Several recent surveys are indicating positive growth in the small business world, which makes it a great time for owners to obtain a working capital loan to find success in the new year. Many owners struggle with finding the perfect time to make crucial investments they hope will propel their business to new heights. Some are wary about economic conditions not being just right, while others feel their customer base might not be strong enough to sustain significant growth projects for the business.
There’s never a perfect time since there will always be a risk associated with any business endeavor. However, by carefully planning out a strategic route based on both external and internal factors, owners can optimize their available financing options, such as a small business loan, to finally take the steps to truly boost sales and expand the company.
Surging small business activity
Despite some economists predicting a slowing economy and a difficult sales landscape, the actual small business owners working on growing their companies have a much different view of the current situation. According to a recent survey conducted by the Ewing Marion Kauffman Foundation, a private organization focused on education and entrepreneurship, 49 out of 50 states and 38 of the top 40 metro areas in the country are all experiencing a rise in small business activity. Typically small business activity has a historical average of zero, yet last year this number rose to an index reading of 0.07.
E.J. Reedy, director in Research and Policy at the Kauffman Foundation noted that this trend will not only benefit the individual businesses, but the country as a whole.
“Following a post-recession downward and stagnant trend in small business activity, we’re now seeing Main Street Entrepreneurship begin to rise,” Reedy said. “This obviously is good news given that these small businesses make up 63 percent of all employer firms nationally.”
With small business activity on the upswing, owners should take advantage of this time to make the investments they may have been putting off for whatever reason. Whether this involves upgrading technology, purchasing more inventory or hiring additional workers, by putting this money back into the company now while conditions are good, owners can make the most of their efforts and ideally see a significant return on investment.
In addition to the Kauffman Foundation survey, the small business community of the online reviewing company, Yelp, is also bullish on their prospects for the new year. According to Yelp’s first annual Small Business Pulse Survey, 85 percent of active small business users on the site anticipate an average of 26 percent growth in the new year. The survey, conducted by Michael Luca, a Harvard University professor of business administration and Yelp’s Economist in Residence, revealed a clear majority of small business owners felt optimistic about the coming year.
“It’s interesting to peek into the minds of small business owners, to see how they’re feeling and what they’re thinking about,” said Luca. “This group of businesses is clearly optimistic, which is consistent with relatively strong consumer sentiment and a recent uptick in retail sales.”
With this recent string of positive news and optimistic forecasts for the new year, small businesses are in a good position to benefit from these advantageous economic conditions. Owners who looking for that additional competitive edge should consider obtaining a working capital loan to make the major investments necessary to find success in the new year. By placing themselves at the forefront of innovative investment now, business owners can reap the rewards of higher profits later in the year.