The United States is a land of opportunity for entrepreneurs, with an impressive figure of 33.2 million small businesses that serve as the backbone of the economy. Launching a new business is an exciting venture, filled with the thrill of creating something out of nothing, alongside the challenge of navigating the competitive business landscape. At our financial firm, we understand the dreams that drive new entrepreneurs, alongside their concerns. We are here to help lay the solid foundations vital for small businesses to thrive.

To that end, we want to share three essential tips for those embarking on the journey of building their own small business.

Cost Management in Labor and Inventory

One of the most significant financial aspects of running a business is managing costs, particularly in labor and inventory. Labor alone can constitute about 70% of expenses. We suggest starting small by utilizing family, friends, or even AI for initial labor needs. Additionally, effective inventory management is crucial. Consider strategies for optimizing storage solutions and streamline shipping logistics to ensure efficiency.

Essential Marketing Strategies

Effective marketing plays a critical role in business success and can help prevent failure. Surprisingly, only 71% of businesses have a website, and 20% rely solely on social media. To maximize your reach and customer engagement, develop both a website and a social media presence. Statistics show that 76% of customers will check a website before visiting a physical location. Investing in your online presence is an investment in your customer base.

Financial Organization and Planning

Separating personal and business finances is crucial for understanding and managing business financial health. This separation simplifies tax preparation and provides liability protection. We advocate for the early engagement with a financial advisor to develop a robust financial plan, especially when funds are limited. Our financial advisory team is here to assist you through these complexities.

Applying these best practices is invaluable in building a strong foundation for your small business. Remember, informed decisions and strategic planning are key to overcoming the hurdles of entrepreneurship. Reach out to our financial advisory team for assistance in navigating the financial complexities of business ownership—embrace professional advice early in your business journey.