“Everything that is done in the world is done by hope.” Martin Luther said it back in the 16th century and it has never been truer than it is in 2013, especially when it comes to small business. CEOs of small enterprises are some of the most hopeful people around, building a business – often from the ground up – on a vision and a confidence in the future.
However the economic events in the US over the past decade have been enough to shake up even the most sanguine of businesspeople. Securities and real estate, formerly considered two of the most reliable investments, suddenly lost their value overnight. Confusion is the key word today: where is the economy going? What’s the best area of your business to invest in?
Small is the New Big
There’s been a sea change in attitudes to technology since the close of the 20th century. Back in the day, big was … well, big, and technology tended to equate big with powerful and efficient. Investing large sums in the latest and greatest computer programs and IT staff was considered essential if not to succeed, at least to give the appearance of success. However, nowadays it’s all about small and convenient, especially when it comes to small businesses that have neither the resources nor the inclination to invest heavily in technology which could already be outdated by the time it is delivered to your door. This attitude is readily apparent when it comes to areas like information technology. Savvy small businesses are moving to SaaS, for example, to avoid investing in the accoutrements of big technology.
Get Healthy
With the implementation of Obamacare looming in 2015, the subject of mandatory health care has been big among business owners across the board. While owners of businesses which employ fewer than 50 full time workers are exempt – at least for the time being – they may find that de facto they will be forced, or at least strongly encouraged, to provide employee health care benefits simply to attract new hires who would otherwise be tempted to accept employment at larger firms that do offer health care. And a business that expands (the hope – that word again! – of most entrepreneurs) will need to provide health care once it exceeds the employee limit. With affordable Small Business Health Options Programs and small business tax credits to help cover health insurance premiums, this might just be a worthwhile area to invest in. And how about purchasing coverage to protect one of your business’s greatest assets – you, the boss – while you’re at it?
Get Smart
Another excellent arena for investment is professional guidance. According to American Banker in May 2013, only 30% of small business owners feel “very confident in their business acumen.” Expert guidance from a management consultant, banker, accountant or other professional can steer a business in the right direction and do more for the bottom line than randomly investing in the physical plant based on guesswork. An optimistic business owner is an asset to his or her enterprise; an optimistic business owner guided by a topnotch financial adviser is a tremendous asset.