Business: Expectations vs. reality

https://www.nmap-corp.com/services/One thing a global pandemic has been good for is refocusing people’s attention. With so many finding themselves with hours cut back or completely unemployed, you may be one of the hordes of people suddenly thinking about business opportunities. Let’s have a chat about the reality of getting into your own business.

According to the U.S. Small Business Administration (SBA) there are over 30.7 million small businesses in the U.S.A. Small businesses actually make up 99.9% of all US businesses! The SBA defines a small business as any employer with fewer than 500 people working for them – which is still a large business endeavor. In the UK, a small business has fewer than 50 people employed. What does this mean to you? If you are looking at starting your own business as a freelancer or with a handful of employees, bear in mind that you will be comparing your statistics against US business statistics of high value software startups as well as the local lawnmowing contractor.

How much money will I make?

When the American Community Survey (ACS) completed census information they found that the medium income for self-employed individuals ranged from ~$25,000 to ~$51,000 annually, depending on if the business was incorporated or not. As the U.S. Census Bureau records the annual median personal income in USA as ~$33,000, whether a business opportunity is going to be the right move for you will depend on more than just your financial motivation.

SBA Team

It’s more complicated that I realised!

If you have started your business journey with an idea and a Google search, then you are probably about to give up. There are a lot of business lawyers with excellent SEO who are on the front page of search results. With every single one prepared to give you the complete list of what steps you need to take in order to start up your business.

However, it doesn’t need to be so complicated. Better, there are several government organizations (federal, state and local) that offer free advice and guidelines for business owners. Interestingly, you do not need to be an American citizen to start a USA company or business.

Resources to start with:

Inland Revenue Service (IRS)

You do not need to be a tax or corporate lawyer to start a business. However, if you start at the source of all tax legislation you will be in a secure position to understand what your obligation are. One pro tip for new business owners, set aside more money that you first thought during your first year. There are always unexpected bills associated with legitimate setup costs that will really hurt if you haven’t kept a little funds aside.
https://www.irs.gov/businesses/small-businesses-self-employed/checklist-for-starting-a-business

USA Gov

Yes, the United States of America has a government site set up to help new business owners, of all sizes. The information provided here is a great place to start, as it includes links to useful resources for your niche area. This might include funding for military veterans, how to avoid work-at-home scams, what health insurance might look like, and general advice for all aspects of your new life.

https://www.usa.gov/start-business

SBA

Small Business Administration (SBA)

These folks are genuinely here to help you. Small business forms the backbone of American industry, they want you to success. That’s why their very first tip is to do market research. As social media marketing expert Derek Videll regularly says, if you are just running with an idea, you’re doing marketing resource with an audience of one. Of course, just asking your families and friends if it’s a good idea is also wasting your time, unless they are specifically the target audience.

https://www.sba.gov/business-guide/10-steps-start-your-business

Whatever your new venture is, you can make it happen! The world is changing rapidly, so be prepared to pivot a few times until you find the right path. But you can do this! Make sure you include us in your ‘Thank you’ speech once you’ve made the bigtime.

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