Small businesses have long been the backbone of the U.S. economy. The Small Business Administration estimates that 30.2 million small businesses are currently operating across America and that they employ 47.5 percent of the country’s workforce, which is the equivalent of 58.9 million workers.
While the numbers provided above are impressive, others are equally indelible but for different reasons. Approximately 80 percent of small businesses in the United States manage to survive their first year of operation. Only about half of them make it to the five-year mark, however. From there, just one out of every three small businesses reaches their 10-year anniversary.
With so few small businesses making it over the long-haul, some aspiring entrepreneurs want assurances that their enterprise will survive before they take the leap toward self-employment. Unfortunately, there are no guarantees that a given venture will survive.
Although no one can promise that your small business will be a success, there are some steps you can take to improve the chances that your business will still be around decades from now. One of the smartest things you can do is learn about starting and managing a business.
About Money Smart for Small Business
To help guard against business failure, you should consider completing the Money Smart for Small Business program. This training program was developed by the SBA and the Federal Deposit Insurance Corporation. Launched in 2012, the Money Smart for Small Business program consists of 13 modules that are designed to teach current and future entrepreneurs about starting and running a business.
Here are the modules that are currently included in the program:
- Is Owning a Business a Good Fit for You?
- Planning for a Healthy Business
- Banking Services
- Organizational Types
- Time Management
- Financial Management
- Record Keeping
- Building Credit
- Risk Management
- Tax Planning and Reporting
- Selling your Business and Succession Planning
- Managing Cash Flow
Recent Changes to the Training Program
Earlier this year, the FDIC and SBA made a few changes to two of the modules that are part of the Money Smart for Small Business curriculum, Banking Services and Building Credit. The Banking Services module now presents information about banking products, sidestepping fraudulent schemes and non-traditional banking alternatives.
The Building Credit portion of the curriculum explains how a person’s personal credit history can impact their business. This section now also includes a thorough explanation about how a business’s credit is reported. The module reviews the manner in which lenders examine and determine how creditworthy a small business is as well.
“The updated version of Money Smart for Small Business is a valuable resource that the FDIC and the SBA have produced to help ensure entrepreneurs are fully equipped to compete in and contribute to the nation’s economy,” said Allen Gutierrez, Associate Administrator for the SBA’s Office of Entrepreneurial Development.
504 Capital Corporation: Your Source for Small Business Funding
Since 1983, our Chesapeake, VA financial center has been a leading source for small business funding for all sorts of borrowers in North Carolina, Washington, D.C., Virginia, Maryland, West Virginia and select counties in Pennsylvania. With a lack of capital being one of the top reasons small businesses often fail, we’re extremely proud to offer solutions through SBA 504 lending programs that can help small businesses like craft stores and many others thrive.
Contact 504 Capital Corporation to learn more now!