The latest news from Citigroup – which conducts a quarterly small-business poll to gauge how companies are navigating the unpredictable economic times – offers surprising results. The majority of business owners surveyed are all-but expecting another plummet in the economy – and as such, about three-fourths of them are, to some extent, ready for it.
It’s theorized that the recession atmosphere of the last couple years prompted owners to become more cautious in how they run their businesses. Nearly two-thirds of respondents reported that they way they run their companies has been permanently adjusted, thanks to the hardships. Only 4 percent indicated they’d consider going back to their old ways. Samples of wise business decisions that have been implemented include putting a freeze on staffing, cutting down debt, and operating lean instead of pursuing plans for growth.
Unfortunately, the number of small-business owners reporting they are in a better position as compared to one year ago is less than 30 percent. In fact, more than three-fourths of respondents classify the present economic climate as poor or only fair. The upside is these entrepreneurs were more prepared to deal with the hard times.
Citibank officials are optimistic that the owners who learn to navigate the tough business landscape will be poised for growth when things ease up. Not many survey participants acknowledged having a service or product that was immune to the economy. Rather, credit for surviving the recession was given to proper money management and longstanding customer connections. Tactics for continued success in the coming months include maximizing resources (especially in light of continued halts in staffing), boosting advertising and personally putting in more hours.
The majority of owners surveyed love their work and would pursue the same business venture even if they had known of the impending economic crisis.
Source:
FOX Business: Most Small Business Owners Are Worried About a Double-Dip Recession
