As the new year begins, this is a good time to consider your career, review your priorities, and possibly change direction. This new direction may require leaps and bounds to develop its own business. If you are considering such a move, you might think of statistics that many small businesses have not survived their first year of operation. But don't let this challenge hinder you. You can clearly understand the opportunities and risks, and focus on your enthusiasm to achieve success. First, here are some suggestions.
The rise of new business
According to various sources, the formation of new businesses in the United States has been increasing. The U.S. Census Bureau reported that new business applications have grown steadily. According to a report on new business by the agency Teleto, new business has increased by 75%. Compared with 2010, today’s business applications have increased. In addition, according to the Economic Innovation Group (EIG), most new businesses start in four industry sectors, including food service, retail, healthcare, and transportation.
It makes sense for new businesses to flourish, because the pandemic creates flexibility for people to start sideline businesses and opens up new markets and opportunities for everything from products such as masks to services such as applications or technologies, in new ways Make a connection.
In addition, according to research conducted by Teleto, a company that specializes in purchasing agents, the World Bank ranks the United States as one of the easiest countries to start new businesses.
Who is starting a business?
If you decide to go out by yourself, you will get good company. According to a study by Ranstad, 41% of workers are considering quitting their current job and starting their own business. Other research by HiBob and Fiverr found that 22% of people are quitting their jobs to freelance.
According to Ranstad, young employees are most willing to leave, with 51% leaving between the ages of 25-34, and 20% for those 55 and older. Another Teleto study of small businesses found that, compared with baby boomers, Gen Z and millennials are 188% more likely to plan to start their own businesses.
Interestingly, according to data from HiBob and Fiverr, those who left to become their own boss came from marketing (36%), followed by law (33%), healthcare (28%), and technology (27%) . In addition, former entrepreneurs are mainly from large organizations (28%), followed by small companies (24%). All of this is important for new entrepreneurs because you need to understand your competitors-the role people come from and the type of company may indicate that they must apply skills or experience to the new startup.
The market for new businesses and freelancers is healthy. According to research by HiBob and Fiverr, when companies cannot find new employees for normal jobs, 32% of the time they will hire freelancers to fill necessary positions. The irony is that people who leave their own startups in turn create demand for the services or products provided by startups.
How to successfully start a business
The study of new business and entrepreneurial success and failure provides insights into what is needed to succeed. These are evidence-based ways to achieve your dreams when you are out alone.
Know your goals. Most people start their own business because they want to be their own boss, or because they want to change their career, pursue passion, or build new things. However, if you want to quickly become a millionaire, you may need to rethink your reasoning. According to banking service provider NorthOne, only 40% of businesses are profitable, and the average annual salary of entrepreneurs is about $60,000 (although they point out that only about 8% of people start their businesses for financial gain).
When you take this step, make sure you know what motivates you so you can start your business accordingly. Are you involved because you are passionate about creating special products and want to eventually open your own physical store? Or do you just want to be the next fabulous tech CEO? It is important to figure out your priorities.
Be aware of risks. Whenever you enter a new opportunity, it is best to realize both the advantages and disadvantages (which may include unexpected failures). According to a report by Teleto, more than 50% of startups fail in the first year, and 95% fail in the first five years. NorthOne's analysis found that the most successful new businesses are in finance, insurance, and real estate, with 58% of businesses still in business four years later. For your own success, please keep your eyes open and don't shy away from understanding potential failures-so that you can increase your chances of success. One way to reduce risk is to understand your target market. Teleto said that 42% of business failures are due to lack of market demand. Learn about the market by keeping up with the latest news and trends, including talking to experts and potential and existing customers.
Raise funds together. According to Teleto, 29% of business failures are due to running out of cash. In addition, NorthOne stated that 37% of startups are funded by the founders themselves, and 10% get funding from friends or family. But it doesn't require much capital to get started. 58% of companies start with less than US$25,000, and 30% start with less than US$5,000.
Make sure that you plan financially for the near and long-term so that you can deal with unforeseen changes and changing needs. For example, if you sell custom beach equipment, you may focus on summer because winter may not be profitable. Further consider the need for continued investment over time. For new mobile phone applications, you need to constantly make new updates and modifications.
From the little things. Most entrepreneurs will tell you to ensure success by starting small and building gradually. With the increase in remote and mixed work, it is very likely that you can start with a sideline and build your business over time. While starting to write your great American novel, or start to develop your IT skills in the evening consulting work. Be ethical when using your time-make sure you are still committed to your daily work, but also use your extra flexibility to try, learn, and increase opportunities.
Hard work is also important. NorthOne reports that 62% of entrepreneurial companies have zero employees. This means that beginner business owners will have to wear several different hats and be responsible for the success or failure of their business.
keep learning. According to NorthOne, only 44% of entrepreneurs have a college degree, so formal studies are not necessarily an obstacle to starting their own work. However, you need to ensure that you are constantly learning about the market, needs, new innovations, and best practice processes to ensure your success. Build your path to success by forming an advisory board and finding successful business people who can share experiences and lessons.
Perhaps the most important factor in entrepreneurial success is courage and perseverance. Starting something new can be frightening and requires continuous effort over time.
Be optimistic, hopeful and positive about the entrepreneurial journey you are about to embark on. You will face difficulties and setbacks, but as long as you are determined, you are likely to be rewarded.