5 Statistics For Small Business Success

Posted by Karen Erdelac on Dec 18, 2017

5 Statistics For Small Business SuccessSmall business owners are beginning to realize the benefits of detailed accounting, keeping up with technology trends and monitoring their market. Maintaining a small business is hard work and can consume an owner without the proper support. Here we’ve assembled 5 statistics to help guide you towards longevity and profitability.

Cash Flow

82% of businesses that fail do so because of cash flow problems. (U.S. Bank)

Having the proper financial backing, accounting and access to cash to grow your business are the most important factors in the success of your small business. Without proper cash flow you stand to lose out on growth opportunities and may be unprepared for unforeseen issues.

Approval Rates

Big banks only approved around 24.1% of small business loans.

Smaller banks have a much higher approval rate of around 48.9%. Alternative Lenders approved 58.2% of loan requests. (Source: Biz2Credit 2017)

Alternative funding has become the most popular form of small business funding due to its less stringent requirements, easier payback options and shorter approval times. As the industry has grown and matured, the most reputable and reliable companies are the ones that have survived. Once thought of as a risk, alternative lending has been legitimized as a great option to grow your business.

Social Media

5 Statistics For Small Business SuccessAlmost a quarter of online shoppers (23 percent) are influenced by social media recommendations. (BigCommerce)

Social media has become an essential marketing tool for small business owners in nearly every industry. Having a strong social presence increases your reach, brand recognition and can provide direct sales opportunities. Social media can drive traffic to your website, ecommerce store and your brick and mortar location through organic means or targeted paid campaigns.

Staffing

48% of businesses say their quality hires come from employee referrals. After that was third party website or online job boards at 46%. In third were social professional networks at 40%. (Source: LinkedIn 2017)

The people you employee greatly influence the profitability and reputation of your small business. The ability to make the correct hires and maintain top talent will ultimately determine the growth and longevity of your company. With employee referrals representing the highest rate of quality employees, treating your current workers properly has become even more important.

Website

The average revenue of a small business is $3.6 million. That number increases to $5.03 million if the business has a website. (Crowdspring 2017)

Even if you’re not making online sales it is vital for small businesses to have a website. Most people research products and companies online before making a purchasing decision. If you lack a strong online presence and a quality website, you may go unnoticed by a large portion of the population.

With over 12 years in the business, Quikstone Capital Solutions has proven to be a trustworthy and knowledgeable lender specializing in small business funding. Over 60% of our clients are renewals looking to continuously grow their business. Whether you need cash for emergencies, cash to cover unexpected costs, or if you’re looking to make long overdue improvements, Quikstone Capital can help.

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Topics: Small Business