There are many different ways you can make money online for your small business. You may want to consider affiliate marketing, blogging, or online selling products. With all these options available, how do you know what will be the best option for you? Here are some ideas on how to choose the best small business opportunity.
The median annual income in the United States in February 2021 was about $56,200 for the lowest 50% of earners. But the top 10% earned more than $ 94,000. About 4.3 million individuals work in the United States alone as small businesses owners. That gives you a very good size definition of how to start a small business in the United States.
So now that you have the definition, how do you go about finding the proper opportunities for you? You need to determine whether you want to sell products or services on the Internet. Some small businesses also offer Web based applications such as e-commerce stores or web portals that customers can use to shop online from their homes. You can sell either one or both.
Most businesses that are on the Internet will have an on-line sales page. Here’s a tip: As a small business owner, do not assume that everyone who shops on the Internet is going to be able to order from your on-line sales page. That’s just not how it works. But if you have an on-line sales page, then you have a way of reaching those potential customers. The average annual receipts for on-line small businesses are about three times higher than brick and mortar businesses.
So now we come to our next tip. The size definition used by the Small Business Administration doesn’t include many of the numbers that the government uses in its analysis. For example, the SBA looks only at the revenue generated by companies with fewer than one hundred employees. It doesn’t include revenue from businesses where one or more employees work more than a hundred employees.
In fact, most of the statistics used by the SBA come from the surveys conducted by surveyors hired by the agency. That’s why the small business owner needs to have a professional service to conduct an on-site or off-site survey. A good quality management system will allow the owner to enter accurate employee numbers so that he can plug those into the statistical tables the SBA presents. Then he can look for trends.
The third most important number that the SBA uses to analyze small business owners is the number of cars. The average CEO is now probably closer to one hundred and thirty-five. Most of the time, what you see in an annual report on CEO compensation is the CEO’s compensation package, not an understanding of how the company is run or how to measure related compensation properly.
To help with these issues of compensation and oversight, most new small businesses are going to hire a CFO to be the company’s “chief financial officer”. You can expect this person to understand all the small business size standards and how to use them to make compensation decisions. But he or she won’t be expected to develop the CFO model or handle the entire compensation program. This is a great opportunity for you if you have the right skill set. If you aren’t as proficient as a CFO, a payroll consulting firm that specializes in helping small businesses develop and implement the best compensation practices can be just the thing for you.
So back to the original question: What do you do if you don’t have 1,500 employees? Many small businesses fall into the “not applicable” category, because their owner can’t figure out how to develop a model and implement it. This is a mistake that often makes small businesses “unemployable” when they are offered a large payroll increase. While this is frustrating, don’t make it so bad that you can’t provide good service. Remember, most small businesses are first and foremost customer based.
If you are a small business owner who doesn’t understand how to evaluate compensation and oversight, the answer could be outsourcing to a payroll management and consulting firm. These are organizations that understand the needs of small businesses and can help them develop systems to get organized. In addition, they will help with overall compensation and oversight. The goal of these types of firms is to develop systems that make things simple for the employer (you). In return, you’ll save money on payroll taxes, get quality supervision of your employees, and have a system set up to get more work done in the same amount of time.
So don’t let “not qualifying” be a barrier to growing your small business. Make sure that you’re doing everything in your power to be a success. If you’re not, consider a management consulting firm or payroll outsourcing company. You’ll soon see the benefits.