U.S. Small Businesses are Still Cash Strapped
New data reveals 64 percent believe lack of capital remains biggest obstacle to overcome
The biggest problem facing small business owners today is cash flow, according to a new survey by Regus, the world’s largest provider of flexible workspaces. The survey found the three biggest hurdles keeping U.S. business from moving forward are: cash-flow (64%); finding new customers (51%) and marketing costs (40%).
The lasting effects of the financial crisis are still impacting small businesses, especially with respect to credit. In order to manage cash-flow better, companies need access to affordable and flexible business services, which allow them to scale up or down without financial risk.
As the backbone of the U.S. economy, small businesses are taking innovative steps to stretch their bank accounts and increase their productivity.
Working with a cross-section of businesses, Regus has identified some of the top cost-savings tactics among small business to help overcome those challenges and put them in a better position to succeed:
- Eliminate overhead expenses: Small business owners are moving away from long-term fixed financial agreements in order to minimize risk.
- Pay-as-you-go: From flexible office space, to administrative and marketing support, small business owners are picking and choosing the space and resources that work for their businesses. This allows them to ramp up and ramp down as their business cycles dictate.
- Enter New Markets: Small business owners are using virtual offices (prestigious local business address, call answering service) to have a presence in a new market reaching more customers.
- Build a Network: Working in a shared space environment saves money and gives business owners access to other like-minded professionals and to new business opportunities.
- Leverage technology: From videoconferencing to Skype and from online meetings to audio conferencing, small businesses are reducing their business travel expenses by leveraging the available technology to communicate with clients and remote employees.
About the Survey
The polling is the result of Regus’ latest Business Confidence Index – a bi-annual global survey of 24,000 professionals in 92 countries. The U.S. data is based on the results from 6,000 business professionals.