5 Principles Of Survival For Small Business

Book excerpt: Does an organization like a small business exist? There are many different definitions for this term. The American Small Business Association (SBA) defines: a one-member private business and an enterprise with more than one to 499 employees are small businesses. A flea market vendor is not like a software design company with 400 employees. It is obviously illogical to include all small businesses under this definition. In some ways, the SBA itself acknowledges the omission of what constitutes a small business in this 29-page definition. And these are actual numbers. You think you don't need to know them when you grow your business, but I encourage you to read on. According to a 2002 Census report, there are 22 million small businesses in operation. If you take a closer look at this figure, there are about 17 million small businesses without employees. Some businesses are simply the covers that accountants and lawyers have set up for tax breaks. Others are businesses that are unable or unwilling to scale up. Although there are no employees, you can still set up a small business if: • You sell part-time candles, cleaning products, or cosmetics and make a profit of several hundred dollars per year; • You quit a job at a company and the company hired you to work as an independent contract worker; • You are retired, but still consulting in your field; • You open a stall at a local arts festival to sell home-made handicrafts; • You buy and resell some things at a higher price to make a profit, such as: cars, rental houses, valuable collectibles ...; • You get a return on your investment. There is no problem with this type of business. They bring money to the owner, so these activities are business, not merely hobbies. Many business activities even help them lead a more comfortable life. But these small businesses rarely hire more employees. In many cases, employers do not want to grow their business. They only intend to earn enough money to live or earn extra income.