A small business is a privately owned and operated company that has fewer employees or less revenue than larger businesses. Whether you’re an accountant, resume writer or artisanal baker, operating your own business can be rewarding but can also bring its own unique challenges. In addition to ensuring your product or service is high-quality, you’ll need to be able to manage time and resources to keep your business running smoothly. It’s important to avoid overspending, which is one of the main reasons many new small businesses fail.
To qualify as a small business, companies must meet certain size standards set by the U.S. Small Business Administration and System for Award Management (SAM). These thresholds vary by industry and are used to determine eligibility for SBA business loans and contract work with the federal government. Generally, companies with less than 500 employees are considered small businesses.
In contrast to large companies, which may be constrained by the bureaucracy of their own structure or a desire to please shareholders, small businesses are often nimble and can react quickly to changes in customer demand. This flexibility can be a huge advantage for small businesses.
However, it can also be challenging for small businesses to find enough time to devote to marketing their products and services. This can lead to low sales, which is a top reason for small business failure. To help alleviate some of this stress, it’s helpful for small businesses to have a strategy for market expansion that works with their own capabilities, whether through social media campaigns or other avenues.