A small business is a privately owned company that typically has fewer than 500 employees and has lower annual revenue than larger companies. It can be structured as a corporation, partnership, LLC or sole proprietorship and can qualify for government funding, tax credits and other incentives. Small businesses drive innovation, jobs and economic resilience across the country.
Often, small business owners have close relationships with their customers. They can leverage social media to build loyalty and reach more people for less money than traditional marketing channels. They can also use digital tools to track and analyze their own performance, which helps them improve the customer experience and grow sales.
Some of the challenges small business face include limited resources and capital, which can hinder their ability to innovate and attract new customers. Additionally, they may be more vulnerable to market fluctuations than large corporations. Small business owners should diversify their revenue sources and create a plan for expanding into new markets.
Before you start your business, make sure to plan out your operations and determine whether you’re eligible for a small business loan. Once you’ve secured funds, find a bank that offers a small business checking account and set up point-of-sale systems. Lastly, consider getting a business credit card to earn rewards and establish a business credit history. It’s also important to register your business, which opens up opportunities for funding and access to government contracts.