According to a recent survey completed by Truist, small business owners are so focused on short-term challenges that they are forgoing long-term planning. Are you one of them?
Truist’s Small Business Pulse Survey is an annual compilation, and this year’s results show that small business owners are reporting a higher level of stress than in previous years, but they are still showing strong signs of optimism. It’s an important combination for those small businesses that form the backbone of the American economy: the ability to shoulder high levels of stress while still focusing on coming opportunities.
But despite the ability to remain optimistic about the future, many small business owners may be making a bad trade: spending too much time handling short-term at the expense of investing in long-term planning. Consider these findings:
· Only 35% of those responding to the survey reported having a growth plan for their business.
· Of that group, a small percentage (32%) have shared their growth plan with an advisor outside of their business, such as a CPA or lawyer.
· Less than half (42%) of small business owners felt prepared to handle an economic downturn, while a similar number (41%) said they could navigate a natural disaster.
If you’re a small business owner, you know the problem is not simple procrastination or too much daydreaming. Small business owners are prioritizing critical tasks that take extensive time and resources, making difficult choices for their companies:
· Increasing prices
· Reducing spending
· Absorbing lower profitability
· Working to retain quality employees with various efforts:
o Increasing wages
o Adapting to requests for remote work
o Expanding benefits
It would be impossible to argue that these are poor uses of a small business owner’s time. The stress is taking its toll, with 45% of respondents reporting increased anxiety and 30% saying it is affecting their ability to sleep.
At The Power CFO, we are small business owners just like you, and we understand the heightened pressure that can come when inflation, labor shortages and other unexpected economic changes affect your company. That’s why we work with businesses like yours to do some long-term planning that shores up your company against a wide variety of events, both anticipated and unexpected.
Contact us at The Power CFO and let’s talk about how to prepare for natural disasters, economic downturns, but most importantly for the growth of your business.
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