What are you planning for your business in 2014? If you’re like the majority of small business owners, growth is on your mind. According to the recently released 2014 Pepperdine Private Capital Markets Project (PPCMP) Survey, 87 percent of privately held companies with sales under $5 million have growth strategies planned for 2014.
In addition to being optimistic about their own growth plans, most business owners are optimistic about the nation’s overall economic outlook. Nearly two-thirds (65 percent) believe growth opportunities for business will increase over the next 12 months, and more than one-third (35 percent) think general business conditions will improve in 2014.
But while small businesses are eager to grow, those with sales under $5 million have fewer resources in terms of people and money to do so. Just 46 percent say have the resources they need to execute their growth plans, compared to 66 percent of businesses with sales over $5 million. Perhaps that’s one reason why more than half of the businesses surveyed (53 percent) plan to hire additional workers in the next 12 months.
What skills and experience are business owners looking for in their new employees? The biggest need is for sales and marketing skills (57 percent of entrepreneurs are seeking these) followed by skilled labor (45 percent) and customer service (36 percent).
Of course, there are still plenty of businesses not planning to hire. Among these, 51 percent say “economic uncertainty” is the number-one reason they’re holding back.
Small business owners also seem to be holding back from seeking financing. Of those who sought financing in the past year, nearly half (47 percent) wanted less than $100,000 in capital and they primarily looked for bank loans, followed by grants and credit unions. The success rate of those seeking bank loans was respectable, with 69 percent obtaining the capital they needed after approaching an average of 2.4 financing sources.
Is a lack of capital or staff holding you back from achieving your business goals? Putting your dreams on hold isn’t the only choice. Here are some options to consider:
If you’ve got growth plans for your business this year that you can’t achieve with your current level of capital, now is the time to seek the financing you need to achieve your goals. Your SCORE mentor can help you get your financials in order, complete your paperwork and find the best places to apply for loans. Or, if a loan isn’t right for your business, SCORE can help you determine the right source of financing to fit your needs.
Visit www.score.org to get matched with a mentor and get a head start on your business goals for 2014.