28 Apr Celebrating Small Business Week: facts, advice, and inspiration
National Small Business Week, which has been celebrated by the US Small Business Administration, (SBA) for more than 50 years, is next week: from May 2nd-May 7th, 2022. This year, we celebrate the resiliency and tenacity of America’s entrepreneurs who are doing their part to power our nation’s historic economic comeback. After two (tough!) years of a global pandemic, let’s all make a point to thank a small business owner that we know. After all, they are adding new perspectives and commerce to our communities.
A few fun facts for Small Business Week:
- A small business is defined as one with less than 500 employees, according to the SBA.
- Small business is responsible for 64% of all new jobs created in the USA!
- Over 90% of the business population represents small and medium-sized businesses, meaning that small businesses drive global economic growth.
- Approximately 61.2 million people in the USA are employed by small businesses.
With these kinds of numbers in the small business community, chances are, your next-door neighbor or best friend is either employed by or owns a small business. These folks have been hit hard by the global pandemic over the past couple of years.
Just how hard is it to be a small business owner?
Starting and keeping a business afloat is tough in any circumstance, let alone over the past couple of years of the pandemic:
- More than 20% of all small businesses fail in the very first year of operations, and nearly 50% fail within the first 5 years of operations.
- In March of 2020, over 70% of U.S. small businesses shut down. Many small businesses have no employees (81% of all small businesses – or about 25.7 million businesses – have no employees). This meant that small business owners across the USA faced burnout and exhaustion in higher numbers than their counterparts.
- 87% of all small businesses are running check-to-check. Only 13% of small businesses have enough money in the bank to weather the next payroll cycle, rent cycle, or production breakdown. Cash flow is an issue!
Goldman Sach’s 10 Thousand Small Business program just completed a survey of small businesses and found that:
- 74% of small businesses are currently hiring full-time or part-time employees – and 90% of those hiring are finding it difficult to recruit qualified candidates for open positions.
- 88% of small businesses say inflationary pressures on their business have increased since January 2022.
- 73% of small business owners say higher energy prices are negatively impacting their businesses.
- 65% of impacted small businesses say it’s a problem for their business that suppliers are favoring large businesses over small businesses due to their larger volume of orders.
- 93% of small businesses agree that the federal government should do more to tailor programs and services to better reflect the realities and needs of small businesses.
Yikes! Are you breaking out in a sweat just reading these statistics? Resiliency is what drove you to become a small business owner, and resiliency will help you overcome these challenges! Join our community of entrepreneurs – we love talking about small business trials, tribulations, and triumphs. Make sure you are part of the 13% of business owners who have money in the bank and are sustainable! And remember that everything worthwhile is hard before it is easy.
I love helping my fellow entrepreneurs and want to recognize the small businesses that have persevered through the ups and downs. That’s why, in honor of Small Business Week, I’m sharing some insights and resources that I’ve found helpful as I’ve grown my business over the years.
Words of wisdom from fellow entrepreneurs
One piece of sound advice can have lasting effects on our businesses – and our lives. In honor of Small Business Week, I asked these small business owners to share the best piece of advice they had received about small business success.
Essential Traits of an Entrepreneur
This list comes from Entrepreneur guru Gino Wickman, the author of Traction and builder of EOS (Entrepreneur Operating System). I’ve found cultivating these traits has made me successful – and I bet you will, too.
- Visionary. You have the ability to connect the dots and see the big picture. You are imaginative, creative, and inventive.
- Passionate. You are energized by solving a problem, filling a void, and fixing a problem.
- Problem Solver. You are optimistic by nature. Not only are you able to think of new ideas and innovations, but also you are able to deal with barriers and overcome obstacles.
- Driven. You have a strong sense of urgency. You’re tenacious, self-motivated, and goal-oriented.
- Risk Taker. You are a disruptor, a change maker. You are willing to fail and try again. My word for the year is to “Fail Forward”.
- Blame No One (Responsible). No excuses, no complaints, we accept the burden of becoming completely financially accountable. “The true entrepreneur is a doer, not a dreamer”.
Angie’s Journey Into Profitability and Sustainability
Knowing how crucial small business is to our communities, I thought I might tell the story of what brought me on my own entrepreneurial journey.
I was working in Corporate America and wanted more freedom to be the master of my own ship, as a mother and a businesswoman. My corporate job required a lot of travel. I often found myself at an airport, pushing vending machines over a few inches so I could find a plug in the wall for my breast pump. I started my business in 2006 after attending a 3-day conference about starting your own professional services firm, organizing personal finances, and acting as a bookkeeper to other businesses. With two young kids at the time, I wanted the opportunity to pick my own schedule, be with my babies more often, do work I was passionate about, and make some money for our family expenses. In short, I wanted to be my own boss!
My husband and I agreed that I could quit my corporate job if I could secure two clients. I was able to secure two clients within two months of opening my business, neither of which did I end up doing business with for more than a couple of months. At that time, there were no Facebook groups, Meetups, or other support groups for young mompreneurs who wanted to do meaningful work, earn a sustainable living, AND be a mom. That meant I had to figure it out as I went along. I made more mistakes than I care to count! I was overwhelmed and exhausted.
In 2016, I went to a conference (in the Bahamas!). While there, I saw Mike Michalowicz speak, and it was my first introduction to Profit First. My mind was blown! After that I spent the next 3 years building a profitable business, increasing my profit by the end of 2019 by 360%!
Business during the pandemic
The pandemic highlighted the desperate need many small businesses had to understand their financials. As a result, we got busy helping people with clean books and biz sustainability. We helped secure over $17Million for 77 of our clients, all while doubling our business. Then, business went CRAZY! People were not prepared to run a profitable business at the time. I found myself working crazy hours once again. I wanted to build a sustainable business, so I followed another one of Mike’s processes, called Clockwork. The goal was to allow myself to take a 1-month vacation, which I did in July of 2021. I am never looking back! Now, I plan on taking a 1-month vacation every year. Additionally, I’m building the key members of my team up to be able to take a 1-month vacation.
Read more of Angie’s reflections and lessons learned from 15 years of entrepreneurship.
How are you celebrating Small Business Week?
Take some time to celebrate your wins and recognize the hard work of you and your team. Lastly, check out some of the resources available to you.
