The Small Business Landscape

THE SMALL BUSINESS LANDSCAPE: PITFALLS, PLANS & PERSPECTIVES Small businesses make up 80% of the total number of businesses in the U.S. today. And for their owners, today's economic environment presents a unique set of challenges and opportunities to build their business. Here we explore some of the pitfalls, plans and perspectives of current business owners to get an idea of how they succeed. WHERE DO YOU GO FOR An accountant/bookkeeper FINANCES A financial advisor FINANCIAL ADVICE? Other small business owners When asked their biggest challenge in managing cash flow, small business owners cited: 74% Family/friends A banker 42% 49% Online 26% A lawyer Nationally-recognized expert 58% Local non-profit or government organization such as the SBA 68% 26% 45% 9% 29% GETTING FINANCIAL ADVICE: 73% of small business owners say they need occasional financial advice or support 42% Low profits and lack of Not getting paid on time by clients and Not getting 65% out invoices business in a timely customers fashion GETTING AND USING CREDIT: I have it, but I only use it in an emergency 7% 1% GETTING PAID: 78% of small business owners who applied for a business loan during the last two years O lam trying to pay down my balance so I have a portion available to use 19% 72% of small business owners use online banking to help keep them organized. 40% make direct payments to help were approved. 4% It is the primary source of cash flow for my business 50% 18% If you applied for a business loan within the last two or more manage cash flow. 78% O It is maxed out 23% O Don't know Yes No CHOOSING A BANK years, were you approved? Which of the above best describes how you use/manage your line of credit? Don't know MOST IMPORTANT FACTORS 20% 18% 17% CONVENIENT 72% of small business owners look LOCATION to their bankers for advice about the HUMAN RESOURCES benefits of an SBA RELATIONSHIP loan or how to REWARDS manage payroll OF SMALL BUSINESSES PLAN TO 31% HIRING: HIRE NEW EMPLOYEES WITHIN THE ACC TO LOCAL NEXT 12 MONTHS. EXPERTISE What is the number one challenge you face as you look to retain top talent? M11 22% 19% 19% TRAINING: Finding employees with the skills required for your business AVERAGE TRAINING EXPENDITURES PER LEARNER Providing competitive salaries $1,041 Finding employees with a good work ethic Providing competitive health care and retirement benefits 18% AVERAGE HOURS OF TRAINING PER EMPLOYEE Providing the extra perks of larger companies, such as a bonus, flexible hours, child care 12% 40.1 HRS 56% BENEFITS: OF SMALL BUSINESS OWNERS POLLED OFFER A FINANCIAL BENEFITS PACKAGE. 31% OFFER A 401(K) PLAN. RISKY EMPLOYEES: A 2011 survey conducted by Hayes International showed that: HIGH RISK LOW RISK I have frequently associated with fellow employees who admitted they were stealing merchandise from the company. 5.4% Various items on the Applicant 18.4% 9.3% 1.7% Review ques- tionnaire and I am not an honest person and might steal or cheat. 7.8% the percent of high and low 1.3% risk applicants admitting 5.2% to each. I could be tempted to steal from my employer. 26.7% I might help friends steal from my company. 14.6% MARKETING I have stolen money within the past 3 years. 17.5% ↑ 47% I have stolen merchandise within the past 3 years. 15.9% 4.5% I would possibly use marijuana/illegal drugs in the future. 23.1% 6.5% I have previously sold marijuana or other illegal drugs. 4.3% 0.9% of business owners surveyed reported that they plan to amp up their marketing efforts over the next 12 months. EFFECTIVE MARKETING TECHNIQUES: WEBSITES AND TRAFFIC: 84% 38% WORD OF MOUTH & DIRECT MAIL SEARCH CUSTOMER REFERRALS OR E-MAIL ENGINES 55% 43% ADVERTISING - PRINT, BROADCAST, RADIO, ETC. NETWORKING WITH OTHER 17% SPECIALTY SMALL BUSINESS OWNERS WEBSITES How effective do you find these techniques in 42% SOCIAL Consumers find local 3% SOCIAL marketing your business? MEDIA businesses through: MEDIA 75% SOCIAL MEDIA: SIGNAGE: of small businesses report that they plan to increase social media marketing over the next 12 months. 64% of customers report that they have failed to find a store due to small or unclear signage. AGES 18-24 55% 25-34 52% 35-49 42% 50-64 46% 65+ 50% % of women who have driven a business due to small or unclear signage or failed to find SOURCES http://www.thesignagefoundation.org/LinkClick.aspx?fileticket=5slQpadZY50%3d&tabid=59&mid=D485 http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=mediaMention&id3D467320 http://hayesinternational.com/news/annual-retail-theft-survey/ 100,000 Shoppers Can't Be Wrong: Signage Communication Evidence from The Brand Spark/Better Homes and Gardens American Shopper Survey. James Kellaris, Ph.D. University of Cincinnati. The National Signage Research & Education Conference 2001. O0000 000