It is no secret that the confidence small business owners have in their companies and the current state of the economy will influence how they plan to operate their organizations in the upcoming months. Entrepreneurs seeking business startup advice can look at how successful small business owners ran their firms throughout this time.
According to a survey
commissioned on behalf of local media company Local Corporation, 92 percent of small-business owners report that their financial decisions are influenced by the economy.
“Small business is a major growth engine for our economy,” said Heath Clarke, chairman and CEO at Local Corporation. “We can interpret from these results that when small business owners are not confident about the economy, they look more closely at their expenditures and where they’re getting the most value for their money.”
How are small-business owners navigating through these times?
Small-business owners’ confidence appears to be dwindling. The results of the survey show they are planning to participate in cost-cutting ventures. Forty percent of respondents said they have considered reducing their marketing spend, while 24 percent said they may even have to reduce their number of staff members.
Small-business owners looking toward using digital media
One way business owners are hoping to improve the state of their companies is by investing in digital marketing, with 63 percent of respondents saying they would do so, while 30 percent are planning to increase their digital marketing spending next year.
“Based on digital media growth projections, small businesses clearly see the value in moving their dollars from traditional to digital media, which is why we’ve focused our development efforts in this area,” said Clarke.
Improving online marketing is another point of contention for small business owners throughout the United States. Thirty-seven percent said they are willing to make a long-term investment in online advertising and 26 percent have struggled with client relationship management over the past year.
“Consumers are online, so businesses, even small businesses, should also be online. Seemingly basic efforts like creating a website or using targeted ad buys make a world of difference for a small businesses – giving themselves the ability to be found online is half the battle,” Clarke told Street Fight Magazine.