small businesses then & now

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Small Businesses Then & Now 1

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How are things different for small business owners than they were five years ago, when the economic crisis started to unfold and social media gained a foothold with Facebook? Constant Contact surveyed small businesses to find out. Their answers provide an inside look at their evolving challenges and opportunities…

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Page 1: Small Businesses Then & Now

Small Businesses

Then & Now

1

Page 2: Small Businesses Then & Now

How are things different for small business owners than they

were five years ago, when the economic crisis started to unfold

and social media gained a foothold with Facebook? Constant

Contact surveyed small businesses to find out. Their answers

provide an inside look at their evolving challenges and

opportunities…

Page 3: Small Businesses Then & Now

3

No one said it would be easy.

Harder, 59%

About the same, 30%

Easier, 12%

When asked if they feel it’s easier or harder to run a small business

today than it was five years ago, here’s what they said:

Page 4: Small Businesses Then & Now

“Five years ago I felt like I was in a marathon, but not yet running. We were doing good, but I felt I had hit the wall with market share. I was a little old fashioned, but decided to try using email marketing. Once we mastered that, we started to explore what was next on Facebook and Twitter. Now social media is critical to our success. I’m even teaching bookbinding classes real time via Skype. “ -Michael Chrisman, Bookbinders Workshop

4

Page 5: Small Businesses Then & Now

Why do you think it’s harder to run a business today?

Challenges Abound

5

0%

10%

20%

30%

40%

50%

60%

Economy has hit my business

hard

Harder to keep pace

with technology

More direct competitors

More competition

from big business

Other Harder to attract good employees

Harder to secure loans

55%

49%

40%

34%

19% 19% 18%

Page 6: Small Businesses Then & Now

Yes, 51%

No, 30%

Not sure, 15%

Not locally owned or operated,

4%

Do you feel that being locally owned and operated is a

major reason why your customers support your business

today?

Buy Local

“People want to shop local, they want to eat local. People come to our store specifically looking for Minnesota beers.” -Bryan Buser, The Four Firkins

Some good news - the buy local movement is gaining steam.

6

Page 7: Small Businesses Then & Now

Biggest changes in how you do

business today vs. five years ago

“Business today can’t be scared by

change. Sure, it can be frustrating

sometimes, but businesses really need to

embrace change and find out what’s new

and where technology or best practices

for using tools is going.”

-Seth Tower, GunnDesign

Change is Inevitable

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 84%

59%

27% 26% 22% 21%

16% 11%

1%

Page 8: Small Businesses Then & Now

“We’re using about the

same amount of digital

marketing tools as five

years ago, we’re just using

them differently. Five years

ago we just had Facebook

and Twitter accounts, but

today we’re making a point

to post every day.”

-Bryan Buser, The Four

Firkins

Marketing tools used today vs. five years ago

Social Media Explodes

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

64%

10%

20%

6%

21%

12% 6%

2%

12%

2%

22%

98%

87%

44% 38% 36%

31%

24% 23% 20%

8% 0.50%

5 years ago

Today

Page 9: Small Businesses Then & Now

0%

10%

20%

30%

40%

50%

60%

70%

80%

Finding new customers

Having enough time

Retaining existing customers

78%

61%

49%

75%

65%

58%

5 years ago

Today

Top business concerns five years ago vs. today

Business Concerns

Their primary concerns have remained virtually the same.

9

Page 10: Small Businesses Then & Now

Easier, 30%

Harder, 35%

About the same, 35%

“We’re always concerned about finding

new customers because in our industry

you never know when a current customer

or project will go away. It’s a revolving

door, so we can never stand still and

always need to be pushing forward. As a

result, we’re always looking at ways to

engage with our current customers so

they can tell others about the great work

we’ve done for them.”

Seth Tower, GunnDesign

Do you think it is harder or easier to find

customers today versus five years ago?

Customer Insights

10

Page 11: Small Businesses Then & Now

Why is it harder to find customers today versus five

years ago?

The Customer Dilemma

11

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Customers pay less

attention to marketing

More direct competition

More expensive to do marketing

Can't keep pace with all of the online marketing

tools

None of these

49% 45%

23% 23% 20%

Page 13: Small Businesses Then & Now

0%

10%

20%

30%

40%

50%

60%

More affordable

online marketing tools

Time-saving marketing tools

Customers respond to marketing

None of these Less direct competition

53%

40%

28%

22%

5%

Why is it easier to find customers today versus five

years ago?

Finding Customers with Tech Tools

13

Page 14: Small Businesses Then & Now

14

Page 15: Small Businesses Then & Now

0%

10%

20%

30%

40%

50%

Yes No Not sure

49%

38%

13%

Are your customers spending more money at your

business today than five years ago?

Spending Patterns

15

Page 16: Small Businesses Then & Now

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Not Sure

63%

22% 16%

Do you feel your customers have higher

expectations today than they did five years

ago?

“Customers are more demanding.

They’re seeking fresh marketing

formats and ideas, and they expect

a fast turn-around. Like everyone,

really, customers want more to

maximize their spend.”

-Debra Farrell, Diverse Resources

Customer Demands

16

Page 17: Small Businesses Then & Now

Great Expectations

Why do you feel customers have higher expectations

today than they did five years ago?

17

0%

10%

20%

30%

40%

50%

60%

70%

80%

Expect more value

Expect better customer service

Expect more deals and coupons

Expect better quality

goods/services

Other

71%

48% 44%

42%

14%

Page 18: Small Businesses Then & Now

How has the volume of new customers changed?

Increased, 55% Decreased, 26%

Stayed the same, 19%

More is Better

18

Page 19: Small Businesses Then & Now

0%

10%

20%

30%

40%

50%

60%

Thriving, with more

customers and/or more employees

Holding steady Possibly closed Don't know

58%

26%

8% 7%

Where do you see your business five years from now?

Optimism Reigns

Despite the challenges they face, small businesses

maintain a positive outlook.

19

Page 20: Small Businesses Then & Now

This Constant Contact-sponsored survey was administered in May of 2013 to 917 small business participants in the Constant Contact Small Biz Council – a research panel of US small businesses recruited from the Constant Contact customer base. This survey was fielded to those panel members who have been in a decision-making role in a small business for at least five years, and they were asked their opinions on how operating a small business today differs than five years ago. This survey is part of an ongoing series about the state of small businesses and the ways they connect with, and grow, their audiences. Results include responses from respondents across a range of business-to-business and business-to-consumer industries.

About the Survey