the small business infographic
DESCRIPTION
It’s a tough landscape out there for small business owners. They’ve got a whole host of challenges to overcome and some many tasks to do that it might seem as if they’ll never get the opportunity for a full night’s sleep again. It’s not all bad news, though. When it comes to money, small business owners have some struggles, but they also have tools to help them figure out the finances. It’s difficult to manage cash flow where your clients aren’t paying their invoices promptly. On the other hand, keeping tabs on the bank account is much easier with online banking—a tool that more than 70 percent of small business owners use. Entrepreneurs have lots of options when it comes to financial advice. While most seek the advice of an accountant or financial advisor, many network with other small business owners for help. The Internet provides a fast way to get a lot of information, too—42 percent of small business owners get online for financial advice. Small businesses are looking forward to hiring—31 percent stated they’d be interviewing candidates during the next 12 months. Finding good people is a challenge, though. The number one concern of small business owners is finding employees who have the skills they need to do the job. Training new people is not cheap. Costs average over $1,000 and it takes at least 40 hours to properly train an employee. And not all those employees are stellar. Some report stealing, cheating, and using or selling drugs. When it comes to marketing, small business owners are ready to ramp it up—a full 47 percent will increase their marketing budget over the next 12 months. How should they spend their money? Studies suggest that they should add more signage, such as custom banners and yard signs—64 percent of customers reported that they couldn’t find a business due to its unclear or small signage.TRANSCRIPT
THE SMALL BUSINESS LANDSCAPE:PITFALLS, PLANS & PERSPECTIVES
Small businesses make up 80% of the total number of businesses in the U.S. today. And for their owners, today’s economic environment presents a unique set of challenges and opportunities to build their business. Here we explore some of the pitfalls, plans and perspectives of current business owners to get an idea of how they succeed.
FINANCES
45%26% 9%Not getting paid on time by clients and customers
Low profits and lack of business
Not getting out invoices in a timely fashion
WHERE DO YOU GO FOR FINANCIAL ADVICE?
An accountant/bookkeeper
A financial advisor
Other small business owners
Family/friends
A banker
Online
A lawyer
Nationally recognized expert
Local non-profit or government organization such as the SBA
GETTING FINANCIAL ADVICE: 73% of small business owners say they need the occasional financial advice or support
GETTING PAID:72% of small business owners use online banking to help keep them organized.
40% make direct payments to help manage cash flow.
When asked their biggest challenge in managing cash flow, small business owners cited:
20% CONVENIENTLOCATION
18%17%
RELATIONSHIPREWARDS
ACESS TO LOCAL EXPERTISE
GETTING AND USING CREDIT:78% of small business owners who applied for a business loan during the last two years were approved.
72% of small business owners look to their bankers for advice about the benefits of an SBA loan or how to manage payroll
I have it, but I only use it in an emergency
I am trying to pay down my balance so I have a portionavailable to use.
It is the primary source of cash flow for my business
It is maxed out
Don’t knowYes
No
Don’t know
If you applied for a business loan within the last two or more years, were you approved?
Which of the above best describes how you use/manage your line of credit?
HUMAN RESOURCESHIRING: 31% OF SMALL BUSINESSES PLAN TO
HIRE NEW EMPLOYEES WITHIN THE NEXT 12 MONTHS.
What is the number one challenge you face as you look to retain top talent?
Finding employees with the skills required for your business
Providing competitive salaries
Finding employees with a good work ethic
Providing competitive health care and retirement benefits
Providing the extra perks of lerger companies, such as a bonus,
flexible hours, child care
RISKY EMPLOYEES: A 2011 survey conducted by Hayes International showed that:
I have frequently associated with fellow employees who admitted they were stealing merchandise from the company. 18.4% 5.4%I am not an honest person and might steal or cheat. 9.3% 1.7%I could be tempted to steal from my employer. 26.7% 7.8%I might help friends steal from my company. 14.6% 1.3%I have stolen money within the past 3 years. 17.5% 5.2%I have stolen merchandise within the past 3 years. 15.9% 4.5%I would possibly use marijuana/illegal drugs in the future. 23.1% 6.5%I have previously sold marijuana or other illegal drugs. 4.3% 0.9%
HIGH RISK LOW RISK
Various items on the Applicant Review ques-tionnaire and the percent of high and low risk applicants admitting to each.
TRAINING:AVERAGE TRAINING EXPENDITURES PER LEARNER
$1,041AVERAGE HOURS OF TRAINING PER EMPLOYEE
40.1 HRSBENEFITS:
MARKETING
of business owners surveyed reported that they plan to amp up their marketing efforts over the next 12 months.
EFFECTIVE MARKETING TECHNIQUES:WORD OF MOUTH & CUSTOMER REFERRALS
NETWORKING WITH OTHER SMALL BUSINESS OWNERS
DIRECT MAIL OR E-MAIL
ADVERTISING - PRINT, BROADCAST, RADIO, ETC.
SOCAIL MEDIA
84%55%
46%43%42%
SIGNAGE:of customers report that they have failed to find a store due to small or unclear signage.
% of woman who have driven by or failed to find a business due to small or unclear signage
SOCIAL MEDIA:of small buisness report that they plan to increase social media marketing over the next 12 months.
WEBSITES AND TRAFFIC:
Consumers find local businesses through:
38%17%3% SOCAIL
MEDIA
SEARCH ENGINES
SPECIALTY WEBSITES
SOURCEShttp://www.thesignagefoundation.org/LinkClick.aspx?fileticket=5slQpadZY5o%3d&tabid=59&mid=485
http://mediaroom.bankofamerica.com/phoenix.zhtml?c=234503&p=mediaMention&id=467320
http://hayesinternational.com/news/annual-retail-theft-survey/
100,000 Shoppers Can’t Be Wrong: Signage Communication Evidence from The Brand Spark/Better Homes and Gardens American Shopper Survey. James Kellaris, Ph.D. University of Cincinnati. The National Signage Research & Education Conference 2001.
50%
19%
7% 1%
78%18%
4%
How effective do you find these techniques in marketing your business?
23%
OF SMALL BUSINESS OWNERS POLLED OFFER A FINANCIAL BENEFITS PACKAGE. 31% OFFER A 401(K) PLAN
CHOOSING A BANKMOST IMPORTANT FACTORS
74%
68%
65%
58%
49%
42%
42%
29%
26%