PNC Bank is reporting results from a survey of small business owners. Here’s a summary:
- Sales are weak, and 18% are optimistic about the next 6 months, while 24% are pessimistic.
- Only 20% of small business owners plan to hire over the next six months.
- But about one-third plan to raise prices, and
- 40% expect sales to increase , 29% expect profits to increase, and 61% plan some capital spending.
A cursory glance at the way PNC reports their own results would lead you to believe that small business owners are in the doldrums. In fact, a deeper look reveals that there is little consensus over the direction of the economy. Pessimism and optimism are roughly in balance but the vast majority of business owners simply don’t know what to expect.
And here is something else that is interesting: The level of optimism seems too low given the expectation of increases in sales, profit and capital spending, but the level of pessimism and the expectation of hiring people do correlate with each other.
So, even though no one knows what the future of the economy might bring, your peers are still planning for success. They just want to do it without committing to hiring more people.
You could be creating more wealth from your business right now. Here are just a few ways you should consider:
- Acquire or merge with a competitor, supplier or customer.
- Expand your markets. Almost every business should have customers in the private sector, the public sector, and the international sector.
- Improve your property to make it more valuable, and by property we mean not only real property but also your intellectual property.
How are you planning to use your company to generate more wealth? Don’t let the excuses of “But the economy is terrible” or “But I don’t know how to begin” keep you from building your business to its fullest potential. Seek the help of trusted advisors to guide you along the way.
If you agree that Personal Legal Counsel could help you create more wealth, please contact Argent Place Advisors to have an exploratory conversation.
© 2011 Argent Place Advisors, LLC