A Portrait of How U.S. Small Businesses Get Started

At their outset, most United States small businesses start with $10,000 or less in capital, primarily funded from the founder’s personal savings.

The fact of the matter is:Maintaining a healthy small business is incredibly difficult, requiring mindfulness, hard work, and dedication. And as your company grows, it requires facing down myriad challenges as they arise—from a growing customer base, to recruiting and managing employees, to maintaining cash flow.

Intuit’s committed to helping America’s small-business owners overcome these challenges. Together, we can transform that $10,000 initial investment into successful business, new jobs, and a thriving economy.

Humble as their beginnings may be, eventually robust results can be achieved.

Delivering 60% of net new jobs since the end of the recession in mid-2013, small businesses have revitalized U.S. economic recovery.

Yet sustaining and growing a small-scale company remains risky business.

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Starting out

From Survive to ThriveSetting Up Your Company for Success

According to the Small Business Administration’s latest statistics:

The prospect of investing $10,000 is incredibly empowering. It is, after all, a relatively small amount of money, which means starting a business is within anyone’s grasp.

But just how likely are that startup’s odds for long-term success?

That’s too many failed businesses. Too many great ideas gone too soon. Too many good American jobs lost.

Only half of all new small businesses will survive past 5 years.

Only one-third will survive 10 years.

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Money Matters Planning for a Prosperous Future

Don’t let financial anxieties plague your company’s well-being. Heed the advice of the many who’ve come before you, as hundreds of small-business owners weigh in on their experiences in the startup journey.

64%of small businesses begin operations on $10,000 or less.

Shaking the uneasy feelings often associated with starting a business can be difficult. There’s no magic number to hit to feel comfortable in your company’s prosperity.

That’s too many failed businesses. Too many great ideas gone too soon. Too many good American jobs lost.

Cost to start a small business in America:

Annual revenue needed to feel confident in your business’ long-term health:

64%$10,000 or less

12%$10,000-$20,000

11%$20,000–$50,000

13%$50,000+

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35%At least $30,000

22%$30,000–$50,000

21%$50,000–$100,000

22%$100,000+

General opinion is split on whether it’s currently easier to secure small-business financing than it was during the recession:

Other funding sources:

49% No change

51%Securing financing is easier

So, where does most startup money come from?

3/4 of small-business owners use their own personal savings.

11%Financial institution:

10%Family or friends

2%Investors

1%Government grants or funding programs

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Other funding sources:

Starting Strong: Enduring the Early Years

Consensus among small-business owners is that the first year in business is the toughest.

When searching for a lifeline to sustain their well-being during that first year, many small business owners seek external guidance from various sources.

38%Online searches

23%Friends who own small businesses

17%Formal education

12%The Small Business Administration

46%It’s the most difficult year:

22% It’s more difficult than most years

19%It’s about the same as other years

8% It’s not as difficult as other years

4%It’s the easiest year

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Health, Wealth, and Wisdom Seeking sound advice in the business realm

When asked what they’d do differently if given the chance when starting out, small-business owners share some common regrets.

Write a better business plan

Spend more time and money on marketing

Find a mentor

Hire an accountant

67%

65%

49%

29%

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Nearly 2/3 of small-business owners (68%) recommend spending more time and energy on mastering financial management.

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Shape Up and Help YourselfTaking initiative to improve your company’s potential

One of the easiest ways small-business owners can increase their performance is to take advantage of available financial management tools and resources.

Invest in new money-management methods:

Seek professional help.

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Improve your financial management in as easy as 1-2-3:

56% use outdated tools, like spreadsheets or pen and paper

41% use financial management software

Separate your finances.

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Twenty-nine percent of small-business owners use the same bank account for personal and business transactions.

Forty-two percent actively work with accountants for advice and business financial-management support.

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Equipped for the FutureUsing the tools at your disposalTaking initiative to improve your company’s potential

One of the easiest ways small-business owners can increase their performance is to take advantage of available financial management tools and resources.

The QuickBooks Online platform delivers:

A powerfully simple solution that enables small-business owners

to tackle complex business management tasks without

having to be experts.

An open, integrated platform with best-in-class payroll and payments solutions, as well as the world’s largest selection of third-party apps specifically designed for small businesses.

A connection between businesses, customers, and business partners that lets company owners access their business information anytime, anywhere on the device of their choice.

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Quickbooks Online by the Numbers

In the last year alone:

81 million invoices created

1 million+ new employees managed

29 million vendor relationships established

$1 trillion+ global commerce received

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Served 24 million new customers

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Your Company Health, In Your Hands

Simply putSmall-business owners aren’t taking advantage of the tools at their disposal—things like financial management software or accounting personnel’s expert advice.

At Intuit, we’re committed to tackling that challenge together, providing tools to make it easier than ever for small-business owners to maintain their financial health.

Working together, we’re confident that more $10,000 investments can mature into successful small businesses.

Starting a small business can be monumentally empowering—and it’s within your grasp.

It’s about developing an idea, seizing the potential, and utilizing uncompromising drive to get the job done—even on a mere $10,000 to start.

But keep aware of common pitfalls and challenges. When the odds of long-term success are against you, every penny counts. One misstep, one bad investment, one oversight can drastically reduce those odds.

Inadequate financial management expertise remains one of the single greatest reasons that only half of small businesses make it to the infamous 5-year mark.

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Exercise Smart Business Practices

Know Your IndustryIt’s crucial for small-business owners to understand the inner-workings of their businesses:

• Who are your best customers?• Which supplier has the best

service and support?• What can you learn from your

competitors?

Cozy Up to Your Bank• Financial institutions may provide a

better level of assistance to people who demonstrate that they know their businesses inside and out.

• Software offerings, such as QuickBooks Online, provide small-business owners a deeper understanding of their business,

which improves your confidence and leads to smarter decision-

making.

Cash Flow is King• Utilizing tools like QuickBooks

Online can enable small-business owners to see exactly where their money is traveling.

• As small-business owners better understand their cash flows, the more likely they are to succeed.

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