Education: The Small Business Owner’s Ace to Improving Success Odds

Anyone can own a business. Owning a business simply entails obtaining a business license. However, not everyone can own and run a successful small business, because more is involved than what most people believe, including identifying and managing all aspects of operations, expense projections, supply channels, taxes, human resources issues, and a myriad of other back-stage details.

Business Operations

Even a sole proprietorship, the simplest business structure, requires accurate financial record keeping, tax payments, permit fees if applicable, overhead for rent, utilities and wages, as well as the supply chain and delivery management.

The business owner must know how to properly and effectively advertise the business. Not everyone walks or drives by the shingle-adorned doorway, so potential customers must learn the business exists, what it provides, and how much the products will cost them. The advertising should be multifaceted to reach as many people as possible in the most cost effective manner, and the advertising campaign must be constantly evaluated, revised, and tested for improvements.

If the business has employees, the owner must know the employment laws—local, state, and federal—and the related tax issues. If he or she doesn’t know and thoroughly understand them, an outside firm may be required which increases expenses.

The business owner must know payroll operations, issues and payments. If not, the business owner must seek out that expertise and retain those services.

Insurance—worker’s compensation, personal, and business—issues, prices, and policy comparisons must be examined and resolved in accordance with jurisdictional requirements.

The business owner must in addition to all the above, run the business, striving toward profitability.

Education Paths

While some business owners wander and stumble into black ink on a financial statement and become profitable, most do not. More than 75 percent of all new small businesses fail during the first year of operation because the small business owner does not know enough to have a fair chance at success. Obtaining a degree that directly relates to business operation skyrockets the odds of success.

A few of the degree fields that often help small business owners include:

1. Business: Wide-ranging courses encompass virtually all operational requirements in any business size. Usually included are at least glancing exposure to finances, advertising, marketing, and the art of negotiation. A business degree is one of the most valuable options to anyone entering the business arena.
2. Marketing: Marketing entails more than buying advertising space. Marketing includes advertising and results in sales, but coordinating, evaluating and adjusting a marketing campaign requires more than buying ad space in more than one media. Knowing the foundations of good marketing enhances every advertising dollar spent and streamlines and improves the return on investment.
3. Finance and Accounting: Proper accounting procedures assist in tracking wayward spending, incorrectly paid or missed taxes, unpaid or incorrectly paid bills, and wage and compensation entanglements. Being able to perform the financial and accounting functions oneself, reduces external expenses for the business owner.
4. Human Resources: This specialized degree prepares the earner to assist in management of the business and the career can expand as the work force expands. Compliance with regulations and laws avoids fines, penalties, and lawsuits—all detrimental to the business’ bottom line.
5. Enterprise Focus: Possessing a degree or at least certification in the field in which the business focuses gifts creditability and trust to the business community and potential customers. While it’s possible, odds are that if a certified plumber opened a convenience store, financing would be harder to come by than if he or she opened a plumbing contracting business. Know the field and prove it with a related degree or certification.

Summary

Enthusiasm and dedication are imperative if a person wants to own his or her own business, but if it was easy, everyone would reach that crucial one-year anniversary and find comfortable profit margins. Unfortunately, it’s not easy to open, run and find success as a small business owner. Prepare and arm—get a higher education degree that enhances the chances of success.

About the Author
JC Ryan is a freelance writer for MyCollegesandCareers.com. My Colleges and Careers helps people determine if an online education is right for them and helps them understand which online colleges and online courses they can choose from to reach their goals.