18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
Blog
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Four Trends Affecting Small Business Owners Today

Although small businesses today receive a number of incentives, often from the government, to get started, many of them fail within just a few years. As much as local, state, and federal governments have tried to provide opportunities for small businesses, there is still a great deal of risk and challenge involved in maintaining the business. Small business accounting Los Angeles firms can often help new businesses, especially in light of four recent trends that are specifically pertinent, and potentially harmful, to small business owners.

 

1.       Existing for Five Years No Longer Guarantees Success

In the past, businesses that survived those first five years usually settled into smoother years. Today, margins are tighter and even established businesses have considered closing their doors when faced with difficult economic climates. This is an important area where small business accounting Los Angeles firms can provide solutions.

 

2.       Small Business and Entrepreneurship Competition Is Stiff

More and more college graduates are looking at heading directly into entrepreneurial ventures and seasoned professionals who have had difficulty finding jobs are also looking at starting their own business. Just a few years ago, the percentage of people in the United States who were involved in a startup hit 13% – a record-breaking number. Too much competition can be very bad news for small businesses.

 

3.       Obtaining Business Loans Is Difficult

Even though there are government programs available, many small business owners still find it difficult to qualify for loans. Banks look at small business loans as unprofitable, so the qualifications are high and only those businesses with solid finances will be successful.

 

4.       Cash Flow Difficulties Lead to Business Failure

One of the biggest reasons behind small business failure is poor cash flow. When customers don’t pay, small businesses bear the brunt of the consequences. It can be very difficult to recover from those late or lost payments.

 

In order to survive in spite of these four trends, small business owners need to find an experienced financial partner.  Small business accounting Los Angeles firms can fill this need as they implement sound risk management strategies, manage cash flow, and seek out viable business loans.