NASHVILLE, Tenn. (WTVF) — During this “Great Resignation” period of the pandemic, it’s one thing to just change jobs, much less launch your own business. However, many entrepreneurial experts say companies like Apple, Oracle, and Microsoft all started during an economic down-cycle.
As a matter of fact, according to the U.S. Census Bureau, nearly five million new businesses were launched in the U.S. during 2020, which is the highest total on record. That trend continued in 2021, but starting a business isn’t easy. What are the pros and cons of creating a business, and what’s it take to get started?
Kathryn Petralia, the founder of “Kabbage,” a small-business automated lending platform, says first and foremost, finances are paramount.
“Make sure that you have sufficient capital to get through periods of time before you start generating revenue, understand when that might happen and build a plan,” Petralia advises. “Make sure that you understand what kind of financial tools that you need in order to achieve your goals.”
And number one, Petralia advises keeping your personal and your business finances separate. The first thing you should do is op a business checking account.
“Make sure you’re tracking your expenses, make sure you’re tracking your revenue and keeping it separate and keeping it organized,” she said.
Also, having the support of your spouse, family and friends can be critical. Data from the Bureau of Labor Statistics shows about 20% of small businesses fail within the first year. That’s why Petralia recommends being prepared by talking to others who’ve been successful at launching their own business, and make sure there is a true need for your product or service.