New research from the National Federation of Independent Business (NFIB), says the biggest problem facing business is the cost of actually doing business. The results are based on 3,530 responses from small business owners to a survey conducted this year.
Specifically costs that are difficult to control such as utilities and inflation dominate. Also high on the list is federal taxes on business income, property tax and income tax. Tax complexity is also identified as a 'critical problem' for nearly a quarter of the businesses surveyed. This is because while the economic outcome remains uncertain, small business owners are constantly seeking innovative ways to increase sales and reduce expenses.
According to the Bureau of Statistics only 42% of small-business start-ups don’t survive the first two years. Less than half of the remaining businesses make it to four years. So how should a business person view the prospects of being in business? Scott Shane on Kiplinger .com says there are certain common myths to be aware of to make the decision easier.
Myth 1. You need a lot of money to finance a new business. This may not be the case. Successful business owners who had to start their businesses without a lot cash had to borrow. They rent instead of buying.
Myth 2. Banking institutions don't lend money to start-ups. What are your chances of financing a small business? data show banks account for 16 percent of all financing provided to companies 2 years old or younger. Although there may be better ways to get funding, banks are an avenue to consider.
Federal Reserve Myth 3. Business success depends on the owner’s talent. While talent does have some bearing on business success, it is also necessary to consider the industry you choose, the market and location of your company.
Indications are that if you are involved in communications, telecommunications or technology your success will be greater than if you were to buy a small motel in outback Australia. Talent doesn’t have much bearing on the growth of a new business.
Sure, successful people do work long and hard and sometimes at the cost of
family, social and personal relationships. This is their choice.
I know many people who work for wages and who work more than 50 hours a
week. Even single parents dedicate twice those hours to their very important role.
Hard work being associated with success is a myth.
Myth 4. Work Creates Stress
The catch cry of most business owners or executives is, "I work more than 60
hours a week" or more to the point, they say with pride, "Success comes from
hard work and lots of it".
Your partner in business success
Dan
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