Industry Leaders Like You Predict Small Business Outlook for 2015
Every year, a State of Small Business report is released from Wasp Barcode Technologies. Now that we’re three months into 2015 and Q1 is about to come to a close, Direct Capital wanted to showcase the report and the predictions made for this year. We thought it would be helpful to see people in your world – business owners, decision makers, and industry leaders – discussing how the small business market is shaping up.
To give some context to this report, there were 1,088 respondents, 100% of which are involved in decision making for their business.
2015 Small Business Outlook
- Confidence in the economy: In comparison to 12 months ago, 47% of respondents expect the economy to be either significantly or slightly better, while 31% don’t believe there will be a change at all.
- Revenue growth: Though less than half of respondents believe the economy will improve in 2015, 57% expect to see revenue growth this year, while 26% don’t expect any changes. Fun Fact: 41% of product companies are expecting a 5% increase in revenue, higher than that of non-product companies.
- Strategies to increase growth: Each small business and market will need different things to grow. Because we feel all of these tactics are worthwhile, we’ll show you what these businesses feel is most important and let you decide which strategy you should focus on for your business.
- Improve customer experience and retention: 56%
- Invest in new customer acquisition methods: 45%
- Expand into new markets: 27%
- Develop and launch new products/services: 22%
- Invest in training or tools to enhance employee productivity: 20%
- Bring on new employees: 18%
- Open new stores: 5%
- Top 5 small business challenges: 48% of the business owners in the small business market said that growing revenue was their biggest challenge. Following in that list are increasing profit, cash flow, hiring employees, and raising capital and funding.
- Top 5 mid-sized business challenges: Almost exactly mirroring the small business market, 45% of respondents here said growing revenue and hiring employees would be equally as challenging in 2015. Employee healthcare, government regulations, and increasing profits fall next in line.
- Top 5 large business challenges: For the large business market, 56% of respondents said hiring employees would be the toughest challenge to overcome. Next, they said growing revenue, government regulation, employee healthcare, and increasing profit.
- Investment in marketing: 56% of business owners responded saying they will invest less than 3% in marketing, while 34% said they plan on investing more than 4%.
- Employees and Staffing: Out of the 38% of respondents that plan on hiring employees, 50% are looking to hire between 1 and 5 people and 46% plan to hire 6 or more.
Do you agree with these predictions? What would you say if you were asked these questions?
It’s important to look at the industry as a whole and understand what business owners like you plan to focus on. Take some time to rethink your 2015 business strategy and hopefully you’ll see some increased growth this year!
For help growing your business in other ways, look to Direct Capital for financing. We work with small businesses like yours every day and we hope to help you finance your next purchase. Contact us today at 866-777-0117 or visit our website for more information!