U.S. Small Businesses May Be Down, But They're Not Out

B-Side Marketing Project: Vol. 3 - U.S. Study U.S. Small Businesses May Be Down, But They're Not Out. cargo First, let's get to know our Small Business Owner. Our 2012 study helped identify 4 Drivers behind SBO's. The Mentality of SBO's They are driven and motivated. A Communication Bias "My customers feed off me. If I do not emit optimism, I will fail." The Relationship with Self "My business is my life." A Cognitive Bias "I impact my business, not the economy, luck or external forces." Building on the Foundation Key Discoveries from 2012 52% of SBO's believe brands do not market to them effectively. 7 said brands don't make an effort understand their needs. %to understand their business. said brands try to sell to 43% 7said companies do not 46% them versus talk to them. 45% The Drivers Challenged in 2013 Waning Optimism 65% are optimistic about their business, down 10% from 2012. What factors are causing SBO's to lose optimism and long-term focus? Reactive vs. Proactive 23% plan to be proactive, down 43% from 2012. Slowed Growth 16% are planning for growth, down 18% from 2012. "Beyond My Control Factors" have made Accurate Forecasting the #1 challenge of owning a small business. 131% %24 †15% Employee Benefit Costs Government 113% Regulations What effect does this Rising Tax Costs have on SBO's focus and brand selection? Long Term Focus 2012 SMB's were building for tomorrow with Business Development being the #1 spending focus. 2013 Short Term Focus SMB's are predominantly focused on sales today with Marketing, PR & Advertising being the #1 spending focus. SBO's are willing to change brands to get the service they want. How Can Brands Change Their Approach? Progress has been made in 2013, but there is still room for improvement. 44% of SBO's say brands fail to market to them effectively. 39% SBO's want to feel of SBO's say companies try to sell to them versus talking to them. SUPPORTED 35% Poor Customer Service is the #1 reason SBO's change brands. of SBO's say companies don't make an effort to understand their business. Where To Reach SBO's Our study uncovered the top outlets influencing SBO's buying decisions and the best times to digitally connect. 84% use Search Engines 77% use Trade Magazines 75% use Trade Shows & Events When To Reach SBO's 34% spend 1-3 hours a day online for their business. SBO's are most active online Mondays and Fridays. 99% use email for business daily. What does it all mean? Loyalty=Loyalty 24 Brands who are loyal to SMB's make SMB's loyal to them. cargo Cargo is the authority on marketing and advertising to small businesses. We help a wide range of brands in a wide range of industries engage and influence the decision makers of millions of small businesses. metricsathecargoagency.com thecargoagency.com USA | 640 S. Main St, Ste 200, Greenville, SC 29601 atweetcargo 864.704.1180 CA | 489 Queen St E, STE 201, Toronto, ON M5A 1V1