The more than 33 million small businesses in America are the backbone of our economy and account for 99.9% of all businesses in the country, according to the Small Business Administration’s Office of Advocacy. But they can be vulnerable to market pressures and need the right tools, resources and advice to thrive. From important definitions to expert growth tips, we’ve rounded up everything you need to know about small business.
A small business is any for-profit company that has fewer than 500 employees and generates lower revenue than large corporations. They can be structured as a sole proprietorship, partnership, LLC or corporation and may register themselves as such to take advantage of government programs and tax benefits.
Small business owners often have less bureaucracy and more autonomy than their larger corporate counterparts, giving them a sense of personal ownership of the success of their business. They also stand to profit more directly from the business’s success, and suffer financially if it fails, and often put their life savings into the venture.
Aside from a need for capital, one of the biggest challenges for a small business is staying in control of expenses. This is especially true in the early stages of a new company, when it can be easy to overspend on things like marketing, equipment and supplies. To help prevent this, it’s crucial to have access to accurate financial data that can be used to predict future trends and profitability. With Lightspeed’s built-in reports and Advanced Reporting, you can get a clear picture of how your business is performing at any given moment.