JoAnn Laing's Blog - All About Small Business

There is a persistent myth in business that the “right” time to start a company will announce itself with flashing lights and a strong economy. History — and people — say otherwise.

This year’s Intuit QuickBooks Entrepreneurship Report tells a different story about the American mindset. One in three U.S. adults (33%) plan to start a business or side hustle in 2026 — a staggering 94% increase year-over-year. The United States now leads globally in entrepreneurial intent.

Let that settle in.

Despite ongoing economic pressure, Americans are not waiting for conditions to “improve.” They are building anyway.

Entrepreneurship is no longer viewed primarily as a risk. Increasingly, it is viewed as a necessity.

The New Survival Instinct

Periods of uncertainty have always produced builders. What is different now is the scale — and the psychology.

Nearly half (47%) of adults earned money from a side hustle in the past year. Yet only one in five formally registered their business. We are witnessing the rise of what some call the “underground” or informal economy: capable, skilled professionals monetizing expertise without infrastructure.

This signals two things:

First, the appetite to create income streams beyond traditional employment is enormous.
Second, many aspiring founders are still testing the waters — experimenting before formalizing.

There is wisdom in that.

Start small. Validate demand. Learn your market. Then build structure around what works.

The Cost Myth

Ask someone how much it takes to start a business and you’ll often hear a number that sounds like a small mortgage.

According to the QuickBooks data, 47% of Americans cite cost as the top hurdle to starting a business. On average, they estimate needing $28,000 to launch. The median actual startup cost? Just $12,000 — less than half the perceived requirement.

This gap between perception and reality matters.

In my advisory work, I see it often: talented professionals stall because they assume scale must precede proof. In truth, clarity precedes capital. A well-defined problem, a narrow target market, and a disciplined cost structure dramatically lower the barrier to entry.

Entrepreneurship has never been inexpensive — but it has become far more accessible.

Generational Urgency

Entrepreneurial intent is not evenly distributed.

Gen Z leads in intent, with 43% planning to launch. Millennials report the strongest sense of urgency, with 74% saying they feel pressure to start now.

This urgency is telling. It reflects more than ambition. It reflects an economic recalibration. Traditional employment is no longer assumed to be the safest path to security. Ownership — even partial ownership through a side venture — feels more controllable.

For experienced professionals and executives, this should prompt reflection. The next generation is not waiting for permission, credentials, or perfect timing. They are experimenting, iterating, and leveraging tools that dramatically reduce friction.

Which brings us to the most significant shift of all.

AI as the New Co-Founder

More than 60% of aspiring entrepreneurs say they plan to use AI to help launch their businesses in 2026. Among Millennials, that number rises to 75%, with planned uses spanning branding, research, and operations.

AI has quietly become the most affordable intern, analyst, and creative partner a founder can access.

What once required agencies, research teams, or junior staff can now be prototyped in days. Business plans are refined faster. Customer personas are clearer. Marketing experiments are cheaper. Operational systems are easier to design.

AI will not replace judgment, resilience, or strategic thinking. But it dramatically compresses the time between idea and execution.

For many founders, that compression is the difference between hesitation and action.

Starting With Discipline

Enthusiasm is powerful. Data-driven urgency is even more so. But discipline remains the dividing line between hobby and enterprise.

If you are considering launching a business — whether as a primary venture or a side initiative — consider three foundational questions:

1. What specific problem am I solving, and for whom?
2. What is the smallest viable version of this idea I can test?
3. What financial and operational thresholds define success for me?

Entrepreneurship born from necessity can still be strategic. In fact, it must be.

The American entrepreneurial surge is not simply about optimism. It is about agency. People want more control over income, flexibility, and trajectory. They are choosing to build rather than wait.

And perhaps that is the most important takeaway.

There may never be a perfect economic backdrop. Markets fluctuate. Conditions shift. Headlines oscillate between caution and exuberance.

But the impulse to create — to solve, to serve, to build value — persists.

The question is not whether conditions are ideal. The question is whether you are prepared to start before you feel entirely ready.

Small businesses today face intense financial pressure from multiple directions. Rising costs, unpredictable cash flow, and tighter credit standards can turn an otherwise healthy business into a constant struggle to stay afloat.

Rising costs and shrinking margins

Inflation and higher operating costs are pushing up expenses for rent, utilities, materials, and wages faster than many small businesses can safely raise prices. This squeezes profit margins and leaves little room for error. On top of that, customers may resist price increases, forcing owners to absorb costs or risk losing business.

To manage rising costs and protect margins, small businesses can:

• Review pricing regularly and make smaller, incremental increases instead of large, infrequent jumps.
• Analyze product and service profitability to phase out low-margin offerings and focus on the most profitable ones.
• Renegotiate contracts with landlords, vendors, and service providers or seek competitive bids.
• Invest in efficiency (automation, process improvements, or training) to reduce waste and labor hours.

Cash flow gaps and late payments

Many small businesses are profitable on paper but constantly short on cash. Long payment terms, late-paying customers, and mismatched timing between expenses and revenue create cash flow gaps. When cash is tight, owners may delay paying their own bills, stretch payroll, or rely heavily on personal funds.

To strengthen cash flow and reduce stress:

• Tighten credit policies: require deposits, partial prepayments, or shorter payment terms for new or high-risk customers.
• Offer small discounts for early payment and enforce late fees consistently.
• Use simple cash flow forecasting to anticipate shortfalls a few weeks or months ahead.
• Separate personal and business finances, and avoid plugging recurring gaps with personal credit cards.

Access to credit and rising interest rates

As lending standards tighten and interest rates rise, borrowing becomes more expensive and harder to obtain. Small businesses may be denied traditional bank loans or offered only high-cost credit, making it risky to finance growth, inventory, or equipment. Existing variable-rate debts can also become more burdensome as payments increase.

To navigate financing challenges more safely:

• Build and maintain strong financial records (accurate bookkeeping, up-to-date financial statements, and tax filings).
• Nurture relationships with local banks, credit unions, and community lenders before funding is urgently needed.
• Explore diverse financing options such as lines of credit, equipment financing, and government-backed programs rather than relying on a single source.
• Prioritize paying down the highest-interest debt first to free up cash and reduce risk.

Tax, compliance, and unexpected expenses

Taxes, regulatory changes, insurance premiums, and surprise expenses (equipment failure, legal issues, or sudden repairs) can strain limited budgets. Without planning, these costs can trigger a cascade of late fees, penalties, or emergency borrowing.

To reduce the impact of these financial shocks:

• Set aside a percentage of monthly revenue in separate reserve accounts for taxes and emergencies.
• Work with a qualified accountant or tax professional to optimize deductions and stay compliant.
• Review insurance coverage regularly to ensure key risks are covered without overpaying for unnecessary policies.
• Create a simple annual budget that anticipates major recurring costs and scheduled investments.

Owner burnout and underpricing

Many small business owners underpay themselves or underprice their products to win business or “be fair” to customers. Over time, this leads to burnout, resentment, and an unsustainable business model that cannot fund growth, hiring, or proper systems.

To address underpricing and owner strain:

• Benchmark prices against competitors and adjust to reflect the true value delivered, including expertise and service.
• Factor all costs into pricing: labor, overhead, materials, taxes, and a reasonable profit margin.
• Gradually shift away from unprofitable customers or projects that consistently drain time and cash.
• Build a basic compensation plan for the owner that is treated as a non-negotiable business expense.

Building financial resilience

No small business can eliminate financial pressure, but it can build resilience. Clear numbers, intentional pricing, and disciplined cash management turn guesswork into informed decisions. Over time, that stability becomes a competitive edge—allowing the business to survive downturns, invest in growth, and provide more security for the owner and employees.

Key practices that strengthen resilience include:

• Maintaining timely, accurate financial reports and reviewing them monthly.
• Keeping a modest emergency fund to cover at least one to three months of critical expenses.
• Planning ahead for big investments instead of reacting in crisis.
• Seeking advice from financial professionals, mentors, or peer groups to identify blind spots and opportunities.

With clear numbers, smart pricing, and steady cash habits, even today’s financial pressures can become a launchpad—helping your small business grow stronger, more resilient, and more profitable than ever.

Supply chain disruptions and unpredictable lead times can quietly strangle a small business. A single delayed shipment can stall production, drain cash, and damage customer trust.

Why disruptions hurt so much

Small businesses often run lean: low inventory, few backup suppliers, and limited logistics support. That efficiency becomes a weakness when ports clog, factories shut down, or carriers miss pickups.
With little bargaining power, smaller firms are usually last to get updates or priority, making planning workloads, staffing, and delivery dates a guessing game.

Ways to reduce risk

You cannot stop every disruption, but you can make them less painful by planning ahead. Focus on building options before you need them.

• Diversify key suppliers (ideally in different regions or using different routes).
• Identify “critical” items and hold slightly higher safety stock for those only.
• Negotiate realistic lead times and clear service expectations in writing.
• Share rough forecasts with suppliers so they can prepare capacity.

What to do when things slip

When a disruption hits, speed and clarity matter more than perfection. The goal is to contain the impact and preserve relationships.

• Quickly map which orders, customers, and products are affected.
• Explore partial shipments, substitutions, or temporary product tweaks.
• Inform customers early, give honest new timelines, and offer options.
• Prioritize high-value or time-sensitive orders first.

Improve after every disruption

Each disruption is data for making the next one less damaging. Treat it as a short post‑mortem, not just a fire drill.

• Ask what early warning signs were missed and how to catch them sooner.
• Adjust reorder points, safety stock, or supplier mix based on what happened.
• Document a simple “playbook” so the next disruption is handled faster.

Use simple tools for visibility

You do not need enterprise software to gain control; even basic systems help.

• Use inventory and order management tools instead of scattered spreadsheets.
• Track lead times by supplier to see who is consistently reliable.
• Choose logistics partners that provide real-time tracking and proactive updates.

When done well, supply chain resilience becomes a selling point: customers notice when you communicate clearly, keep promises more often than competitors, and recover quickly when the unexpected happens.