PALO ALTO, Ca. (October 23, 2008) - PayCycle, Inc., America’s #1 online payroll service, today released the results of a proprietary survey that found 58% of small business owners do not feel the government is addressing their needs. Sixty-nine percent (69%) say they are not directly impacted by the credit squeeze because they don’t need more credit, but 91% are still worried about the economy.
When it comes to economic recovery, nearly 3 out of 4 (74%) of small business owners believe the recovery will take 18 months or longer; 19% per cent believe a recovery could happen within 12 months and only 8% believe a recovery is six months away.
Fourteen percent (14%) indicate they are postponing investment and 8 percent (8%) are postponing hiring plans because they can’t get a loan. Nine percent (9%) indicated they may need to close their businesses due to lack of credit.
“It’s not primarily the credit squeeze that is worrying small business; the clear majority of them don’t need more credit. What they are most worried about is losing customers as consumer spending contracts,” said Jim Heeger, president and CEO of PayCycle. “”And, it’s clear that small business owners are hunkering down for a slow recovery that they believe will last well into 2010.”
Small Business Owners Share Survival Tactics
The survey found that small business owners are using a variety of tactics to survive the economic crisis. Some are laying off employees or turning to contract labor to save costs, some are offering new services or special discounts, many are delaying equipment purchases, and most are shaving costs from various operational line items and personal expenses.
Here’s what PayCycle customers have to say:
“I have cut back on everything that is unnecessary. Drive less, buy less. Question myself on every item. Do I really need that? Change phone services, cut cable packages, cut back on contributions to SEP and IRA, cut back on overpaying mortgage, change health insurance options, change car insurance options, keep the house warmer, have kid’s party at a park instead of a fancy facility,” said Lee-Anne Steinhardt, owner of TransRX in Florida.
“I have moved to a less expensive location and my husband and I have had to come out of retirement and return to work. We also had to cut our payroll, including laying off my own daughter, a single mother. I am almost 60 and my husband is soon to be 65 and a heart attack survivor. You do what you have to do to get through these tough times”, commented Kathy Braatz, co-owner of KC’s Drivers School in Wisconsin.
“We are robbing Peter to pay Paul like everyone else. Pay advances are non-existent, benefits are gone and purchasing is limited to what’s absolutely necessary. We’re taking care of each other and hanging on to what we possess the best we can,” said Lynn Vosburgh of Vivid Ink, in Michigan.
The survey, conducted between October 17 and October 21, 2008, compiled responses from 215 small businesses randomly selected from PayCycle’s broad, national base of over 75,000 small business customers.
PayCycle is America’s #1 online payroll service, serving more than 75,000 small businesses. PayCycle provides an easy-to-use, innovative, efficient service for small businesses, backed by outstanding customer support. PayCycle also powers payroll services for leading financial institutions including Capital One and PNC Bank, and provides client payroll services through many of the nation’s accounting professionals. PayCycle’s service integrates with leading accounting programs such as QuickBooks®, Quicken®, Peachtree® and Microsoft® Money. PayCycle’s unique “Do-It-With-YouSM” (DIWYSM) technology platform guides customers through the entire payroll process from paycheck to W-2 forms. PayCycle also holds PC Magazine’s highest editorial honor for small business payroll, the PC Magazine Editors’ Choice Award. Visit www.paycycle.com for a free trial of the service.