Small Business Income - How Much Can Your Earn

Before starting any Small Business its necessary to get your goals into perspective and do a thorough feasibility study. Since you are deciding on starting a Small Business, you are actually thinking of keeping costs low by keeping your business model compact and your returns high. It becomes imperative to know priory how much your Small Business can earn. 

Making a Small Business run successfully and earn a return on investment comes much later. According to research majority of Small Business result in failure within the first one year of start-up. There are very few business ideas implemented properly which lead to success. The keyword here is "Implementation". A good Small Business idea if not implemented properly will lead to failure. 

The good news according to statistics is that 90% of Small Businesses which survive the first year and get established make good profit. The profit depends on several factors one of them being what the Small Business caters to. 

The problem with predicting how much a Small Business can potentially earn is because of the large number of variables associated with it. Variables like what is the customer base, is the Small Business Retail or Wholesale, where is the Small Business location, does it have large inventory or run from an apartment etc. 

Ideally, if a Small Business is able to give a return of $40,000 to $60,000 per annum it is considered good. These are not magic numbers and its good for you if your Small Business surpasses them. Its not the end of the road if it doesn't. Breaking even is a good start for a Small Business in the first year. The first year will give you good feeling of how to run your business and tie up any loose ends. 

Here is the punch line. According to statistics, all established Small Businesses posted an average income same as that of salaried individuals. So, its not difficult to reach the $100,000 mark. Perseverance will pay in your Small Business.

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