At Intuit, our mission is to enable more small business to succeed. That’s why we decided to look more closely at the root causes of low survival rates among small businesses. We conducted a nation-wide survey that provides a snapshot of how small businesses get started, and some of the common risks that pop up in the early years.

1. A Portrait of How U.S. Small Businesses Get Started

2. At their outset, most United States small businesses
start with $10,000 or less in capital, primarily
funded from the founder’s personal savings.
Humble as their beginnings may be,
eventually robust results can be achieved.
Delivering 60% of net new jobs since
the end of the recession in mid-2013,
small businesses have revitalized U.S.
economic recovery.
Yet sustaining and growing a small-scale
company remains risky business.
The fact of the matter is:
Maintaining a healthy small business is incredibly difficult,
requiring mindfulness, hard work, and dedication. And as your
company grows, it requires facing down myriad challenges as
they arise—from a growing customer base, to recruiting and
managing employees, to maintaining cash flow.
Intuit’s committed to helping America’s
small-business owners overcome these
challenges. Together, we can transform that
$10,000 initial investment into successful
business, new jobs, and a thriving economy.
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Starting out

3. From Survive to Thrive
Setting Up Your Company for Success
The prospect of investing $10,000 is incredibly
empowering. It is, after all, a relatively small amount
of money, which means starting a business is within
anyone’s grasp.
But just how likely are that startup’s
odds for long-term success?
According to the Small Business Administration’s latest
statistics:
Only half of all new small businesses will
survive past 5 years.
Only one-third will survive 10 years. $
That’s too many failed businesses.
Too many great ideas gone too soon.
Too many good American jobs lost.
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4. Money Matters
Planning for a Prosperous Future
Don’t let financial anxieties plague your company’s well-being.
Heed the advice of the many who’ve come before you, as
hundreds of small-business owners weigh in on their
experiences in the startup journey.
64%
of small businesses begin
operations on $10,000 or less.
Shaking the uneasy feelings often
associated with starting a business can
be difficult. There’s no magic number to
hit to feel comfortable in your company’s
prosperity.
Cost to start a small
business in America:
Annual revenue needed to feel
confident in your business’
long-term health:
64%
$10,000 or less
12%
$10,000-$20,000
11%
$20,000–$50,000
13%
$50,000+
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35%
At least $30,000
22%
$30,000–$50,000
21%
$50,000–$100,000
22%
$100,000+

5. Other funding sources:
General opinion is split on whether it’s
currently easier to secure small-business
financing than it was during the recession:
49%
No change
51%
Securing
financing
is easier
So, where does most
startup money come
from?
3/4
of small-business owners use
their own personal savings.
11%
Financial institution:
10%
Family or friends
2%
Investors
1%
Government grants
or funding programs
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6. Starting Strong:
Enduring the Early Years
Consensus among small-business owners is
that the first year in business is the toughest.
When searching for a lifeline to sustain their well-being
during that first year, many small business owners seek
external guidance from various sources.
38%
Online
searches
23%
Friends who
own small
businesses
17%
Formal
education
12%
The Small
Business
Administration
46%
It’s the most
difficult year:
22%
It’s more
difficult than
most years
19%
It’s about the
same as other
years
8%
It’s not as
difficult as
other years
4%
It’s the
easiest year
icon
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7. Health, Wealth, and Wisdom
Seeking sound advice in the business realm
When asked what they’d do differently if given the chance
when starting out, small-business owners share some
common regrets.
67%
Write a better
business plan
65%
Spend more time
and money on
marketing
49%
Find a mentor
29%
Hire an accountant
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$
Nearly
2/3
of small-business owners (68%) recommend
spending more time and energy on mastering
financial management.

8. Shape Up and Help Yourself
Taking initiative to improve your company’s
potential
One of the easiest ways small-business owners can
increase their performance is to take advantage of
available financial management tools and resources.
1 3
Invest in new money-management
methods:
Seek professional help.
Improve your financial management in as easy as 1-2-3:
56%
use outdated tools, like
spreadsheets or pen
and paper
41%
use financial
management software
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Separate your finances.
Twenty-nine percent of small-business
owners use the same bank
account for personal and business
transactions.
Forty-two percent actively work
with accountants for advice and
business financial-management
support.
$ $
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9. Equipped for the Future
Using the tools at your disposal
Taking initiative to improve your company’s potential
One of the easiest ways small-business owners can
increase their performance is to take advantage of
available financial management tools and resources.
The QuickBooks Online
platform delivers:
A powerfully simple solution that
enables small-business owners
to tackle complex business
management tasks without
having to be experts.
An open, integrated platform with
best-in-class payroll and payments
solutions, as well as the world’s
largest selection of third-party apps
specifically designed for small
businesses.
A connection between businesses,
customers, and business partners
that lets company owners access
their business information anytime,
anywhere on the device of their
choice.
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10. Quickbooks Online by
the Numbers
In the last year alone:
81 million
invoices created
29 million
vendor relationships established
1 million+
new employees managed
$1 trillion+
global commerce received
$ $ $ $ $
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Served
24 million
new
customers
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11. Your Company Health,
In Your Hands
Simply put
Small-business owners aren’t taking advantage of the tools
at their disposal—things like financial management software
or accounting personnel’s expert advice.
At Intuit, we’re committed to tackling that
challenge together, providing tools to make it
easier than ever for small-business owners to
maintain their financial health.
Working together, we’re confident that more
$10,000 investments can mature into successful
small businesses.
Starting a small business can be monumentally empowering—
and it’s within your grasp.
It’s about developing an idea, seizing the potential, and
utilizing uncompromising drive to get the job done—even on a
mere $10,000 to start.
But keep aware of common pitfalls and challenges. When the
odds of long-term success are against you, every penny
counts. One misstep, one bad investment, one oversight can
drastically reduce those odds.
Inadequate financial management expertise remains one of
the single greatest reasons that only half of small businesses
make it to the infamous 5-year mark.
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12. Exercise Smart
Business Practices
Know Your Industry
It’s crucial for small-business
owners to understand the
inner-workings of their businesses:
• Who are your best customers?
• Which supplier has the best
service and support?
• What can you learn from your
competitors?
Cozy Up to Your Bank
• Financial institutions may provide a
better level of assistance to people
who demonstrate that they know
their businesses inside and out.
• Software offerings, such as
QuickBooks Online, provide
small-business owners a deeper
understanding of their business,
which improves your confidence
and leads to smarter decision-making.
Cash Flow is King
• Utilizing tools like QuickBooks
Online can enable small-business
owners to see exactly where their
money is traveling.
• As small-business owners better
understand their cash flows, the
more likely they are to succeed.
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13. quickbooks.intuit.com