Small Biz Outlook 2023

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Small Business Expo in Cincinnati is in the rear view mirror, but those who attended were determined to make this a healthy business year, in spite of recent dark clouds. There’s one thing small business does well —we’re nimble and very bullish about our businesses.

Since 1973, the National Federation of Independent Business (NFIB) has tracked and recorded Small Business Economic trends via questionnaires mailed to their members. We thought it would be helpful to share a few of the numbers.

Of note for 2023 is their Small Business Optimism Index that shows an overall Index of 89, after their 49-year average of 98. The reason for the dark clouds? Inflation!

Stressed businessman looking at laptop screen in modern office.

While the survey tracks labor markets, capital spending, sales and inventories, compensation and earnings, borrowing and credit markets, inflation was what hit small business owners the hardest. 

This Inflation information should be informative for our readers to measure their performance compared to the rest of the small business world:

The net percent of owners raising average selling prices decreased 4 points from March to a net 33% seasonally adjusted, the lowest since March 2021. Unadjusted, 12% (up 1 point) reported lower average selling prices and 48% (down 2 points) reported higher average prices. 

Price hikes were most frequent in construction (59% higher, 7% lower), retail (59% higher, 8% lower), wholesale (54% higher, 14% lower), and finance (52% higher, 5% lower). 

A net 21% of small business owners plan price hikes (down 5%).

Consumer spending increased, but consumers were purchasing product from inventory made in prior quarters. Those small bank failures that made the news were not due to bad loans but to poor risk management! Even as the Government was pouring massive Covid relief into the economy, banks allowed those deposits to be withdrawn in 24 hours.

For those who enjoy tracking where your small business stands compared to other small businesses, read the entire report (Copyright NFIB Research Center publication: NFIB Small Business Economic Trends, April 2023).

Keys to Successful Workplaces

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If your business never faces challenges, congratulations. The rest of us entrepreneurial congratulate you! But if challenges are a way of life in your small business, we want to share a few ideas from the “pros who know.”

Embrace Growthkey to success: key bridging a chasm
Modern business challenges rely on a growth mindset. This doesn’t mean hiring more employees! It means adopting a growth mindset that views obstacles as opportunities for learning and growth, like these:

  • Maintain a positive attitude. 
  • Focus on the solutions rather than problems. 
  • Think of setbacks as temporary and necessary steps towards growth.

Always Be Learning
View challenges as opportunities to gain knowledge and experience. Embrace continuous learning and always be seeking new skills and insights to overcome obstacles.

Set Goals and Milestones
When times get tough, the tough set goals that are SMART goals. SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. SMART goals are essential for small business. As circumstances change, your goals may need to be modified to remain relevant and achievable.

Track Progress
To stay motivated, monitor your progress regularly. Keep a record of achievements and take time to reflect on how far you’ve come and to reinforce your determination to overcome challenges.

Visualize Success
Imagine yourself overcoming the challenges and achieving your goals. Visualizing your desired outcome vividly serves as a source of motivation during difficult times.

Seek Inspiration
Read books, listen to podcasts, or watch interviews that showcase other small business owners’ keys to success. 

Celebrate Accomplishments
No matter how small they may seem, acknowledge every milestone you reach and reward yourself in some suitable way. This will keep you motivated and reinforce a positive mindset.

Build a Support Network
Surround yourself with the right people and mentors that can make a significant difference when tackling business challenges. 

Collaborate and Network
Engage with like-minded individuals in your industry. Join a Chamber of Commerce, a MasterMind group, networking groups, online forums, or a Business Roundtable near you. Sharing experiences, challenges, and successes can provide a fresh perspective and keep you motivated.

Remember, adopting a growth mindset, setting clear goals, building a support network, and prioritizing self-care are key to rising above any obstacles you encounter. You’ve got this!

The Rise of the Remote Worker

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As 2020 rolled around, rumors that people in Wuhan, China were getting sick and dying from some sort of new infectious disease was spreading as fast as the virus itself. Before the worldwide pandemic began to fizzle, almost 107 million Americans had contracted Covid-19 and and 1.2 million, sadly, lost their lives. 

The American workforce also lost something…the will to commute to the office. According to one economist, even though the pandemic is officially over the USA, ¼ of workers have no desire to continue working remotely from home. Period. They want the tools and teamwork, are better able to focus on work without the distractions of home life, and really love being in-person. 

This is good news for the bosses and owners who understand that workplace dynamics encourage socialization and community building, which in turn builds better teams and produces higher output. Plus there are the considerations of the investment in millions of square feet of office space in downtowns and office centers in places like Cincinnati, and the complication of measuring productivity and ROI of remote workers.

Small businesses, like those we service, for the most part, have returned to pre-pandemic work routines earlier than the large corporations. The New York Times reported that in March of 2023, 12 percent of U.S. workers were still fully remote, about 60 percent were fully in office, and 28 percent were in a hybrid custom arrangement.

Remote workers are especially valuable in technology, marketing, accounting/finance, project management, medical/health, recruiting, and customer service. If you or someone you know is looking for a “remote worker” position in the Cincinnati area, check out Built In, the online community for startups and tech companies.