The future of small business, even with concerns about a recession, remains bright for entrepreneurs. In Capital One’s latest Small Business Growth Index (Fall 2019), 64% of business owners surveyed say that their current business conditions are good or excellent. Additionally, compared to six months ago, small business optimism increased five percentage points, and recession concerns decreased six percentage points.
Feeling slightly less concerned about a recession, however, doesn’t mean business owners exist in a recession-free bubble. If the economy entered a recession in the next six months, 85% of small business owners say it would impact their business. The impact, for 65% of business owners surveyed say they “would be more conservative with inventory and supply management.” Regarding cash flow, while 61% say a recession “would negatively impact cash flow,” 74% of business owners “feel prepared for a recession from a cash flow perspective.”
As I reviewed the Small Business Growth Index, I found myself pleased to see so much positivity. As a business owner, I know that being in business has its ups and downs. Entrepreneurship is risky. It takes guts to make this kind of leap forward. Entrepreneurs may work hard and are passionate about what they do, but they still don’t know what might happen tomorrow.
The future may consist of the great unknown, but small business optimism does continue to grow. Best of all, this optimistic outlook shows no signs of stopping. What can small business owners do to contribute to that growth and optimism? Let’s take a look at simple ways entrepreneurs can strengthen small business optimism.
1. Surround yourself with a great team and emphasize outstanding company culture
A great team can make all the difference when you own and operate a small business. These team members will work hard to contribute to the success of the company. They believe in your mission and want to help you reach your goals.
As a business owner, I am excited to come to work every day because of my employees. I feel lucky to be surrounded by talented individuals, and grateful that they love what they do and feel part of the team.
Hiring and retaining great employees is a process that is easier said than done, though. You may want to hire talented employees, but you also need to look beyond skill sets. You need to consider new hires who have positive attitudes and want to grow within the business.
In order to for your business to be successful, you must surround yourself with a great team and create an incredible company culture. The Small Business Growth Index notes that 33% of business owners believe company culture has a major impact on their business’s success. To that end, two-thirds of business owners surveyed (69%) are making company culture a massive draw for talent. As part of their hiring and retention strategy, 31% of business owners say they are marketing their companies as a great place to work and thrive.
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2. Give back to the community with mission-driven initiatives
Sometimes all a small business has to do is look in their own backyard for customers and fans. Think about nationwide events like Small Business Saturday. These events are designed to increase small business awareness across communities. It’s a win-win all around—entrepreneurs introduce themselves to the community, meet new customers and make new sales, and build positive word of mouth in the area.
The Small Business Growth Index notes that being active in the community helps build up small business optimism. While only a third of business owners have a community-impact initiative, 73% report having one helps boost the public’s perception of their company; others say it helps draw in more customers and business. Still other entrepreneurs reveal that giving back actually helps keep them motivated and optimistic as business owners.
It’s worth looking into ways your business can establish an initiative of its own to give back to the community. And the benefits of giving back are practically endless.
3. Look ahead and prepare accordingly
As I mentioned earlier, 74% of business owners feel prepared with their cash flow when faced with a potential recession. The possible negative impact of a recession is allowing business owners to reexamine their businesses. They may find themselves reviewing and editing business plans, paying more attention to their overall ROI, and cutting unnecessary costs where possible.
This kind of preparation is savvy for businesses to undertake now. It allows entrepreneurs to maintain their current positive business conditions and quietly prepare for worst-case scenarios. If business owners address their recession concerns now, they may still keep growing their companies without losing optimism about the future ahead.
RELATED: Does Your Business Have a Strategic Plan?
The post Small Business Optimism Is Growing—Here’s How Your Business Can Contribute appeared first on AllBusiness.com
The post Small Business Optimism Is Growing—Here’s How Your Business Can Contribute appeared first on AllBusiness.com. Click for more information about Deborah Sweeney.
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