Business intelligence is really a vital resource for every entrepreneur, especially if you are starting out on a business and want to see it grow.
Data from the US Business Dynamics Statistics of the Census Bureau revealed that 69% of US entrepreneurs started their business small, operated either out of a small office or at home.
Majority or 51% of small business owners belonged to the age range of 50-88 years old, 33% belonging to the 35-49 age range and 16% aged 35 and below.
US Bureau of Labor Statistics, more than half of start up businesses failed during the first four years of operations. Using data for small businesses from 2011, only 4% made it to the first year, 3% made it to the third year, 9% on the fourth year and 3% made it to the fifth year.
These failures were attributed to incompetence at 46%, lack of managerial or leadership experience at 30%, catchall categories such as fraud, disasters or neglect at 13% and inexperience on lines of goods or services at 11%.
Start-ups vying for space
In the US today, there are 29.6 million small businesses operating throughout the country. Out of this number, among those that show success the highest ranking start-ups being in the accounting, tax preparation, bookkeeping and payroll services.
This is followed by company management and enterprises, then by real estate and property portfolios.
Profitable or bust
Another report from the Labor Statistics office showed that 77% of start-ups rely on using their own money to set it up.
Around 40% of businesses have been found to be profitable, 30% getting break-even and 30% are bleeding money.
Want your start-up to thrive? Then find a co-founder to act as your business partner to increase your chances of profitability, based on studies.
These start-ups have been found to raise money by 30%, assures start-ups of three times the user growth and some 19 percent are least likely to scale prematurely.
At least 82% of start-ups have failed due to cash flow problems, while 27% claimed they have not received funding offered or which they needed.
However, do not let the data disappoint or discourage you from establishing your start-up business and although you see yourself spending some of our money to start your small business, you need judicious and practical budgeting.
This also includes the need for you to stay abreast of information and intelligence regarding your desired line of business, lest you may end up like a failed statistic.
Another consideration that can help you a lot with the proposed start-ups is the fact that you may need to understand the market and get good financial and business ideas from available resources such as employee financial wellness programs,
With such programs, you can be guided accordingly about what you can do to learn more about business and investments from financial experts and consultants that can give you sound advice on what to do and what your options are.
I am, first of all, a husband and father. Rebecca and I have been married 23 years; we have four children ages 21, 19, 18, and 15. My family is my greatest joy in life. For 24 years, I have practiced business law in Arizona, the past eleven as the managing partner of Gibson Ferrin, PLC. We help businesses and their owners meet their business and personal goals. My practice focuses on the intersection between intellectual property law and employment law. I help businesses prosper by properly managing their intangible assets.
I am licensed to practice law in Arizona only. Though I believe the advice in BiziBoom™ is based on sound legal principles, the law of your jurisdiction may be different. The advice given on BiziBoom™ is informational only; it may not be applicable to your specific situation. You should seek the advice of competent counsel in your jurisdiction, someone who knows the particular legal requirements of your jurisdiction. Until you have signed an engagement letter with Gibson Ferrin, PLC, neither the Firm nor I are acting as your legal counsel. Nothing on BiziBoom™ creates an attorney/client relationship between you and the Firm.