| Small and Mid-Size Business Owners Across America, are often refered to as "The Backbone of America". According to the Small Business Administration (SBA), "99.7% of all employers are small business. Small businesses are responsible for 50.1% of the private workforce, and 52% of the country's gross domestic product (GNP) as of 1999. Total small business wealth increased from 3.4 trillion dollars in 1990 to 8.3 trillion in 2000.
So why do five out of six businesses fail within the first year?
1. Lack of Capital 4. The Wrong Business Model
2. Insufficient Cah Flow 5. Competition from the "Big Boys"
3. Poor Management 6. Location, Location, Location
These are just a few of the reasons why businesses fail. How fast can your business get past the the "DBA" (doing business as) registration and the break-even point? According to a California business that monitors DBA creations nationally, over 24,000 DBA's were created each business day in 2003. However, within six (6) months, 20,000 were out of business. Within one (1) year, another 2,000 were gone. That is a failure rate of over Ninety-One (91 %) percent.
How many family members, customers, vendors, and cities were affected by their failure? How many could have been saved if they used the services of a CPA or Business Attorney? Approximately sixty to sixty-five (60-65%) percent of all businesses under a million dollars ($1.000.000) in annual sales do not have a CPA or Business Attorney. How many could have been saved if they had organized their businesses as a LLC, LLP or corporation (they left their personal wealth unprotected)? How many could have been saved if they had used a Insurance Professional to protect their personal and business assets (Key Executive Insurance)?
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