For many, turning a hobby or passion into a full-time gig is the epitome of the American dream. You’re going at it alone, you’re the captain of your ship, the creator of your own destiny – there’s a lot to gain by starting your
own business. Unfortunately, if you’re not careful, there’s a lot you can easily lose too. So what should you know?
Only about 20% of small businesses survive past their first year of operation.
Why is that? Usually it’s due to lack of funding or profits. Entrepreneurs also tend to be less risk averse and more inclined to find an adventure into the unknown to be exciting. These traits can make for a creative business product, but the traits can also mean that owners fail to realize when they’re in over their heads.
The good news? After several years of business, the probability of survival tends to even out.
You probably won’t make a profit for several years.
Between salaries, loan payments and operating costs – it could be a while before you see any extra cash, assuming you make it past year one. In fact, it took Amazon nine years after being founded to turn a profit.
Where you are matters.
Near the top? Texas and Idaho. (Check out the full
list here.) What factors can make a difference? The cost of living, tax codes, rebates, hiring rules, minimum wage, and many more of your particular state’s rules or laws can have an impact on your ability to succeed.
We’re here to help!
Whether you’re thinking of starting your own business, or already have a logo picked out – our local small business bankers can help with banking solutions. Find your local WaFd Bank branch to learn more or open a business bank account online today.