Getting Over Common Startup Financial Hurdles
As the owner of a new business, it’s natural to have a variety of fears. Though all of them require your attention, those associated with funding should move to the top of your priority list.
Money, or rather, lack thereof, is one of the primary reasons that startups dissolve before they get up and running. According to data from the U.S. Bureau of Labor Statistics, approximately 20% of small businesses in the United States fail within one year of opening. And by the five-year mark, roughly 50% are no longer operating.
With this in mind, it’s critical to understand the common financial challenges you’ll face as a business owner and the steps you can take to avoid them. Check out the five steps that deserve your attention at SmallBizDaily.com.
Why Women Entrepreneurs Are Critical To Economic Growth
A McKinsey Global Institute study found that advancing women’s equality could add $12 trillion to the global economy by 2025. In a best-case scenario, that number could jump to $28 trillion dollars. “This impact is roughly equivalent to the size of the combined Chinese and US economies today,” according to the report. And it could be realized by ensuring greater equality and opportunities for women.
Instead of governments looking for foreign direct investments and tax cuts to grow their economy, I believe they should focus more on policies to advance women’s participation. Why? Because women are often at a disadvantage. Read more at Forbes.com.
New Small Business Report Has Silver Lining
A new State of Small Business Report has been released by Alignable and though it offers some bleak findings, there is some good news too. The report finds small business optimism has emerged around several of President Biden’s PPP changes, and the new May timeline for widespread vaccine distribution. This shift in vaccine availability should help 28% more small businesses to recover in 2021, according to the Alignable poll taken during the first week of March.
However, Alignable’s report reveals that 78% of all small businesses are still experiencing negative financial effects (up 10% from last month). And 58% report feeling significant impact (up 12% from Feb.). Read more at Franchising.com.
“When it comes to success, a great many people say ‘Why me?’ when the most successful people in life say, ‘Why not me?’“
The State of Franchising, Winter 2021: Franchisor Survey Analysis
Our latest Pulse of the Franchise Industry survey finds cautious optimism is the outlook of the hour for franchisors ready to get back to better days of doing business in the months ahead.
The study, conducted in February, garnered the feedback of 155 franchise executives on various topics related to continued pandemic-related disruption, franchise sales, recovery, and future growth plans amid vaccine rollout efforts.
The survey participants, a majority with more than 10 years of franchising experience, represented eight industry sectors: Commercial/residential services, Retail Food Products & Services, Quick-Service Restaurants (QSR), Personal Services, Business Services, Real Estate, Full-Service Restaurants, and self-described “Other.”
So, what does the survey tell us? Quick-hit analysis reveals most franchisors appear to have put the worst of the economic fallout behind them, as they continue to emerge on the other side of the pandemic after a year of operational chaos. Read more at blog.Franconnect.com.
Cannabis use both helps and hurts entrepreneurial creativity
The study found that cannabis-using entrepreneurs generated new business ideas such as a weightless, gravity-free virtual reality workout, that were more original, but less feasible, compared to those who do not use cannabis.
“Originality and feasibility are both crucial in entrepreneurship — one without the other limits potential value creation,” said Benjamin Warnick, lead author of the study and assistant professor in the Department of Management, Information Systems and Entrepreneurship at the WSU Carson College of Business. Read more at ScienceDaily.com.
Daily Message from Acceler8Success Founder, Paul Segreto
Listening to friends that have coached me through challenges I’m gaining more confidence in realizing that a clear mind and well-rested body enables me to get more things done than I’ve ever imagined possible. Unfortunately, it easy to slide back into old habits, but knowing and acting upon what must be done to get back on track are essential to regaining and maintaining balance. As the end of the first quarter is just ahead and the economy is opening up once again, it is definitely the time to get back on track in order to realize possibilities and capitalize on opportunities.
Top Risks for Small Business Owners
Every business faces risks. Risk is the chance that a loss, injury, or peril will occur, or that an outcome will differ from what the business owner expected, often preventing a company from meeting its financial or operational goals.
If business owners identify the risks most likely to affect their company, they can take steps to minimize the effects. Risks may be external or internal, with external risks originating outside a firm, and internal risks arising from within. Learn about the external and internal risks companies may face this year and how they can be managed. Read more at TheBalanceSMB.com.
How Entrepreneurs Can Solve the Higher Education Problem
Higher education is in need of a transformation. The trifecta of tuition inflation, increasing student debt and diminishing confidence in the value of a traditional degree leaves the industry ripe for reimagination. Federally subsidized 2- or 4-year college degrees have been discussed as part of a new agenda to help increase access to education. Yet, companies also have the unique opportunity to play a role in increasing equitable access to higher education — and their businesses can benefit as a result.
Corporate America already spends more than $180 billion annually on educating and training employees, but most business leaders don’t experience a significant return on the investment. Instead, most training programs are poorly aligned with business and learner objectives, such as addressing specific skills gaps or improving employee recruiting and retention. Read more at Entrepreneur.com.
7 Ways Successful Entrepreneurs Refuel Over the Weekend
As entrepreneurs, we don’t treat weekends like other people do. When the concept of a weekend began, it was because the workweek (Monday through Friday) was supposed to be for labor, and the weekend (Saturday and Sunday) was dedicated to rest.
However, when you’re an entrepreneur, you’re always on. The weekend just means two more work days, and many aren’t dedicating any time to rest. But when we start burning the candle at both ends—eliminating all chances for rest and recuperation—we start working against ourselves and snuffing out our creative energy. Read more at Success.com.