Small Business Owners Expect Better Financial Health in 2013
The general sentiment about the U.S. economy is that it’s back on track. Job creation has steadily grown to start the year and more economic indicators continue to signal a return to normalcy. The good vibes are also being felt by small business owners, who in a recent study expect their enterprises to be in better financial standing in 2013.
In a poll by TD Bank, 49 percent of responding small business owners said they are either somewhat or very confident their business’s finances will fare better in 2013 than they did in 2011. Twenty-five percent said it was still too early to tell, and the same percentage reported they were not confident about financial health.
A big part of the more optimistic forecast on small business finances comes from the expectation among many entrepreneurs that sales will improve from last year: 47 percent are somewhat or very confident their sales will surpass those made in 2012. Thirty-one percent said they were unsure and 22 percent aren’t convinced 2013 will hold anything significantly better in regard to sales performance.
Small-business owners also expect to contribute to jobs growth, with 32 percent planning to hire at least one new employee in 2013. Overall, the large majority (59 percent) expect to maintain current staffing levels, while just 9 percent foresee downsizing.
The study also asked small-business owners to describe their business plan review habits. Thirty-six percent said they update their business plan once a year, 30 percent do it every quarter, and 20 percent evaluate it each month. Thirteen percent only review their plan when applying for new financing.
While the majority of small businesses expect conditions to improve over the course of 2013, entrepreneurs who still find themselves mired in an uncertain situation can look to National Funding for assistance in the form of a merchant cash advance or small business loan.