What is a good small business to start up

what is a good small business to start up

‘I Can’t Keep Doing This:’ Small-Business Owners Are Giving Up

No matter what kind of business you intend on owning, it is a good idea to estimate your business startup expenses prior to jumping in. Whether you plan on starting a small business or a larger franchise, you may be surprised at the total start up cost. Jul 13,  · Whatever the specific reasons may be for each closure, Justin Norman, Yelp’s vice president of data science, said that the federal government should offer small .

On the last Friday of June, after Gov. Greg Abbott of Texas said that bars across the state would have to shut down a second time because coronavirus cases were skyrocketing, Mick Larkin decided he had had enough. No matter that Mr. No matter that the frozen margarita machine was full, that plastic syringes with booze-infused Jell-O were in place, or that there were masks for staff members and hand sanitizer for guests.

That day, June 26, Mr. Larkin and his partner dumped what they had just bought into the trash and decided to close their club, Krank It Karaoke, for good. Larkin said. It was harrowing enough for small businesses what is a good small business to start up the bars, dental care practices, small law firms, day care centers and other storefronts that dot the streets and corners of every American town and city — to have to shut down after state officials imposed lockdowns in March to contain the pandemic.

But the resurgence of the virusespecially in states such as Texas, Florida and California that had begun to reopen, has introduced a far darker reality for many small businesses: Their temporary closures might become permanent.

Nearly 66, businesses have folded since March 1, according to data from Yelp, which provides a platform for local businesses to advertise their services and has been tracking announcements of closings posted on its site.

From June 15 to June 29, the most recent period for which data is available, businesses were closing permanently at a higher rate than in the previous three months, Yelp found. During the same period, how much does shutterstock pay contributors closures increased by 3 percent overall, accounting for roughly 14 percent of total closures since March.

Researchers at Harvard believe the rates of business closures are likely to be even higher. They estimated that nearlysmall businesses across the country had decided to shut down permanently between early March and early May, based on data collected in weekly surveys by Alignable, a social media network for small-business owners.

Christopher Stanton, an associate professor at Harvard Business School who was one of the researchers, said it was difficult to accurately gauge how many small businesses were closing because, once they shut their doors for good, the owners were hard to reach. He added that it could take up to a year before government officials knew the true toll the pandemic was taking on small businesses.

At the moment, 39 states continue to record growing numbers of new cases daily. But the company found that, among the tracked businesses — which include restaurants, retailers and other independent, consumer-facing operations — retail businesses, led by beauty supply stores, have been closing at the highest rate since the pandemic began.

Restaurants are the next hardest-hit group. Small businesses account for 44 percent of all U. So when small businesses close en masse, an entire sector of the economy suffers, Mr.

Khanna said. There is lower cash flow, higher debt and more unemployment. Because small businesses depend heavily on foot traffic and operate on thin margins, they are especially vulnerable to the ripple effects of a widespread shutdown.

For nearly two decades, Rich Tokheim and his wife sold sports memorabilia — hats, T-shirts, coffee mugs and other trinkets — to fans in Omaha at their store, The Dugout. The World Series was canceled in March. In the weeks that came after, other sporting events were scrapped — starting with college sports and extending to professional leagues that have struggled to relaunch their activities. Tokheim, 58, watched his business fall off with growing unease, but it was only after a friendly chat with a retired college athletic director in May that the gravity of his situation hit home.

He was already worried about the state of the virus in Nebraska, and whether there was enough tracking. Then the athletic director predicted that if college football was canceled for the year, it would be the end of Division I sports as a whole. Tokheim said. He negotiated an early exit on his store lease and announced a clearance sale at the store. The Dugout closed for good on June Even for those who took a P. Nick Muscari, a year-old restaurateur in Lubbock, Texas, received one.

Three years ago, he bought out the two partners who helped him start the restaurant in He considered it a crowning achievement, but to do so, he had to borrow money.

Muscari tried to ride out the spring lockdown that temporarily shuttered his restaurant with the help of the P. Muscari said. We never had anybody catch the virus in our establishment. Muscari, with the business closed and its 30 employees jobless, has nothing left but his house and his car.

Many small businesses are also finding it onerous keep up with constantly changing local guidelines, while others are deciding that no matter what their local officials say, it just is not safe to keep going. Gabriel Gordon, the owner of a tiny but popular barbecue restaurant in Seal Beach, Calif. He had determined that the kitchen would never be safe for multiple staff members to occupy at once while the virus was still active in the area.

Gordon said, describing the shape of the restaurant, Beachwood BBQ. Norman said Yelp was concerned about the effects of small-business closures, especially how to download photos from camera to mac owned by people of color, on society.

Yelp, however, also has a financial interest in maintaining a robust small-business environment, because it relies heavily on advertising by businesses on its platform.

Norman said. Updated April 17,p. Home Page World Coronavirus U.

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No matter what kind of business you intend on owning, it is a good idea to estimate your business startup expenses prior to jumping in. Whether you plan on starting a small business or a larger franchise, you may be surprised at the total start up cost. Nearly all new business owners underestimate the cost of starting their business, leaving it exposed to the risks of being underfunded. To help you avoid this common mistake, use our Free Business Start Up Costs Template to help you determine how much money you need to get your start up business up and running safely.

See below for additional information, tips and resources. Calculating business start up costs should be a part of starting any business. An entrepreneur is usually required to put these costs together as part of a business plan , loan or grant application. They are also helpful when putting together proforma financial statements. License : Private Use not for distribution or resale. This Excel workbook will help you put together an estimate of costs and funding required to start your business.

It is pre-populated with expense categories common to many small businesses and home-based businesses, so it can be very useful in helping you identify all of your start up costs, including many you may not have considered. As you add your own costs or expense categories, the template will help you understand whether you have adequate funding. Once you have your funding secured and you pull the trigger, use the worksheet to track your actual expenditures to help you keep your costs under control.

As you get your business going, you may want to consider using a more detailed business budget and other financial statements. Starting a restaurant? This free template also includes a customized start up cost sheet with many cost categories specific to owning and operating a restaurant.

Perfect for helping you capture all of those Restaurant Start up Costs. Starting a franchise, web business or home business? Continue reading below for some help with costs specific to these types of businesses as well as links to other helpful resources. Starting a restaurant can be expensive because of the specialized equipment and facilities that are required. Luckily, there are usually leasing options available for the expensive items and many landlords will work with you on leasehold improvements.

Use the Restaurant specific worksheet in the Business Start up Cost Template to help you consider other expenses such as cleaning costs, uniforms, menu development and supplier sourcing costs.

The nice thing about a home based business is that you can forgo many of the typical expenses of a startup. Things like internet, office space, furniture and utilities are already taken care of. Better yet, if you qualify for the home office deduction, now you can write some of these items off as business expenses.

If you are starting a home-based internet business , continue on to the next section. A web based business may be one of the least expensive businesses to start, especially if you can do the web development work yourself.

Use the basic template and decide which expenses apply to you — simply delete the rest. You may also want to consider some items not listed, such as custom web page design and development work, custom database development and scripting, search engine optimization SEO and advanced hosting services to name a few. Also, if your business is retail, don't forget to include all of the referral and usage fees for selling through storefronts like Amazon and Ebay.

Our Business Start up Cost Template will also help you if you are looking for a start up franchise opportunity or looking for franchises for sale.

Along with all of the regular costs of starting a business, the template also includes categories for fixed franchise fees as well as monthly franchise dues and marketing co-op fees. You may also want to check with the franchise corporate offices. Many of them provide tools to help you estimate your start up and operating costs.

The key to putting together accurate numbers is to get into the details. This requires doing detailed research by calling suppliers and providers, searching the internet and listing any and all costs that may be applicable. To help you, the business cost template comes pre-populated with many of the most common expense categories. It also contains additional suggestions and tips for each category to help you make sure you considered everything.

Feel free to add additional line items that are unique to your business. Start by listing the sources of funding that you believe will be available to you in the Estimated column. This would include money supplied by owners and investors, funds available from bank loans or other lines of credit. In some cases you may be pursuing other sources of funds such as grants, endowments or sale of assets.

After all your funding sources have been outlined, start putting in the estimated fixed costs. These costs are one-time costs associated with getting your business up and running. This includes things like leasing space, purchasing assets, stocking up on inventory and getting your legal and marketing issues in order.

Two key parts to the fixed costs are the Working Capital and a Reserve for Contingencies — these can be significant. Any startup is advised to have a Contingency Fund as there are always last minute surprise costs and fees. Consider the risks of your business and set aside sufficient funds accordingly. Be sure to include enough Working Capital to fund your normal business operations as you grow. Remember that there can be a significant amount of time between when a sale is made and when you actually receive payment.

Sufficient working capital is needed to allow you to continue to purchase inventory and pay bills while waiting for payment. More than one growing business has failed because it lacked sufficient working capital. Many entrepreneurs fail to understand that businesses are seldom profitable the first day. In order to have a clear picture of actual cash required, it is important to estimate your monthly operating costs as well as how many months it will take you to move from the red to the black.

The template is setup to assist you in determining these important costs. Simply identify how many months you believe it will take to get up and running and fill in the estimated monthly costs. As a time window is provided and all the sources and costs are identified, the spreadsheet will calculate whether you have a surplus or deficit in funding.

If you have a deficit, then you will need to figure out if there are ways to scale back your costs or look for additional funding. If you have surplus and are confident in your numbers, you may be good to go.

The excitement of starting the business can cause entrepreneurs to spend more than they planned. Use the template to keep you grounded.

As you collect funds and begin to spend money, record the Actual amounts next to the Estimated numbers. The spreadsheet will calculate whether you are running over or under you estimated numbers so you can make adjustments as you go.

Below are a number of great references that can help provide you with more information and direction on starting your own business. Excel Restaurant Business Start Up Costs Starting a restaurant can be expensive because of the specialized equipment and facilities that are required.

Home Business Startup Costs The nice thing about a home based business is that you can forgo many of the typical expenses of a startup. Internet Business Startup Costs A web based business may be one of the least expensive businesses to start, especially if you can do the web development work yourself. Franchise Business Start Up Costs Our Business Start up Cost Template will also help you if you are looking for a start up franchise opportunity or looking for franchises for sale.

Funding Sources Start by listing the sources of funding that you believe will be available to you in the Estimated column. Fixed Costs After all your funding sources have been outlined, start putting in the estimated fixed costs. Monthly Costs - Until Profitable Many entrepreneurs fail to understand that businesses are seldom profitable the first day. Ready, Set, Go As a time window is provided and all the sources and costs are identified, the spreadsheet will calculate whether you have a surplus or deficit in funding.

Keeping Things in Check The excitement of starting the business can cause entrepreneurs to spend more than they planned. References and Resources Below are a number of great references that can help provide you with more information and direction on starting your own business. Official Site of U. Grants - Official site for finding and applying for U. Grants including Business Startup Grants.

Starting a Business at entrepreneur. Government on the 10 steps for starting a business. Writing a Business Plan at sba. Business Plan Software at paloalto. Will guide you through the process and has hundreds of industry specific examples. Minority Business Development Agency at mbda.

Small Business and the FDA at fda. Federal Business Opportunities at fbo. Can even use it to come up with Business Startup Ideas. Information for Entrepreneurs at startupnation.

Disclaimer : This spreadsheet and the information on this page is for illustrative and educational purposes only. We do not guarantee the results or the applicability to your unique situation or business plan. You should seek the advice of qualified professionals. Follow Us On Business Plan Template. Break Even Analysis Calculator. Loan Calculator. SWOT Template. Sales Forecast Template. Project Task List Template. Sponsored Listings.

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