According to a December survey by The Wall Street Journal and Visage international, approximately one-third of small business owners say that economic uncertainty will continue to be the single largest obstacle to long-term growth for their companies in 2013.
The online survey of almost 1,000 small business owners representing a range of industries, all with less than $20 million in annual revenue, also revealed other challenges on the minds of these small business CEOs for the coming year:
Rising taxes. Most small business owners claim business profits on their personal returns, so the rise in the top tax rate for individuals with income over $400,000 to 39.6% could mean an extra tax bite this year. Some small business owners say they are already exploring ways to lower taxable income, with strategies like maximizing contributions to retirement funds and matching employee contributions to 401(k) plans.
Healthcare. The Obamacare law passed in 2010 will require employers with more than 50 workers to offer health insurance by 2014. Small business owners who fall into this category expect their labor costs to rise and are still awaiting guidance on what they need to do to meet the minimal requirements under the new law. Only 14% of those surveyed said they had a “clear understanding” of the new healthcare law.
Access to capital. Although the Federal Deposit Insurance Corporation has reported that commercial loans are on the rise, many small business owners are still struggling to gain access to capital for expansion. Some small business owners note they are turning to alternative forms of borrowing, including asset-based lending, to fund growth. While the JOBS Act passed last April will allow small firms and startups to raise capital via crowdfunding, the Securities and Exchange Commission has still not issued guidelines on the new law.
Hawkes Law Group P.C. was birthed during economic uncertainty, and is still forging ahead relentlessly. The article above is being shared for informational purposes, but more importantly for the purpose of showing you how NOT to think as you’re growing a business. If you focus on obstacles, you’ll get obstacles. If you focus on hardship, your journey will be hard. If you focus on what the government is doing…well good luck with that one. We challenge you to instead focus on your dreams, and the action steps necessary to make your dreams a reality. When you focus on your next step, you’re perfectly positioned for growth. Yes…you can take that statement to the bank!
Got big dreams, but don’t know where to start? The time has never been better for small business owners to schedule a comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Action Session. Simply complete the form, and return it to info(at)hawkeslawgroup.com. Our Client Services Director will contact you within 24-48 hours to schedule your LIFT Foundation Action Session. Normally, this session is $1,250, but if you subscribe to our mailing list with your first name, email address, mailing address, and mobile number, we will waive that fee.