TYLER, Texas — In his State of the State Address, Governor Greg Abbott shined a light on how small businesses are doing in Texas.
According to Gov. Abbott, 9/10 businesses in the state are small and despite their size, employ almost half of Texas residents.
Ross Buhrdorf with ZenBusiness explained the three main tiers of a business. There's micro, which is a business with less than 10 people. Small businesses pick up after that between 10 and 499 employees and a business with 500 employees or more qualifies as large.
He said, "As a small business owner, you don't have to know everything."
You especially don't have to know everything now, during a pandemic that has put a screeching halt on some people’s plans to get their business started.
But Buhrdorf has seen 8,000 businesses get off the ground in Texas this past year and says yours can too. The most successful businesses tend to be in the service industry. Think plumbers, electricians and consultants — the jobs that solve a problem or fulfill a need for someone.
Buhrdorf says that the number one reason why businesses go south is that there isn’t a market need for them.
"Quickly following the second reason is you run out of money," he said.
Avoiding these common pitfalls will take some leg work on your end. Find an advisor. Also, visit Sos.texas.gov for tips on how to choose a business structure.