Business Creation Is a Complex Process

The decision to start a new business is often one of the most important personal choices an individual can make. Often it is the pursuit of a life-long dream and provides an opportunity for continuous personal growth, pride and fulfillment. But there are also risks to consider and significant financial commitments – the entrepreneur may be in debt from the very beginning and have monthly expenses until the venture is profitable.

A successful small business is a source of jobs in the community. It is a significant contributor to the economy and local government, and it helps to keep the community healthy and vibrant. Small businesses are also a source of innovation. Studies have shown that small firms are more likely to develop emergent technologies, judging by patent filings.

Business creation is a complex process, and there are many steps involved in the formation of a new business. Performing market research is the first step to ensuring that there is a clientele interested in your products or services. The research will help to identify potential competitors and understand the current status of the industry. This information will be documented in a business plan.

There has been a surge in business applications during the COVID-19 pandemic, according to Census Bureau data on Business Formation Statistics. This is a remarkable turnaround from recent trends, and the surge appears to have been broad-based across all major industry sectors, with double-digit percentage increases in transportation and warehousing; retail trade; accommodation and food services; and administrative and support activities.