If the past few years have shown us anything, it’s that Americans are anxious to become business owners. Despite a global pandemic, economic uncertainty, and layoffs in many industries, Americans created 10.5 million new businesses in the past two years.
Clearly, Americans are willing to push boundaries and break barriers to get our businesses up and running. In the midst of ongoing challenges, though, is 2023 really the right time to start a business?
Read on to see what the data says about the new challenges, opportunities, and considerations for prospective business owners in 2023. With data on your side, you can make the best choice for your potential business.
In 2023, new business owners see their fair share of challenges. Inflation is high, layoffs are all too common, and economists constantly wonder whether a recession is right around the bend.
But even in the midst of these challenges, experts are calling 2023 the year of business recovery. New trends, technology, as well as economic changes paint a more hopeful future for business owners — and the data agrees. Here’s what you need to know:
The economy is growing. While growth is slower than in previous years, the World Economic Outlook predicts that the global economy will grow 2.8% in 2023 — and 3% in 2024. This upward trend also means that owners can feel confident about their businesses.
Technology is advancing. From artificial intelligence to automation, new technology in 2023 can make it easier, faster, and cheaper to start your business. In fact, 85% of small business owners say new technology helps them maintain their business, and 75% say AI will help them begin new businesses.
New funding is available. In order to support new businesses in unprecedented times, the U.S. government and other organizations offer many new financing options. The U.S. Small Business Administration (SBA) offers loan programs, like the 7(A) loan guarantee program and 504 loan program. Organizations like the National Association for the Self-Employed (NASE) and Comcast RISE also offer a variety of grants.
Small business support is growing. A study from American Express finds that 88% of customers prefer to shop at small businesses, particularly if those businesses contribute to the local community. In other words, if you stay active in your community, you can expect to see support.
If you want to start a financially viable business in 2023, you should take the right measures to make the right choices. Here are a few tips and tricks to help you start your business:
Create a detailed financial plan that outlines your expenses, projected revenue, and cash flow forecast.
Consider loans and grants to fund your business.
Use technology, especially AI, to your advantage.
Track key performance indicators (KPIs).
Seek out expert advice. Foster Financial CPA offers several services to help you start a thriving business in 2023. From small business bookkeeping to cash flow services, we can help you adapt to changing times and come out on top. Contact us today to get started.
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