Running a small business can be tough, but it can be very rewarding. There’s no denying that business ownership has its ups and downs. Sometimes, the factors determining those ups and downs are within your control. The way you spend and invest money into your business, for example, can definitely affect your operations. Other times, though, the factors are outside of your control.
Things like tax rate, economy, and demand have a major effect on your business, and you can’t do much about it. Although each small business is different, there is insight to be gained from the different markets and the overall feelings and outlooks of small business owners throughout the United States. This insight can be used as a gauge for various predictions, including what most business owners expect the next quarter to look like.
According to data gathered from indexes and surveys, the collective small business confidence and optimism is the highest it’s been since 1983. Here’s some of the information gathered from those indexes and surveys:
The National Federation of Independent Businesses (NFIB) reported that the index came in at 107.9 in July of 2018, which is the second highest in the history of the survey.
Another survey, conducted quarterly by CNBC and SurveyMonkey, found that 58 percent of small business owners surveyed feel business conditions are good.
With overall business conditions looking good and small business owners feeling confident and optimistic, we’re likely to see some changes as this year continues. For example, as mentioned in one of the surveys, some business owners are planning to increase their full-time staff.
As small business owners work on increasing their staff and bringing on more full-time employees, there will be more jobs available and more growth opportunities for those looking for employment. With more jobs opening up, those with the skills necessary to fill the positions should be able to find meaningful work, benefiting both small businesses and themselves.
When overall business conditions are good, small business owners will spend more money, whether it be to open up more full-time jobs within their organization or to expand their business. This means more money will be going into the economy, which helps stimulate and benefit those in the surrounding community and contributes to the entire country’s economy as well.
Although overall business conditions are good, and small business owners are generally positive and optimistic, it doesn’t mean small businesses won’t face any challenges closing out the year. Starting a business comes with inherent challenges like raising capital, finding resources, hiring the right team, marketing effectively, budgeting, and ensuring you’re compliant with all laws and regulations. Knowing the overall outlook, though, can give you a better idea of when the right time to hire more staff or launch a new project might be.
The information available in the outlook indexes and surveys can be vital for entrepreneurs and small business owners. The overall outlook for small businesses at the moment can help you get a good idea of whether or not now is the right time to make a business decision you’ve been considering.
What does the latest overall small business outlook tell you? Do you think it will continue to go up?
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