A group called Network Solutions recently conducted a survey with the University of Maryland to create the Small Business Success Index
A Peak at The Results
More than 1,000 small business owners were interviewed by phone.
The Small Business Success Index found that small businesses are succeeding despite the economic downturn.
69% of small businesses made a profit in 2008
7% of small businesses report that they broke even
The majority (69%) of those who showed a profit in 2008 said it was equal to or better than the previous year
70% of small businesses expect their firms to still be operating in five years as opposed to being closed, sold or transferred, and of these, 66% expect to be bigger in size
More importantly, entrepreneurs and small businesses can use the Index site to learn which best practices they are succeeding in utilizing, and where they need to improve.
For example, most small business owners think customer service is the most important part of their business, while the research demonstrates that investing in sales and marketing and financial resources are much more important. In essence, small businesses can optimize their performance for maximum success using the index.
Pick up a free copy of the full report here
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Thanks for the report Matt. I agree sales is one of the most important things to invest in. With out a sale you don’t have a customer and thus don’t have a business.
This is such good news…I needed to know this! I’m smiling now…
I think if people would stop watching the doom and gloom also known as the news, people would have a much more positive perspective on the economy. I would say the one true exception is Michigan.
Great post!
@Gerald
You have to invest in sales, which is why biz should not be cutting marketing when the economy is down. No marketing, no sales, no sales, no business. Pretty simple.
Matt
@Jetson2833
It is good news, but I wasn’t surprised by the optimism. Small biz owners by nature tend to be optimistic individuals.
Matt
@Happiness
I have tried to stop watching the general news. I still keep up with certain financial papers I’ve read for years, but even then temper my overall exposure. It’s too easy to fall victim to the “sky is falling” syndrome, believe you are doomed, and then bury your head in the sand. Not productive at all!
Matt
“crunch the numbers” time.
It’s Absolute for customer care to be a priority along with marketing efforts, maintenance and post transactional contact.
I wonder what were the numbers like on the loosing end within the 31%. Big looses? Acquisitions? Closed ventures?
@Agent Luke
All valid questions. I am putting together an interview with the people that did the report. I’ll ask what were the situations for the 31%
Matt
Thanks for mentioning our research and our new site http://www.growsmartbusiness.com we hope that the Small Business Success Index grows into a barometer of small business activity and sentiment.
-Steve
Well small businesses earn their income mostly from local clients – the ones that won’t abandon them because it’s closer/cheaper/easier. The companies that lose the most are the ones that offer expensive goods – people don’t want to buy a new car or house in the times of recession.