See also on SmallBusiness.com | Encore entrepreneurs who made starting businesses their retirement “hobby.”

The researchers examined “high growth” start-ups established between 2007 and 2014 and analyzed the top 0.1 percent — defined as those with the fastest growth in employment and sales.

Quote

Using data anonymized data of 2.7 million business founders, the researchers calculated that the founders’ average age was 42. And for the founders of the 0.1 percent fastest-growing firms, the average age was 45. Firms that were successful enough to have an initial public offering or be acquired by a larger company showed the same pattern: Their founders were generally middle-aged.

The research suggests that entrepreneurial success isn’t just a function of raw intelligence and a propensity for risk-taking. It depends on a variety of ingredients, many of which appear to improve with age.

See more in the NYTimes.com article, “Founders of Successful Tech Companies are Mostly Middle Aged”

Also on SmallBusiness.com | Trademark and Copyright Information
On the SmallBusiness.com WIKI | Copyrights and trademarks

First things first | Don’t confuse the term “trademark” with the act of registering or licensing a company. When you register for certain state permits or licenses, you are not registering your company’s trademark.

Reasons why a small business might prefer a state trademark over a federal trademark

Reasons a small business might prefer a state trademark over a federal trademark include these:

Not qualified for a federal trademark | Federal trademarks are issued only to trademarks involved in interstate commerce (businesses that cross state lines). Therefore, if you don’t qualify for a federal trademark because you do not engage in interstate commerce, your only choice is to register your trademark at the state level.

Quicker to register than a federal trademark | Obtaining a federal trademark may take from 9 to 16 months, whereas obtaining a state registration is usually a quicker process, sometimes taking only a few weeks.

Less hassle, less expensive | Getting a state trademark is less complicated and costly than a federal registration

Reasons why a small business might prefer a federal trademark over a state trademark

Reasons a small business might prefer a federal trademark over a state trademark include these:

All things equal, federal trademark take precedence over a state trademark | Federal registration has priority over a state trademark registration if the federal registration was obtained prior to the state’s application date

Not useful in international disputes | State trademark registrations cannot form the basis for filings in other countries.

Not useful in custom disputes | A federal trademark registration can be used to stop unauthorized imports at the U.S. border, but a state trademark registration cannot.

Limited geographic protection | A state registration protects the mark–at most–within the borders of the state and does not protect the mark in the rest of the United States.

Use of the ® symbol | The owner of a federal trademark registration may use the ® symbol. A state trademark registration does not confer the right to use the ® symbol.

Links to trademark information in all 50 states

Photo: ThinkStock

Did you know that the first Friday of August is International Beer Day? We’ll confess: neither had we until Friday night. The event takes place in pubs, breweries, and backyards all over the world (which, come to think of it, happens most every Friday night). But because we’re always glad to raise a glass to celebrate a group of heroes of small business, here’s our belated: Cheers and Happy International Beer Day, wherever you are! And if all this celebrating has you thinking about starting a craft brewery, we have some suggestions.  

Craft breweries in the U.S. have bubbled up from an off-beat semi-hobby to a major industry, comprised primarily of small businesses. However, if you are thinking of starting one, the first thing you should do is join the Brewers Association, the trade association of craft beer brewers and related businesses. The Brewers Association has the educational resources and networking opportunities can help balance your passion with insight and wisdom from the experts.

If you are starting any type of business, check out the SmallBusiness.com Guide to Starting A Business.

Joining a trade association as an individual is a great way to begin research into starting any type of business. Spending time with owners or executives in an industry is a unique way to access experienced individuals who have gone through the process you are undertaking.

Another great premium of membership in a trade group are publications and digital news published by the organization. For example, membership in the Brewers Association includes a subscription to The New Brewer, the journal of the Brewers Association. The magazine (and additional copies for staff) is included with a paid Brewers Association membership. Single issues are also for sale online.

And once again, cheers!

GettyImages

Also on SmallBusiness.com

Craft Brewing Leads the Way to a New Artisan Economy

Two-thirds of Americans dream of opening a small business, according to a recent study by Atomik Research commissioned by the UPS Store. And among individuals ages 37-57 (Generation Xers) 75% of those surveyed had the dream of opening a small business.

“Gen Xers (individuals between ages 37-57) feel the most optimistic and most willing to branch out and start their own small business,” according to Dr. Luke Pittaway, Ohio University College of Business Copeland Professor of Entrepreneurship. “This portion of the workforce is most likely well established in their career, financially equipped and starting to think about how they’ll spend the final stages of their career. In many cases, even when Gen Xers and Boomers reach retirement age, instead of grabbing their golf clubs or boarding a cruise ship, they’ll be looking for their next professional act. More and more we’re seeing that later career stages and retirement is the time professionals open a small business, and for many, it’s the first time.”

 See related | The SmallBusiness.com Guide to Starting a Business

American adults of all ages dream of starting a small business

66% | Survey respondents who said they dream of starting a small business

Respondents who are 37-57 especially want to start a small business

75% | Generation Xers who dream of starting a small business

Of these Generation Xers, what types of businesses would they start

29% | Businesses that provide technology solutions
22% | Food/restaurant services
21% | Product/consumer goods

Reasons respondents give for starting a small business

38% | Being their own boss
17% | Believing in the power of their own idea
15% | Creating their next career path

Top fears related to opening a small business

45% | Financial insecurity
39% | Financial commitment required
37% | Fear of failure

Both men and women are optimistic about opening a small business

47% | Percentage of men optimistic about opening a small business
43% | Percentage of women optimistic about opening a small business

Where would they operate a small business?

56% | Home-based business
30% | Brick and mortar retail
20% | e-commerce business

istock

Also on SmallBusiness.com

Half of U.S. Millennials Want to Start a Business During the Next Three Years

In response to our Top 20 most frequently asked questions about Small Business article, we often are asked where researchers can dig deeper into certain answers we provide. (The answers have links to sources, but it’s a challenge to find just the right answer you may be seeking when plowing through the massive vaults of data maintained by the U.S. Bureau of Labor Statistics.)

One of the most consistently asked questions has to do with the survivability of a new business. Apparently, someone once-upon-a-time said that (fill-in-the-blank) businesses fail within (any-number-you-make-up) years. There are many reasons this statistic is wrong (no matter what you put in the blanks), but here are a few obvious ones: Businesses in one industry have survivability rates different from businesses in other industries. And different regions of the country have recessions and booms at different times. And different locations within one section of a town have closure rates a block away. You get the idea.

The good news: long version

Another thing that “failure” statistics users fail to mention. The vast majority of Bureau of Labor and Statistics data is focused on job creation and “closures” of business.  And “closures” are not always failures. For example, closures of profitable businesses occur frequently. Mergers and acquisitions of businesses can result in one less business, but that’s not the same as a failure to the BLS, the most comprehensive source of statistical data related to business and job creation, survivability and length of operation.

Want to go for a deep dive into statistics related to business survivability? If so, the links below are to information maintained by the BLS that are related to jobs, businesses (or establishment)  and survivability rates in a broad range of industries and in all 50 states.

The table of size standards can also be found online in the Small Business Size Regulations published by the Electronic Code of Federal Regulations. You can also check whether your business is small using the size standards tool.

The great news: short version

Want to skip the thousands of spreadsheets linked below? In 2014, the Washington Post’s Fact Checker did the math to show that businesses don’t fail as often or as fast as the pseudo-experts may claim. Here’s what they discovered:

“As far as we can tell, there is no statistical basis for the assertion that nine out of 10 businesses fail. It appears to be one of those nonsense facts that people repeat without thinking too clearly about it.”

Washington Post Fact Checker

Jump to state-by-state data

National Data by Industry

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Agriculture, forestry, fishing, and hunting

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Mining, quarrying, and oil and gas extraction

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Utilities

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Construction

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Manufacturing

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Wholesale trade

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Retail trade

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Transportation and warehousing

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Information

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Finance and insurance

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Real estate and rental and leasing

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Professional, scientific, and technical services

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Management of companies and enterprises

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Administrative and waste services

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Educational services

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Health care and social assistance

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Arts, entertainment, and recreation

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Accommodation and food services

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Other services (except public administration)

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Establishment age and survival data by state

Alabama

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Alaska

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Arizona

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Arkansas

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

California

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Colorado

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Connecticut

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Delaware

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

District of Columbia

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Florida

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Georgia

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Hawaii

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Idaho

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Illinois

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Indiana

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Iowa

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Kansas

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Kentucky

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Louisiana

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Maine

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Maryland

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Massachusetts

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Michigan

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Minnesota

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Mississippi

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Missouri

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Montana

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Nebraska

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Nevada

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

New Hampshire

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

New Jersey

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

New Mexico

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

New York

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

North Carolina

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

North Dakota

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Ohio

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Oklahoma

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Oregon

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Pennsylvania

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Puerto Rico

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Rhode Island

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

South Carolina

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

South Dakota

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Tennessee

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Texas

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Utah

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Vermont

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Virginia

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Virgin Islands

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Washington

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

West Virginia

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Wisconsin

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Wyoming

• Table 1. Private sector gross jobs gains and losses by establishment age
• Table 2. Private sector gross jobs gains and losses, as a percent of employment, by establishment age
• Table 3. Number of private sector establishments by direction of employment change, by establishment age
• Table 4. Number of private sector establishments by direction of employment change by establishment age, as a percent of total establishments
• Table 5. Number of private sector establishments by age
• Table 6. Private sector employment by establishment age
• Table 7. Survival of private sector establishments by opening year

Last Modified Date: November 8, 2017

“What types of business can succeed in a community with a population less than 100?” That’s a question Becky McCray is asked often. The expert in rural and small town business creation and growth (and a small town multi-business owner) says starting a small business anywhere is a challenge. But technology advancements, the growth of online marketplaces, and logistic innovations during the past two decades have shrunk the world. Also, the growth of the “buy local” movement has provided the incentive to city retailers,  food markets and restaurants to seek relationships with nearby suppliers in rural areas and small towns. Becky, a longtime friend of and contributor to SmallBusiness.com, provides the following advice about starting a business in a very small town.

Innovative Rural Business Models

To help people consider the creativity necessary to start and grow a small business in a town, I use examples of companies and towns that are Innovative Rural Business Models. These are small business owners and communities that display the following characteristics.

They Think Tiny

Expecting one single business to fill an entire building is a barrier to entry. So innovative rural businesses find ways to divide large spaces up, allowing many different businesses to fill just one tiny space. For example, in Washington, Iowa, there is a business called The Village. The huge old department store sat empty for decades because no one could fill all 15,000 square feet. It has now been divided up into a little “village” of shops that have only a few hundred square feet to fill. These smaller spaces give a lot more people the opportunity to try out a business idea.

The Villiage, Washington Iowa

They Think ‘Temporary’

Businesses may pop-up for a day, week, or season. The old image of a traditional business had them lasting for years, maybe decades–with little change. Innovative Rural Business Models accept that new businesses can come and go in a flash as the owners learn something, develop more assets, and gather more fans and customers for their next venture. Think about booths at events as opportunities to test entrepreneurial ideas and products. Almost every town has some kind of special event that could allow booths that enabled more business experiments to happen.

ARTesian Galleries, Sulfur Oklahoma

They Find Ways to Work Together

Rural people know how to work together, how to rely on each other. That’s why we excel at this model, where separate businesses share a space. Small towns have many examples of a store inside another store, a business inside a business, as well as co-working spaces, maker spaces, shared studios, galleries, and shared commercial kitchens. Commercial kitchens can be expensive to certify and may sit idle much of the time. That’s another barrier to entry for traditional businesses. Sharing kitchens can lower that barrier, allowing many new experimental businesses to pop-up. Co-working and maker spaces bring together diverse small businesses to share the assets of a physical location and to connect with each other. Shared art studios and galleries, like the ARTesian Galleries in Sulfur, Oklahoma, extend the sharing and networking benefits to artists.

The Peach Truck (ThePeachTruck.com)

They go mobile with trucks, trailers & social media

In big cities, “food trucks” and “trailer shops” have become an accepted and popular part of the retailing ecosystem. Rather than depending on having a market in one town only, innovative businesses are hitting the road to round up customers. Retail stores and boutiques now commonly operate from a truck or trailer. But you can’t just drive up your truck into people’s yards (unless, perhaps, you are the ice-cream man). You must reach out to them with your unique story told in your personal way. The Peach Truck has become a four-state operation by developing a transportation network and working with peach farmers in Georgia. The credit part of their reason for their growth to Instagram. Their photos are beautiful and have led to nearly 60,000 followers who can’t wait for the summer and the arrival of the Peach Truck (and canopy stores) to arrive. Many of their Instagram posts are about the men and women in small towns who grow their peaches.

Service businesses are using this model, too: wedding planners, financial consultants. Just about any kind of business can go mobile, expanding the market size of a small business in the smallest of towns.

They see opportunity beyond the town limits

Remember that you don’t have to rely on your physical marketplace. There are plenty of location-independent ideas. If you have skills you can use via computer, you can be anywhere. Writers, graphic designers, programmers, consultants, web designers, marketers, virtual assistants, and more people can build a business anywhere they can find internet access, even if the town itself is very small.

They practice creative ownership

For rural areas where people don’t have a lot of personal assets or wealth, the traditional model of risk of ownership may be too much for one person to bear alone. That’s why community ownership, cooperatives, and employee-owned models are appealing. Cody, Nebraska (pop. 154), has a community-owned and high shool student-run grocery store, the Circle C Market. The students even built the building! Now, they run the store.

Circle C Market, Cody, Nebraska

Learn More

• Learn more about the Innovative Rural Business Models in the video library at SaveYour.Town.
• The Tionesta Market Village is a terrific example of using the Innovative Rural Business Models to nurture many small businesses together in one space, all in a town of 500 people.
• 20 Small Ideas for Small Towns is a short ebook detailing 20 different ways you can make a successful business in a small town. It also covers seven ways to generate your own ideas, so you can dream up the small biz idea that best fits you. (PDF)

Cover photo by SmallBusiness.com: Reds Eats Lobster Shack, Wiscasset Maine

Two of my favorite words are “free” and “learn.” For that reason, at SmallBusiness.com, we are always looking for the best possible ways to learn how to do something new or better without having the spend lots of money in the process. However, I’ve learned also that it’s not always a good idea to cut corners when trying to learn something about running a business: a great instructor or course can be a bargain if you are like a friend of mine who describes mistakes using the metric, “that cost me the equivalent of tuition for a year in an Ivy League college.” Fortunately, these courses are free but they are noted for being excellent ways to fill in the gaps of knowledge you might need to start, run and grow a business.

Starting a Business

My Own Business Institute (MOBI), Santa Clara University

(Note: The My Own Business Institute (MOBI) was created at the Center for Entrepreneurship and Innovation at the Leavey School of Business at Santa Clara University. Funded with a $17.5 million endowment, its mission is to support the vital social and economic contributions of small businesses worldwide.)

This course is designed for someone who wants to start a business. Compromised of 15 sessions, you can cover the coursework at your own pace and learn the essentials. The content is clearly explained and has an emphasis on learning how to write a business plan. All of the sessions of the course are available for preview.

Session   1: Deciding on a Business
Session   2: The Business Plan
Session   3: Home Based Business
Session   4: Financing the Business
Session   5: Business Organization
Session   6: Licenses and Permits
Session   7: Business Insurance
Session   8: Communication Tools
Session   9: Buying a Business or Franchise
Session 10: Location and Leasing
Session 11: Accounting and Cash Flow
Session 12: E-Commerce
Session 13: Opening and Marketing
Session 14: Managing Employees
Session 15: Expanding and Handling Problems

Business Expansion

My Own Business Institute (MOBI), Santa Clara University

(Note: The My Own Business Institute (MOBI) was created at the Center for Entrepreneurship and Innovation at the Leavey School of Business at Santa Clara University. Funded with a $17.5 million endowment, its mission is to support the vital social and economic contributions of small businesses worldwide.)

This course helps established business owners advance their business to the next level. Comprised of 15 sessions, you can cover the coursework at your own pace. Learn how to strengthen operations, seize opportunities and plan for the future. This course covers appropriate internal controls, expansion opportunities, evaluation methods and exit strategies.

Session   1: Getting Financial Controls in Place
Session   2: Getting Your Team in Place
Session   3: Customer Feedback
Session   4: Achieving Lowest Expenses
Session   5: Develop Negotiating Skills
Session   6: Alternatives for Capital Allocation
Session   7: Advanced E-Commerce
Session   8: Growth By Duplication
Session   9: Vertical Integration
Session 10: Franchising Your Business
Session 11: Global Expansion
Session 12: Buying Businesses
Session 13: Public Ownership
Session 14: Selling Your Business
Session 15: Considerations for Family Succession

Entrepreneurial Marketing

Massachusetts Institute of Technology (MIT)

This free online course is available as part of MIT’s Open Courseware program. Professor Jin Gyo Kim covers basic marketing concepts, methods, and strategic issues relevant for start-up and early-stage entrepreneurs. There are two major questions:

1. Marketing Question: What and how am I selling to whom?
2. New Venture Question: How do I best leverage my limited marketing resources?

Specifically, this course is designed to give students a broad and deep understanding of such topics as:

1. What are major strategic constraints and issues confronted by entrepreneurs today?
2. How can one identify and evaluate marketing opportunities?
3. How do entrepreneurs achieve competitive advantages given limited marketing resources?
4. What major marketing and sales tools are most useful in an entrepreneurial setting?

Because there is no universal marketing solution applicable to all entrepreneurial ventures, this course is designed to help students develop a flexible way of thinking about marketing problems in general.

If you’re considering starting a business, one of the first things you’ll need to do is develop a business plan. However, business plans come in various flavors. There’s the plan you develop to prove to yourself and others that your great idea can actually make money. There’s the plan the bank wants to see if they are going to consider lending you money (even if you provide collateral). And there’s the plan you need if you are seeking outside investors (9.8 out of 10.0 degree of difficulty if this is your first start-up.).

No matter what type of business your plan is for, there are certain parts of a business plan that must be included (or followed), according to business plan expert, Tim Berry, founder of Palo Alto Sofware, author of The Lean Business Plan and creator of LivePlan. Here are his four must-haves:

1 | Projections are not important for their actual numbers as much as for their presentation of drivers, relationships between growth and spending, key spending priorities, sales aspirations, and assumptions related to cash flow.

They have to be solid and integrated, but accuracy is much more a matter of transparent assumptions than accurately predicting the future.

2 | All business plans should include these components.

• Strategy
• Tactics
• Milestones
• Tasks
• Assumptions
• Essential numbers
• Projected sales
• Direct costs
• Expenses
• Cash flow

3 | All business plans should provide the ability to measure accountability and track results.

4 | All business plans should be reviewed and revised at least monthly.

The review should look for assumptions that need to be changed. The review should analyze the projected results vs. actual results. Revisions should be based on the variation between the two.

istock

SmallBusiness.com and the SmallBusiness.com/WIKI are filled with helpful advice about starting a small business. This article provides an overview of issues to consider if you are thinking about starting a business. More importantly, it provides links to articles that go in-depth on such issues. 

Introduction: Start at the Beginning

So you want to start your own business? Congratulations. Right now, you’re probably focused on all of the great things you associate with business ownership:

• Financial independence
• Creative freedom
• Fully using your skills and knowledge
• A balanced life with the ability to have time with your family and frien

Right now, you may not be thinking about:

• Acquiring Customers
• Keeping Customers
• Risk (in various forms)
• Liability (various types)
• Paperwork (lots of it, even when it’s all done digitally)
• Competition (from constantly changing directions)
• Never having enough time
• Never quite knowing what you don’t know

Starting a business isn’t easy. It takes a lot of motivation, discipline, talent, research, planning and good old-fashioned hard work—before you can even hang your “open for business” sign. The topics covered in this overview just scratch the surface. The links you’ll find will take you a little deeper on a topic, but even then, any small business owner will tell you: You don’t always know what you don’t know.

The difference in starting a business and starting a startup

This is an overview of how to start a business, not how to start a startup. There’s a big difference. We once created a funny GIF “listicle” about the difference in starting a startup and starting a business, but the main difference is this: Startups are all about raising funds. Starting a business is all about having customers who pay you more money than it costs for you to provide the goods or services for that payment. Both kinds of companies are important to the economy. But our focus is on starting businesses, not starting startups. (If you need another example of the difference in starting a startup and starting a business, this profile of Jason Fried will help more than the GIFs.)

Before diving into all of the considerations you’ll find below…

You can look far and wide for information on how to start your first business,  but we don’t think you’ll ever find any better advice than this wisdom from Seth Godin:

“Begin with the smallest possible project in which someone will pay you money to solve a problem they know they have. Charge less than it’s worth and more than it costs you. Repeat. You don’t have to wait for perfect or large or revered or amazing.”

Getting started: The self assessment

SmallBusiness.com/WIKI article: Questions to ask yourself and issues to consider before starting a business

In business, there are no guarantees of a perfect ending. There is no way to eliminate all the risks associated with starting a small business. But you can improve your chances of success with good planning, preparation and insight. And that starts by looking at yourself in the mirror and asking yourself a lot of questions. Here are just a few of the questions you’ll need to provide honest answers to.:

• Do you have what it takes to succeed?
• Do you possess the traits of a successful small business owner?
• Why do you want to start a business?
• What do you want to do?
• Is your idea feasible?
• The rest of the questions (…)

Spend a lot of time on this exercise. When you’re finished, take a look at the list and note any gaps. Lacking some of the traits of a successful small business owner doesn’t mean your business will fail, but it will give you a good idea of your strengths and weaknesses—and any partners, employees or advisers you may need to help you fill the gaps.

There are alternatives to starting a business from scratch

Depending on a wide range of factors, it may not be a good idea for you to start a business. Explore with trusted advisors other options for owning a business without starting one, including:

Buy a franchise

SmallBusiness.com/WIKI article: Buying a franchise

Becoming a franchisee of a successful franchising company can sometimes (but not always) increase the odds a business will succeed. But there are many factors which a potential business owner should consider. There are plenty of reasons, outlined in the SmallBusiness.com Guide to Buying a Franchise, for potential franchisees to beware.

Buy an existing business

SmallBusiness.com/WIKI article: Buying a business

Purchasing a business that is already operating can help a potential business owner succeed. But like acquiring the rights to a franchise, the buyer must beware.

Developing a business plan

SmallBusiness.com/WIKI article: Business plan

Have successful business started without a business plan? Probably. But is it risky? Definitely. No small business expert would recommend starting a business without a business plan. There’s too much at stake—-your money, other people’s money, the livelihood of your family and potential employees. That’s why a business plan is essential to starting a business and—as you’ll learn once you take the plunge into business ownership–running a business.

Parts of a business plan

Every successful business plan should include something about each of the following areas, since these are what make up the essentials of a good business plan:

• Executive Summary
• Market Analysis
• Company Description
• Organization & Management
• Marketing & Sales Management
• Service or Product Line
• Funding Request
• Financials
• Appendix

Once you have completed your business plan, review it with a friend or business associate or a small business counselor from the Service Corps of Retired Executives (SCORE) or a Small Business Development Center (SBDC). The business plan is a flexible document that could and should change as you develop your business idea and then as your new business grows.

Using your business plan

In the startup phase, you’ll use your business plan to guide you through the various phases of your new business, but you’ll also use it to attract investment capital, secure loans and attract strategic business partners. For these external eyes, a business plan shows whether or not a business has the potential to make a profit. It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business.

Choosing a business structure

SmallBusiness.com/WIKI article: Business structure
SmallBusiness.com: Side-by-Side Comparison Chart of Business Structures

Many factors must be considered when choosing the best form of business ownership or structure. The choice you make can have an impact on multiple aspects of your business, including taxes, liability and ownership succession.

There are four primary ways to legally organize a business: a sole proprietorship, a partnership, a limited liability company and a corporation. When organizing a new business, it is important to take time to review the pros and cons of each structure.

Sole proprietorship

SmallBusiness.com/WIKI article: Sole proprietorship

This is considered the easiest and least costly way of starting a business. A sole proprietorship can be formed by finding a location and opening the door for business. The owner operates the business, is personally liable for all business debts, can freely transfer all or part of the business, and can report profit or loss on personal income tax returns.

Partnership

SmallBusiness.com/WIKI article: Partnership

There are several types of partnerships. The two most common types are general partnerships and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons, but a legal partnership agreement drawn up by an attorney is highly recommended. Profit, loss and managerial duties are shared among the partners, and each partner is personally liable for partnership debts. Partnerships do not pay taxes, but must file an informational return; individual partners report their share of profits and losses on their personal return.

Limited liability company

SmallBusiness.com/WIKI article: Limited liability company

A limited liability company (LLC) is a structure that gives its owners limited liability for the entity’s debts and obligations, similar to the status of shareholders in a corporation, and its income and losses are normally passed through to the owners as if it were a partnership. An LLC is a statutory creation. That is, unlike general partnerships which are developed under common law, an LLC is created by filing a document (usually called Articles of Organization) with an officer designated by state law.

Corporation

SmallBusiness.com/WIKI article: Corporation, S corporation, and C corporation

A business may incorporate without an attorney, but legal advice is highly recommended. A corporation is usually the most complex and most expensive way to organize a business. Control depends on stock ownership and is exercised through regular board of directors’ meetings and annual stockholders’ meetings. Records must be kept to document decisions made by the board of directors. Small, closely held corporations can operate more informally, but record-keeping cannot be eliminated entirely. Officers of a corporation can be liable to stockholders for improper actions. Liability is generally limited to stock ownership, except where fraud is involved. You may want to incorporate as a “C” corporation or “S” corporation.

Naming your business

While it seems simple, coming up with a name will probably be one of the most difficult steps of starting your business. There’s a lot riding on that name. For starters, you’ll have to like it and enjoy the way it sounds (you’ll be saying it a lot). At the same time, the name also needs to be unique so you can stand out among the competition, but not so unique that potential customers won’t know what you’re selling. If that’s not enough pressure, you’ll also want to check to see if the URL is available. Actually, checking URL availability might help you in the business name brainstorming process.

However you go about it, spend some time with a thesaurus and an empty sheet of paper and play around with name ideas. Once you have a few you’re happy with, test them out with family and friends. Before ordering letterhead, though, there are a few steps you’ll need to take to ensure that you legally can use the name you selected.

Legal requirements and implications

Before choosing a name, you’ll need to decide which business structure you will use. Naming your business (unless you’re a sole proprietorship or a partnership using your own name) is a formal process, which varies depending on the business structure you choose. For example, many states require a sole proprietor to use their own name for the business name unless they formally file anot1her name as a trade name, or fictitious name.

Similarly, you will need to determine whether your trade name will be the same as the full legal name of your business. Of equal importance is finding out whether your name or a similar name is being used by another business, and if so, what rights they may or may not have to use the name in the area where you do business. Keep in mind that some businesses only file trademarks within their locality, so it’s possible that the same name can be used elsewhere.

Research and registration

SmallBusiness.com article: Patent and trademark offices for all 50 states

Trade names can be registered through state Secretary of State offices, and for wider marketplace protection, through the U.S. Patent and Trademark Office (USPTO Trademark Search). Businesses should first use the USPTO’s online system to search all state and federal trademark registers to see if their proposed name is being used.

Website, domain names

SmallBusiness.com Guide: Guide to Small Business Website Basics

For many businesses that operate on the web, trade names are synonymous with domain names, such as Amazon.com and Yahoo.com. Domain names are not registered through state or local government; rather they can be obtained through numerous online businesses, most of which will allow you to conduct a name search prior to purchase to make sure your chosen name isn’t taken. But choosing and registering a domain name is just part of the online considerations that today are a part of starting any small business.

Funding your business

An integral component of starting a successful business is raising sufficient funds, also called capital. whether from your personal savings, a bank loan, an investor, a credit card or a combination of all four. There are many challenges associated with funding a new business, but like with any important decision, careful planning can help you anticipate any obstacles.

Estimating startup costs

To determine your startup costs, you must identify all the expenses that your business will incur during its startup phase. Some of these expenses will be one-time costs, such as the fee for incorporating your business or price of a sign for your building. Some will be ongoing, such as the cost of utilities, inventory, insurance, etc.

When identifying these costs, decide whether they are essential or optional. A realistic startup budget should include only those things that are necessary to start that business. These essential expenses can then be divided into two separate categories: fixed and variable. Fixed expenses include rent, utilities, administrative costs and insurance costs. These expenses must be paid regardless of sales, and are often referred to as overhead costs. Variable expenses include inventory, shipping and packaging costs, sales commissions, and other costs associated with the direct sale of a product or service. Variable costs fluctuate directly with sales volume.

The most effective way to calculate your startup costs is to use a worksheet that lists all the various categories of costs (both one-time and ongoing) that you will need to estimate prior to starting your business. An alternative to a worksheet is an online startup calculator.

Performing a breakeven analysis

The breakeven point occurs when revenue equals all business costs. Estimating this will help when you determine how much startup funding you’ll need—and for how long. Performing a breakeven analysis will also help you determine if you have a viable business idea.

Weighing your financing options

Raising capital is the most basic of all business activities. You need to spend money to make money, right? But securing the capital necessary to start a business can be a daunting challenge. The good news is, there is funding available for new small business owners from traditional and non-traditional sources.

Self-financing

The primary source of capital for most new businesses comes from savings and other personal resources. While credit cards are often used to finance business needs, there are usually better, less risky options available, even for very small loans

Traditional business financing

Traditional business financing options include loans or lines of credit from a traditional lending institution, such as a bank or credit union. In order to secure traditional business financing, you generally need to prove or provide the following:

Ability and willing to repay the loan: Lenders will check your credit report to see that past payments were made as agreed and on time. Traditional lenders also like to see at least three potential sources of collateral (including projected cash flow).

A sound business idea: Just because you pass the first test doesn’t mean a traditional lender will approve your application. You also have to prove that you have created a sound business idea and that you and your startup team hold the expertise necessary to carry out the idea as outlined in your business plan. Before approaching a lender, ask yourself: Do you have sufficient experience and training to operate a successful business? Any traditional lender will want a solid answer to that question.

Alternative sources of financing

SmallBusiness.com Guide: SmallBusiness.com Guide to Alternative Financing

If you cannot secure financing from traditional lenders, there are other sources of financing:

Social lending (peer-to-peer lending)
Small business grants
Community programs
Angel investing
Equity capital

Protecting your ideas

SmallBusiness.com/WIKI articles:  Copyrights and trademarks and Patent

Intellectual property is important to your small business. It’s your ideas–and their implementation—that have gotten you to the point where you’re starting a business. Whether it’s the business name, the logo for your business cards, a slogan to make you stand out from the competition, or a product or service, you’ll want to protect those ideas. In some instances, businesses may want to apply for trademarks, patents or copyrights to protect a trade secret or to register a name or distinctive logo.

Here are the most common types of intellectual property marks you should be familiar with:

Trademark

A trademark (TM) refers to names or symbols used in any commerce that is subject to regulation by state government or the U.S. Congress. Trademarks and service marks may be registered in a state for a term of ten years. Placing a trademark after your product or service name indicates the company’s intent to protect the mark used by the company related to its products or services.

Similar to the TM mark, the service mark (SM) differs from a trademark in that the mark is used in regards to a service rather than specific products or the packaging or delivery of the service.

Patent

A patent is a set of exclusive rights issued by a government agency declaring someone the inventor of a new product and having the privilege of stopping others from making, using or selling the claimed invention.

To obtain a patent, an application must be made through the U.S. Patent and Trademark Office. Once application is made but before it’s approved, businesses can use “patent pending” language.

Copyright

A copyright is protection for the works of authors, composers, programmers, artists and others who create intellectual property. A copyright prevents illegal copying of written matter, works of art or computer programs.

To obtain a copyright, there is no form to complete or fee to pay. A work must simply have three elements: The © symbol (the word “Copyright” or the abbreviation “Copr.” will substitute), the year of first publication and the name of the author or owner. Copyrights last for the author’s life, plus 70 years.

Complying with government regulations

SmallBusiness.com/WIKI articles:  Directories:U.S. Government small business internet resources

It may be inconceivable to you that your home-based consulting service or handknit sweater business would have to comply with any of the numerous local, state and federal regulations, but in all likelihood it will. Avoid the temptation to ignore regulatory details. Doing so may avert some red tape in the short term, but could be an obstacle as your business grows. Taking the time to research the applicable regulations is as important as knowing your market.

Below is a list of the most common requirements that affect small businesses, but it is by no means exhaustive. Bear in mind that regulations vary by industry. If you’re in the food service business, for example, you will have to deal with the health department. If you use chemical solvents, you will have environmental compliance to meet. Carefully investigate the regulations that affect your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business.

Business Licenses

There are many types of licenses. You need one to operate legally almost everywhere. If the business is located within an incorporated city limits, a license must be obtained from the city; if outside the city limits, then from the county. For more information contact the county or city office in your area or try these state web sites that offer business license information You should also go to the website of your home state and hometown and search for “business license” or “county information” to review local regulations. Certain types of trades and services, ranging from being a barber to brain surgeon, also require state and local licensing. Refer to state and local agencies to review such requirements.

Affordable Care Act

On SmallBusiness.com: Affordable Care Act Tax Information

While businesses with less than 50 employees are not required to provide employees healthcare insurance, many do. If you are one of those companies, then you must adhere to the guidelines of the Affordable Care Act (ACA). If you don’t provide healthcare insurance through a group plan, you are required to purchase healthcare coverage for yourself or pay a penalty (tax) as part of your annual federal taxes.

Certificate of Occupancy

SmallBusiness.com/WIKI articles:  Certificate of occupancy

If you are planning on occupying a new or used building for a new business, you may have to apply for a Certificate of Occupancy from a city or county zoning department. For more information contact the county or city office in your area. You should also go to the website of your home state and hometown and search for “certificate of occupancy” or “county information”.

Fictitious Business Name

Businesses that use a name other than the owner’s must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information contact your state or local government. You should also go to the website of your home state and hometown and search for “trade name registration” or “county information”.

Immigration Act

The Federal Immigration Reform and Control Act of 1986 requires all employers to verify the employment eligibility of new employees. The law obligates an employer to process Employment Eligibility Verification Form I-9. The Immigration and Naturalization Service Office of Business Liaison offers a selection of information bulletins and live assistance for this process through the Employer Hotline. In addition, INS forms and the Employer Handbook can be obtained by calling the Forms Hotline. For Forms: (800) 870-3676, Employer Hotline: (800) 357-2099

Health and Safety

The Federal Occupational Safety and Health Administration (OSHA) outlines specific health and safety standards employers must provide for the protection of employees. Many states have similar standards.

Workers’ Compensation

If a business employs three or more people, workers’ compensation insurance must be carried to provide protection to those injured in on-the-job accidents. The State Board of Workers’ Compensation aids people who need claim assistance. For more information contact your state government small business agency.

Minimum Wage — Virtually all business entities are subject to the federal minimum wage, overtime and child labor laws. Information on these laws and other federal laws, may be obtained from: U.S. Department of Labor, Wage and Hour Division

Understanding taxes

SmallBusiness.com Guide: Small Business Guide to Taxes

Business owners are required by law to withhold the following from the wages paid to employees: federal income taxes, state income taxes and FICA Social Security insurance.

Income taxes will also be levied by the federal and state governments on earnings of any business. Therefore, each business must file an income tax return with both agencies. Businesses may be required to file estimated tax returns and pay estimated taxes on a quarterly basis.

You can go to IRS’s website area for business taxes or call your local IRS office to receive a number of publications that are available upon request to small businesses. One of the most helpful is Your Business Tax Kit, which includes data and forms for a Federal Employer Identification Number and a tax guide for small businesses that can be ordered by calling Forms and Publications at (800) 829-3676 or through a visit to your local IRS office.

You may want to contact your local Social Security Administration office for (FICA) insurance information or visit the SSA Employers’ Information web site.

Employer identification number

SmallBusiness.com/WIKI articles:  Employer identification number

To pay federal taxes, withhold Social Security contributions for employees and for other reasons, a business needs an Employer Identification number.

Federal self-employment tax

Everyone must pay Social Security tax. If you are self-employed, your Social Security contribution is made through the self-employment tax. You will need to calculate how best to report earnings and pay your business taxes. Contact the IRS at (800) 829-1040, visit your local IRS office, or go to the Official IRS Web site for more information. The IRS may seem like a complicated maze, but there are publications, counselors and workshops available to help you sort it out.

Sales tax and sales tax number

In your state there is a percent sales and use tax which applies to the retail purchase, retail site, rental, storage, use or consumption of tangible personal property and certain services. In other words, sales tax must be collected on just about every tangible item sold.

A sales tax number is required for each business before opening. The number, plus instructions for collection, reporting and remitting the money to the state on a monthly basis, can be obtained from your state government.

Unemployment insurance tax

Businesses are required by the state to pay unemployment insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it has paid gross wages of $1,500 or more in a calendar year. Go to your state home page to check the figures for your state. Unemployment insurance must be reported and returns made to the state.

Getting business insurance

Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. Contact your insurance agent or broker. It is prudent for any business to purchase a number of basic types of insurance. Some types of coverage are required by law, other simply make good business sense. The types of insurance listed below are among the most commonly used and are merely a starting point for evaluating the needs of your business.

Liability insurance
Property insurance
Business Interruption
Key Man
Automobile
Office and Director

Choosing a location

Choosing the right location for your business can be a major factor in its success or failure. A good location may allow a struggling business to survive, but a weak location could mean trouble for even a very well-run business. Or maybe you don’t need a location just yet—maybe a home office would suffice for now.

Whatever location you choose, make sure you know all of the legal restrictions on your place of business, including:

• Home-based business regulations
• Commercial leasing
• Zoning requirements

See also on the SmallBusiness.com/WIKI

• Category:Starting a business
• SCORE – Volunteer organization of retired executives who counsel and assist small business owners.
• Small Business Development Center – A program of the SBA that assists small business owners and startups.
• Directories:U.S._Government_small_business_internet_resources – Directory of online government resources for small business owners
• IRS business tax resources

Other resources on the web

• SBA.gov Small Business Planner – This entry includes information from this helpful SBA guide.
• Guide to Starting, Operating and Closing a Business – IRS.gov – Information on business formation from the U.S. Internal Revenue Service.
• Service Corps of Retired Executives (SCORE) – SBA-backed volunteer group of retired business executives provides free assistance to help start and run small businesses.
• Business Start-up Organiser (UK govt. site) – UK small business start up information
• Your Business, Business Owner’s Toolkit, toolkit.com
• Estimating Startup Costs, SBA.gov
• Will My Business Make Money? Nolo.com

Photos: ThinkStock

When it comes to funding a new small business, there are two clichéd versions of founding myths. One version has the business owner burning through multiple mortgages and credit cards. The other founding myth has a tech guru raising millions of dollars from a group of venture capitalists. Neither sounds typical to us so we turned to Steve King, Emergent Research partner and a regular contributor to SmallBusiness.com to provide the accurate funding story for most small businesses.

Amount spent to start or acquire a small business that currently has 500 or fewer employees

Below are the percentages of small businesses with 500 or fewer employees listed by the amount spent to start or acquire the business. This is based on data from the U.S. Census 2014 Survey of Entrepreneurs.

Amount spent to start or acquire a small business that currently has 50 or fewer employees

The chart above pertains to small businesses with fewer than 500 employees. For a 2014 report by Emergent Research, we used data related to small businesses that had fewer than 50 employees. With that criteria, the businesses reported spending less than $5,000 to start their business.

Bottom Line

The vast majority of businesses in the U.S. are small by any measure: from the one person small business to the 500 employee corporation. It’s hard to attribute success to one factor like how much money it took to get the ball rolling.

The internet, cloud computing and the general cost declines associated with technology have made it much cheaper and easier to start a business than in the past. I believe these trends will continue, allowing more people to become business owners and entrepreneurs.

A version of this article also appeared in Small Business Labs.