Many small businesses are still struggling with a stagnant economy. Reports being made indicate that it’s the big public companies who are making out with huge profits and outlooks of growth.
It’s the folks on main street that are suffering. They’re having difficulty growing and don’t have a plan to grow.
Here’s an excerpt from The Wall Street Journal…
Many big public companies are likely to report strong second-quarter profits, but that isn’t the story on Main Street, where small businesses are grappling with jittery customers, rising costs and tight credit.
Small business owners are struggling to get enough loans to grow their businesses or hire people, even as they face rising commodity prices, WSJ’s Sarah Needleman reports. (Photo: AP Photo.)
The owners of many small businesses say economic uncertainty and inflationary pressures have led them to delay hiring and capital expenditures. Seventy percent have no plans to expand their staffs over the next 12 months, according to a recent U.S. Bancorp survey of 1,004 U.S. companies with annual revenue of $10 million or less.
While about half projected higher revenue a year from now, 78% said the U.S. economy is still in a recession, and many expected it to remain there next year. In May, for the third month in a row, the optimism index of the National Federation of Independent Business declined.
Source: The Wall Street Journal
In that article it goes on to describe how some small businesses have been able to get lines of credit to continue operations and maintain inventory but the funds were not enough to expand hiring.
While I can understand this situation I firmly believe that many of these businesses are looking over massive opportunities sitting dormant within their company. And they don’t have to spend thousands of dollars to leverage them.
They should be able to start directly with their current customers. Then they can move to past customers who haven’t done business with them in a while. They could even optimize their current marketing to improve their overall ROI.
All these things cost pennies compared to traditional advertising.
Knowing this should put some small business owner’s minds at ease. You see, they talk about taking it slow and not making big jumps and that’s fine because when they realize that they’re sitting on a gold mine of opportunity inside their own business they will see that increased growth doesn’t have to happen because you’ve invested tens of thousands of dollars into advertising. And as they grow they will in turn have the cash flow and ability to begin hiring again.
My other criticism of this WSJ article is that they offer no solutions. They only focus on a negative slant, which does grab eyeballs but never gives a viable solution to the problem. I understand they can’t offer every business one solution in one article but how about talking about the options that are out there.
Stop feeding the negative machine and begin giving hope with an eye to the future for the small business owner’s who are reading this.
Enjoy and prosper,
PS: If you’re one of those small business owners who wants to market through this recession without feeling a punch in the gut then you should consider getting a Profit Leak Audit.