UpSwell Marketing, a direct response marketing agency focused on helping small businesses grow and achieve long-term success, today released the results of their annual small business sentiment survey. Although inflation is looming over individuals and businesses alike, business owners are optimistic about future opportunities for growth.
The survey found that 90% of business owners expect their revenue to be better or remain the same as the previous year. Over 66% plan to see profitability rise in 2023, an even better outlook than the previous year.
Although it’s a promising year, inflation still remains the number one concern (47.69%), as it affects all aspects of business financials — material costs, vendor expenses, labor compensation. As businesses have adapted over the last year, concerns with supply chain disruptions have dropped from 23.65% in 2022 to 8.19% in 2023. However, those concerns are being replaced by a new financial challenge. The biggest concern of nearly a third of all respondents (29.72%) is reduced consumer spending as we enter a period where household budgets are being constrained.
According to the survey, 73% of businesses experienced increased operating costs last year, and 68% of those businesses cushioned the increased expense by passing some or all of the cost to the consumer. The survey revealed the same expectations for the upcoming year, with many business owners planning to pass the costs or cost savings on to consumers to keep up with inflation and remain profitable.
The biggest distinguishing factor affecting businesses today is the lack of cash flow and capital. Although increasing gains in revenue look promising for many businesses, 35.29% of respondents claim this as the biggest operating burden — an 8-point increase from last year. The previous year’s primary concern comes in second, with 22.1% feeling more pressure from the burden of recruiting and retaining employees.
“Businesses must be ready to adapt to the…
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