The digital age ushered in a new era of opportunity, as more new businesses than ever are sprouting up around the nation. The number of Baby Boomers who started a business since 1996 has grown from 14.3% to 23.4% and counting as of 2013. The 28 million small businesses around the country are responsible for 54% of U.S. sales and 55% of American jobs. Running a business is by no means easy, but with a little bit of budgeting and some small business working capital loans from the bank, anyone can start up their own business with a dream and some determination.
The largest expense for most small businesses are employee wages, which can take up around 19.4% of a business’ budget. Inventory and rent are the second and third largest expenses respectively, with inventory taking up to 7.7% of the budget and rent consuming 4.6% of a company’s budget on average. In 2014, over half of small businesses spent money by either replacing old equipment or maintaining current IT infrastructure. Businesses must also consider marketing techniques, as 44.6% of small businesses plan on investing money into new customer acquisition methods and techniques.
Working Capital Loans
Very rarely will a company emerge without the assistance of small business loans. In order to help upcoming businesses, the United States Small Business Administration offers a “Loans and Grants Search Tool” that allows new businesses to find ideal working capital loans for small businesses. These working capital loans can help cover the expenses of running a small business, but be forewarned that banks will typically penalize those who try paying their loans back early, as banks want to receive 100% of the anticipated interest from that loan. Borrowing loans is a great way for business owners to build credit, your bank or credit union reports the loan to all three credit bureaus: Equifax, Experian, and Transunion. If you too are trying to get your small business off of the ground, then consider working capital loans to help get your business launched.