The United States is home to a staggering 33.2 million small businesses, embodying the vibrant entrepreneurial spirit that continues to drive our economy. Launching a new business is both an exciting adventure and a formidable challenge, filled with dreams and potential roadblocks. Many new entrepreneurs share common aspirations and concerns, and it's crucial to lay a solid foundation to thrive in a competitive landscape.

Understanding this, we wanted to share three foundational tips to help you build your small business successfully.

Cost Management in Labor and Inventory

One of the most significant financial challenges you'll face is managing labor and inventory, as labor can account for about 70% of business expenses. For those starting out, consider utilizing family, friends, or even AI to meet initial labor needs. Efficient inventory management is crucial, with strategies focusing on smart storage solutions and streamlined shipping logistics.

Essential Marketing Strategies

Effective marketing is critical in keeping your business afloat and flourishing. Surprisingly, only 71% of businesses have a website¹, while 20% rely solely on social media channels². To maximize reach and enhance customer engagement, it is vital to develop a comprehensive marketing strategy that includes both an engaging website and an active social media presence. Remember, 76% of customers will visit a website before visiting a physical location³.

Financial Organization and Planning

Separating personal and business finances is a must for understanding and managing your business's financial health. Benefits of this separation include easier tax preparation and liability protection. We recommend engaging with a financial advisor early on to create a robust financial plan, especially if you have limited funds. Addressing financial complexities head-on will pave the way for smoother operations.

Integrating these practices from the onset will significantly strengthen your venture's foundation in its formative stages. Informed decisions and strategic planning are essential to overcoming the hurdles of entrepreneurship. We would be happy to assist you in navigating through these financial complexities—just reach out to our financial advisory team today.

Sources: 

1) https://www.wix.com/blog/small-business-website-statistics

2) https://www.forbes.com/advisor/business/small-business-statistics/

3) https://www.prnewswire.com/news-releases/76-of-consumers-look-at-online-presence-before-physically-visiting-a-business-301272462.html 

Disclaimer:

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities.