Small Businesses: Stockpile Cash or Invest in the Business?
As some folks worry about a potential double-dip recession, small business owners face an inflection point: Is it time to pump more money back into the business? Or should entrepreneurs stockpile cash? The second-annual Brother Small Business Survey offers some intriguing insights.
For starters, there’s split down the middle in how small-business owners plan to handle their business finances. Nearly 50 percent of small-business owners plan to invest more money in their business during the rest of 2011. On the other end, 51 percent of owners plan to stockpile cash in case their businesses hit rough times.
MSPmentor’s conclusion: By their very nature, entrepreneurs tend to be upbeat about their business prospects. So big plans to stockpile cash suggests that there are growing SMB concerns about the economy, MSPmentor believes.
Still, there clear opportunities for MSPs moving forward. About one-third (30 percent) of small-business owners value time over money. They said they are looking for ways to use their time more efficiently and would rather have more time to work and grow their business than more money to spend. For MSPs, the trick is finding those 30 percent of small business owners who value time over money, and helping them to automate operations.
Also, 67 percent of small-business owners said they want to become more organized, which ties into using their time more efficiently. Of course, technology can’t offer a magic bullet solution that makes all entrepreneurs more efficient and organized. But it sounds like it’s time for MSPs to more effectively promote business automation, content management and scheduling solutions.
The Small Business Survey was conducted by Brother International Corporation — a supplier of multi-function center machines a printers. In all, over 500 small-business owners throughout the U.S. were polled by phone.
Additional insights from Joe Panettieri.