A small business is a privately owned company that typically has fewer employees and less revenue than larger companies. Small businesses can take any legal structure and may be structured as a sole proprietorship, partnership or corporation. Registering a small business opens up opportunities for funding and government programs.
Small business owners face many challenges, but the rewards can be high. In fact, a 2024 Pew Research Center survey found that most self-employed workers are highly satisfied with their jobs. But starting and maintaining a small business comes with financial risk, and the lack of resources makes it more vulnerable to market changes.
There are a number of different ways to finance a small business, including personal funds, investors and loans. Small businesses can also find help through government contracting, tax credits and grants.
When it comes to marketing, small business can compete successfully by leveraging their unique strengths and analyzing the strategies of competitors. For example, small business leaders can leverage the power of social media to reach more people with a more targeted message.
A good place to start is with a business plan that details how your company will grow and what it will cost to get started. You’ll also need to obtain a federal employer identification number (EIN), which is like a social security number for your business, and the necessary permits and licenses. And don’t forget to consider insurance. Most small businesses are advised to have general liability insurance, which covers damage caused by your products or services.