More than three-quarters of business leaders believe their business will be equally or more profitable in 2020. 55% of executives said they think their business will definitely be more profitable in the forthcoming year compared to 2019.
2020 Small Business Expectations
Advisory and accounting firm EisnerAmper LLP compiled this research. They surveyed around 940 business owners. These included C-suiters, family office executives and high net worth individuals at the annual EisnerAmper Business Summit Series. The event took place in New York in November.
Around 40% of the Summit attendees hailed from the financial and professional services. And 76% of participants said they feel confident their business will be “just as” or “even more” profitable in 2020 compared to 2019.
Just 9% think they will be less profitable in 2020. But also, more than half of respondents fear an economic slowdown.
For small businesses, the findings of the report present a positive business outlook for the new year. And businesses should remain bullish as they head into 2020. Meanwhile, they need to be proactive in the quest to become more profitable.
However, the report also shows the importance of being mindful of a potential economic slowdown in 2020 and to have strategies in place to prepare for a slower economy. These strategies might include cutting business costs and having a sound financial plan in place.
More from the Company about the Report
In a press statement about the report, EisnerAmper’s CEO Charles Weinstein spoke about the generally optimistic 2020 small business expectations. But he also urged some caution.
“This year’s survey shows that, while business leaders recognize the risk of potential economic headwinds, the mood is overwhelmingly positive, and companies believe they are well-positioned to grow.
“However, given the concerns of a potential slowdown, it is critical that companies plan methodically and comprehensively for an uncertain year. Well-capitalized and thoughtful organizations will want to be nimble and take a strategic approach with respect to both opportunities and challenges,” said Weinstein.
The report revealed the second biggest concern for businesses after a potential economic slowdown. That concern involves hiring talent. The report says 12% of participants admit recruiting talent in 2020 is their primary worry.
Concerns over cybersecurity ranked next highest with small business owners. In fact, 10% of the survey’s participants named cybersecurity as a key anxiety. Meanwhile, 9% of small business owners named taxes and regulations as their main business apprehension for 2020. And 6% said their greatest concern was succession planning.
Small businesses should adopt a more proactive and positive approach in the forthcoming year, the EisnerAmper’s report advises. Meanwhile, the report advises caution when confronting issues that may arise. Plan well for every eventuality.
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It is nice that they are hopeful but do they have an idea on how they are going to achieve this?