For example, if you run a candy store, Selling special confetti gifts and candies for special events and occasions. If you have too many products, then it would be a waste of money due to fewer sales. What happens if you sell a few products? If you have fewer products than if there is an order for many confetti and candies. It results in you missing an opportunity to have a large sale. So, how can you find a balanced product for sales?
Many businesses, especially those small businesses, need to have the right measures. Starting a small business is very hard work. They also need to manage many different tasks. Due to this each year, just one out of every ten small businesses succeed. What type of tasks? As making business plans, and finding the right places. With that getting money and turning possible buyers into real sales.
Whether you run an online store or a business that is in real life, you need to know about the different things happening and the right measures to be taken. Does it affect your business? Knowing what’s happening around your business and predicting the future. This can have a positive effect and less negative effect.
Suppose you’re thinking of running a business or already in the mix of it. You need to be prepared for the 2024 business environment to survive and succeed. These are called business statistics, which gives an idea to be prepared for. But you might be asking what is business statistics? This blog will help you understand business statistics and frequently asked questions. With that, help your business for 2024.
What Are Business Statistics?
Business statistics are the tools. That is used to find data and applications associated with your business. Can it help you? Every type of business wants a prediction and data for analysis. That can lead to helping you prepare for the future. Business statistics make it possible for your business to face future challenges.
Ways Business Statistic Data Is Collected:
You might be wondering, how are data collected for business statistics? There are many ways to collect business statistics data. But here are the two common ways to do it.
- Survey: Surveying the people asking for reviews or when you’re in a restaurant. They often ask if there is something different you want us to add to the menu. And so on.
- Past data: Your businesses or competitors’ businesses’ past data. That can be provided by your local government agencies.
Why are Business Statistics Important?
But is it important for your small business? Small businesses face a lot of challenges. You might be facing the challenges as well. Or maybe you are planning to start a business. So, the means of taking the right measures and prediction is important. And that’s where business statistics is important due to the following reasons.
To track and understand the market and your business position. It’s important to have data that can tell you about your business position, which makes you understand your customer mindset, and so on. Business statistics collect and organize these types of data. That can help you in getting good opportunities for your business performance.
How can it help you in understanding your customer behavior? Business statistics helps in understanding your customer’s behavior through their data. For example, data about their online negative reaction to your competitor’s product. This can help you predict and be prepared to counter the issues. That the customers of your competitors face and attract them toward your product.
Business statistics can help you find out the trends. Including your industry and your business itself. For example, if your business records lower profit during some period in a year. You can cut down costs like having fewer stocks when sales are less. How can the trend be shown by business statistics data? With the data, you can find the trend of when you earned profit. Plus, often data of when the market’s overall sales skyrocketed. Using data from your past sales and competitors’ data.
Business Statistics and Their Effects:
Business statistic data not only helps in understanding the position of our business, but also helps in overcoming the current issues and future possibilities as well. The conduct of research can play a crucial role in decision-making. For example, you run a grocery store. The data at the end of the day helps you in finding out how many customers came into the store. Also, shows how many people bought, which product needs to be restocked, and so on.
Does it help businesses in saving time and resources? Yes, it does, for example, when you want to restock your inventory. The data help you find the products that require restocking. This saves time by not checking the inventory one by one manually.
If your small business functions both online and in real life. The data of both types of sales. It will help you determine which one is performing well. If for example, your online sales are higher as compared to the retail store sales. This data can help you decide. Going full online can benefit your business and can cut a bit of costs as well like rent costs.
How Many Small Business Operates In the United States Of America:
The report by Adovacy Small Business Administration of 2023 states that. Which is around 33,185,550 small businesses are operating in the United States. How many jobs did they create? The small businesses have employed around 61.7 million Americans. This means that small businesses created a net job of 17.3 million. The net jobs data was from the total from 1995 to 2021.
What does the data overall mean? This indicates how important small businesses are for the US economy. With the right statistics and measures, your businesses can prosper. Also, survive if your market is competitive and changing over time.
8 Small Business Statistics For 2024:
The ten small business statistics that will help you set off for 2024. You might be wondering. What could they be? This blog will help explain each one in detail.
1. Common Reasons Behind Starting A Business:
The most common reason behind starting your own business. That is, most people wanted to feel like their own boss. They wanted to feel like there was no one above them. Making them do their own thing and so on. The biggest motive was to follow the dream of starting your own business. It feels like you are only running the business.
What is the second main reason for starting your own business? It is that you may be unhappy with working at big companies. 17% of the people who were asked about it chose this as their top reason. Popular reasons for doing something can be following personal wants. Also, finding a good chance in the future, getting inspired, and not being ready to stop working.
Starting your own business gives you the feeling of freedom. The freedom that you did not have when working for a corporate office. The feeling of being your boss and the boss of your own time. It gives you the feeling of finding your true self by making decisions by yourself. Not anyone else deciding for you. This gives you the freedom to work how you want to and the way you want to. Not following anyone else instructions.
But surely there can’t be just freedom reasons? People all over the world choose to aim for money and freedom. There are lots of reasons why you can do this. That’s important and helps you gain control. It also makes decisions about your life situations daily without you having financial worries. There is a cloud hanging around your head that could slow down your progress big time! It’ll bring more peace when it comes to your future planning things. So you can keep steady makes those better chances. But, the main reasons usually involve wanting to get away from their current jobs by having more freedom in how they do business.
2. Covid-19 Pandemic Business Statetic:
The COVID-19 pandemic affected almost everyone and everything, including small businesses. Many in your country and cities might have their small businesses shut down. Due to the lockdown and the pandemic. Which affected many economies and caused a crisis. For example, many Asian countries like India. They had to deal with the outbreak and the economic crisis as well.
How much did it affect the US? In 2020, about 31% of small businesses in the US were not working. In March 2020, the US turned into a red zone for the virus.
How many businesses got closed down? This caused about three-fifths of small businesses to close down. Because the country was locked up to stop the virus spread 60% of the businesses close down. The data collected by the government. Similar cases might have occurred in your country as well.
Did some change tactics? To survive the pandemic, many small businesses changed their focus to online. To gather their customers online and sell their products and services. Making sure their businesses survive. Which led them to survive even in a pandemic. This tells you that having an online store. Also, having a real-life store can increase the chances of survival. Even if the next pandemic occurs in the future.
3. Age Statistic Data:
If you are young and want to start your own business, you are not alone. Many reports tell us that there are baby boomers and Genz who start their businesses. You can start your small business while being in the home just like many young entrepreneurs did. While staying in their homes. They started their businesses online by creating their websites. This is because many find it easy and flexible to just start an online marketplace. You can save a lot of cost as compared to starting a local business. You don’t have to pay rent, wages, and so on.
4. Social Media Statistic:
Social media has become an important role when it comes to running a small business. How can it affect small businesses? You might ask. If you are deciding to open a small business, the statistic data. This suggests that around 54% of small businesses use social media. To promote their business.
Advertising your small business and other things can be cost-effective. If you want more engagement for awareness of your small business brand. Posting funny content and relatable content will get you more followers and engagement. Because the data by the same statistic data report suggest that. The highest content get often gets engaged is funny posts with 48% engagement. With relatable posts taking second place around 42% of engagement.
Trending content and interactive content have engagement of 23% and 21%, respectively.
5. Financial Business Statistics:
What if your financial skills aren’t strong enough? If your financial calculations aren’t that strong, you are not alone. Around 41% of financial reporting human errors are made. The majority of the errors are because of accounting. This is often a common occurrence. However, mismanagement of financial things often can negatively affect a business. But you can use software applications which can reduce the error and give you relaxation.
The average tax paid by small businesses is 19.8%, as estimated by Govinfo. But sometimes small businesses fall behind due to them not being able to pay tax. Increasing their tax liability.
You might be thinking of getting a loan. The statistics by Forbes indicate that in 2019, 43% of small businesses applied for loans. How many changed in the next two years? Whereas, in 2020 and 2021 the small businesses that applied for loans. Those dropped to 37% and 34% respectively. Why should you apply for your small business?
The reason you should apply for a small business is that. 24% of small business owners use loans to purchase inventory. At the same time, payroll expenses are paid by 21.8% by the loan of small owners. Reported by the same Forbes report.
6. Demographic Statistics:
While the majority of the owners are white and male. However, due to the progress in diversity and change. The statistics are changing. If you are a different gender than males, these statistics will help you. The woman owns the majority of more than 5 million firms in the United States.
Also, a report by BusinessWire, states that over 80% of small businesses. Makes their focus on creating a DE&I their priority. Which can be beneficial for you if you were planning on creating one for your business.
Suppose you want to run a business with your spouse or partner. The data from Bank Of America suggests that over 50% of small businesses. That are run, operated, or owned by spouses or partners.
Suppose you’re a veteran who has served your country but is looking for statistics. A report by ScoreOrg about veterans. That states around 9% of small businesses will be started by veterans in the year 2021.
Suppose you are a minority and want to start or run a small business. The report by USCensus Beuru reported in 2020. That about 1.2 million businesses were minority-owned.
7. Statistics of Success Rate:
You might have a fear of your small business not succeeding the way it should. The main reason people often don’t start their own business is the fear of not succeeding. However, a study by Zippa reports that around 80% of businesses survive in their first year. With 68.2% of them surviving rate in their second year. In the year 2022, the approval of business finance applications was 53%. This data was collected by FED Small Business.
As mentioned above, businesses with online presence are finding success. Suppose you want your business to survive. It is important to have an online presence for your own business, as the statistics by Zippa report, the business that posts blog content. They have higher leading growth than the businesses without one.
8. Recent Trends Of Small Business:
You might have followed recent trends on social media. But you might not know the trends that often occur for small businesses if you are running or have decided to run a small business. It is important to know about the trends. A Bank of America reports that around 57% of small businesses take proactive measures. To spread their risk, including using new technologies. Plus, they are using digital to make sales and diversify their revenue path.
Conclusion:
Suppose you were planning on running or starting a business. It is important to know what your position and your business position are. Know the business’s future and the performance of the past. That can help your business. Knowing business statistics for your business helps in making decisions. It helps you know what your consumers think and how to increase your sales.
The eight statistics will help you plan for your small business with its survival and future growth.
