possible and best for YOUR Business. Next, engage with one to help you move beyond struggling to improve YOUR Business. Then get busy doing what they suggest!
What’s one of the areas in your business you’re struggling to improve? Share and I’ll write a blogpost about it to help you out! Share your answer in the comment section.
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