As we began searching the Internet for the most intriguing small business trend predictions for 2015, one by SmallBizTrends.com definitely caught our eye. According to a CAN Capital Small Business Health Index survey, 58% of small business owners expect growth in 2015.
The article shares helpful steps for growth – and challenges that you may face, including competing against larger businesses, offering competitive benefits to employees and other rising employment costs.
Then, more statistics are shared, including that:
- 41% of respondents say they will need an infusion of cash to run their businesses in 2015
- 61% say that getting that capital is challenging
- Only 34% feel that a bank (traditional funding) is the easiest option
After reading these statistics, the trend highlighted by Forbes for small businesses in 2015 makes perfect sense: alternative capital flows will gain traction.
The Forbes article shares how the traditional lending market isn’t growing enough to support all of the small businesses that need cash to grow – and we know that’s true, hearing plenty of stories from small business owners who have opportunities to expand but can’t get enough cash freed up to take advantage of those opportunities. Or from those who have a particular problem to solve (such as tax challenges) before they can capitalize on growth.
If you fall into one of these categories, we look forward to hearing from you in 2015.
Meanwhile, here are a few other financial predictions that might affect your small business in the upcoming days.
According to USA Today data, more than 50% of U.S. cities have populations that are primarily non-white. Hispanics alone make up 17% of the U.S. population with purchasing power of $1 trillion-plus – and that figure is expected to grow.
How do you need to tailor your products, services and/or marketing to reach new audiences? What one-time costs might be involved to engage with new demographics? Ongoing costs?
Independent workforce strategy
How can you use freelancers / independent contractors to use your financial resources more strategically? Small Business Labs is predicting a rise in the use of the independent workforce in 2015. If you have short-term work overflow – or aren’t yet sure how long the overflow will exist – using qualified freelancers makes perfect sense. If you decide to go this route, it’s crucial that you abide by IRS guidelines, treating freelancers as independent contractors, not as employees.
Also budget for social responsibility
We applaud the first trend listed by Staples in their post, New Year’s Predictions: 6 Trends That Will Impact Small Businesses in 2015. If you’re not sold on the idea, note that a survey taken in August 2014 showed that 84% of respondents stated they were willing to pay more for a product or service from a company that they felt was socially responsible.
The article lists the small business impact for each of the trends and here is their commentary for social responsibility: “Being a company that ‘does good’ for its employees, customers and community is a smart and effective focal point . . . I think that in this era of social media, a company that is solely a bottom-line entity will lose good employees, good customers and goodwill. While some of the ‘too big to fail’ companies may withstand this type of negative public opinion for some time, small businesses do not have the reserves to pivot and rebuild their reputations.”
What questions do you have about cash flow? How can we help you meet your cash flow needs so that you can grow your business in 2015? Contact us today.