Did you know the Small Business Administration (SBA) publishes statistics on the scope and health of small businesses as a focus area? If you did, you are probably as horrified as I am by the decades of systemic failure brought about by the government’s lack of support and involvement in small business growth. These catastrophic and horrific rates of failure represent not only an individual’s lost time and hard work, but most importantly, their lost dreams.
I know their level of sorrow, and frustration, because while I was growing up, my parents had several start-up businesses, and all of them failed. Years later, having worked in the business world, I have experienced small businesses that were perceived as failures due to CEO greed which trickled down to poor financial management and poor working conditions for their employees. However, on the upside, I have also worked for five Fortune 500 companies, and I have learned their insider secrets.
According to the SBA in 2022, 99.9% of the US businesses are small businesses and there are 33 million small businesses in the US. Doing the reverse math, that is only 20,516 large corporations. Further 31% will fail in 2-years; 50% will fail in 5-years; and 65.5% will fail in 10-years. These statistics are STAGGERING!
Yet these small businesses are expected to compete with large corporations who can pay workers higher wages and offer them career growth, while receiving tax benefits which could never be received by a small business. In addition, large businesses can negotiate volume discount pricing for raw materials and can navigate longer payment terms. For example, Walmart, GM, and GE may ask their vendors to wait up to 120 days to get paid. This doesn’t even address their additional discounts for early payment terms, which increases their bottom line by several percentage points. That is a full quarter of the business year! How do you pay your employees and for raw materials if you have to wait FOUR MONTHS to get paid by your client? The answer, you cannot.
Worse yet, over 70% of small business are one- owner 1099 independent contractors. These small business owners are not only required to pay employment taxes but self-employment taxes as well! That is like getting a double whammy! If you are doing simple math, that would mean a business owner making $100,000 in client revenue, would be required to pay $7,500 in self-employment taxes – alone. So, what can be done to escape these catastrophic failure rates?
The answer is to level the playing field by using the same insider secrets the large corporations use, which the SBA forgot to tell you about! I have learned those secrets and I am currently sharing them with my viewers free of charge on my new YouTube Channel – The HunterHennessy Education Channel. Visit my channel at https://www.youtube.com/channel/UCU9BslJHlS76ly9anmQHLQA
Come and join my YouTube community where I deconstruct the SBA Business Plans that are designed to fail. Each week I will be offering you insider information on the proven methods of how successful business owners maximize their savings and keep their costs low. My goal is to help small businesses succeed.
Best yet, if you are a small business owner who is also a parent, I can offer you first-hand information to help give you a better understanding on how to engage with your children which will provide them with learning experiences that will help them excel in college and in life. I’m living proof that a parent using business as a their ‘babysitter’ while creating a family business can actually result in an award-winning marketer, business executive and college professor.
Amy J. Keely. MBA, M.Ed. Ph.D. ABD is an award-winning marketer, motivational and expert guest speaker, professor, generational workforce management expert, and artist-philosopher. She is a published author and offers a variety of consulting services, educational courses, and motivational speaking with the purpose of changing discussions to help small businesses succeed and offer healthier lifestyle balances. Please visit her YouTube Channels and Podcasts: Being Paleo and the HunterHennessy Education Channel plus these sites to learn more: https://www.professorkeely.com/ | https://www.hunterhennessy.com/ | https://www.beingpaleo.com/.