More than 33 million small businesses operate in the United States, creating more jobs than large corporations and accounting for 43.5 percent of the nation’s gross domestic product. But with their limited margins and susceptibility to market pressures, building a business that lasts can be a challenge. From important definitions to expert growth tips, this guide to small business offers everything you need to get started and keep growing.
Entrepreneurs who are launching a new business can find help at the local, state and federal levels. Startup funds, grants and loans can provide the capital you need to test your business idea or to grow and thrive. In addition, there are a number of resources to assist with government contracting and other issues that can come up for your business.
The SBA defines a small business by both annual revenue and employment, with different size standards for each. To determine the maximum average annual receipts or number of employees that your business can have and still qualify for small-business status, check the SBA’s table of size standards.
It’s also a good idea to have a company website to promote your business and engage with customers. Plus, you’ll need to get a variety of insurance policies, including general liability (GL), workers’ compensation and unemployment. Depending on your industry, you might need professional liability and business owner’s insurance as well. You’ll also need to decide on a legal structure for your business. The type of entity you choose affects your taxes, liabilities and how much you can borrow.