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Are Business Owners Looking To Expand?

2012, 2013, and 2014 have all seen businesses looking to expand. 2014 was a good year for that! What will 2015 bring? For today’s post, we look back at the same 2014 report conducted by UPS Connect from a few weeks ago.

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When asked if business owners are looking to expand in 2014, 58% said they plan to grow their business locally, 34% plan to expand their business nationally, 27% have global expansion plans, and 15% have no current expansion plans.

Since the Great Recession in 2009, companies have been able to put the effects of the economic decline behind them. As the economy has improved, business owners are more optimistic about expanding their companies.

How Confident Are Business Owners Going Into The Next Year?

For today’s post, we look back at the same 2014 report conducted by UPS Connect from last week.

When business owners were asked to describe their confidence in their business’ success over the next 12 months, 1 in 4 respondents said they were “extremely confident”. On a scale of 1-7, owners had an average confidence rate of 5.39.  

This is an impressive rating which demonstrates that business owners are leaving the agitation from the past behind and emerging with more confidence.

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When asked what their top priorities were, nearly 80% of respondents reported that it was to increase revenues. Establishing new customer relationships came in at 67%, and increasing profits stood at 60%. 

Growth is the top priority when it comes to what is necessary.

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2014 UPS Connect State of Small Business Report

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UPS Connect conducted a 2014 report for the state of small businesses interviewing more than 300 founders, partners, presidents, and CEOs. With this report, they delivered a list of questions and answers. When asked what are the biggest challenges business owners are currently facing, companies replied with:

1) “Reducing cost of financing.”

2) “Government compliance and interference.”

3) “Funding and/or credit lines allowing my business to grow.”

4)  “The cost of customer acquisition…declining volume per current customer.”

Although owners maintain an optimistic approach in the short term, they are still faced with obstacles from general concerns, costumer acquisition, financial problems, and increased competition.

 

When business owners were asked about their biggest pain points:

49% of respondents said they “aim for a healthy balance between [their] professional and personal life””; 31% said they prioritize professional over personal.

49% admit they “don’t have the time or expertise to figure everything out.”

37% feel as if they “manage [their] time efficiently”; 23% said they have difficulty managing all the moving parts of their business.

 

This is some fascinating data to consider within the context of your own small business.