2019 should be a great year for building a business. Check out the results of our small business survey to see why.

Small business owners are confident about the economy and their prospects for growth. What is behind that confidence, and what are their priorities, plans and worries for the coming year? The annual SunTrust survey of small business owners, conducted in February 2019, asked 515 small business owners (annual revenues between $100,000 and $5 million) what they thought about the current business environment and their priorities for 2019.

Key Takeaways

With stress levels down and confidence up, owners are ready for growth, yet many don’t have specified growth plans or broad communication of what they want to achieve and how they will grow. They want to take charge of cash management and cover the cash fluctuations and shortfalls common for small businesses.

Find out more about how owners plan to take advantage of opportunities in 2019.

2019 Trends

Small business owner confidence in the strength of local and national economies increased for the third straight year. Most businesses feel that their company’s financial well-being is on par with or better than in 2018. While stress levels have declined from the previous year, insufficient revenue, challenges to increasing profits and rising costs leave nearly half of owners extremely/somewhat stressed.

Growing the business is the #1 priority for small business owners and increasing business profitability is the next. Eighty-five percent of owners say that cash reserves are important to business strategy, yet only about half (44%) feel they are performing well at accumulating those reserve funds.

Three-quarters of business owners say that attracting new customers is the greatest opportunity for growth. They plan to market to more profitable niches, establish online and/or social media presence and develop new products.

Learn best practices >

Leverage your advisors >El enlace abre una ventana nueva

Put your growth plans in gear >El enlace abre una ventana nueva

Ver los resultados completos de la encuesta (infografía) >

Siguiente: resultados de la encuesta de flujo de efectivo >

Las 3 áreas principales en las que las pequeñas empresas planean invertir durante el 2018
 

Effective Cash Management

Managing cash flow continues as a top priority for owners. Monitoring monthly cash movement ties with building cash reserves in importance, but owners are doing better at monitoring cash movement (55% doing well versus 30% needing improvement) than at building cash reserves (44% doing well versus 41% needing improvement).

Two-thirds of businesses experienced cash flow variations in 2018 resulting from seasonal revenues and expenses or from the loss/gain of major customers. More than one-third experienced a cash shortfall that required an infusion of the owner’s personal cash or a business line of credit. Only one-quarter of owners had cash reserves available to cover the cash crisis.

Small business owners feel confident in their access to business credit, with many using business or personal credit cards and business loans. Building cash reserves is the top priority for improvement in 2019. 

Manage your cash flow with confidence >

Build cash reserves >

Monitor your cash effectively >El enlace abre una ventana nueva

Siguiente: resultados de la encuesta de crecimiento >

Las 3 prioridades principales de mejora en flujo de efectivo para pequeñas empresas
 

Growth Planning Aids Business Strength

Business owners look for growth this year from opportunities presented by the strong economy. Owners believe sales growth will come from finding and acquiring new, more profitable customers through niche marketing and digital/social media efforts.

Only half (49%) have created a business growth plan, even though they have identified growth as the top priority. Of those, nearly 30% have neither written out a plan, nor shared it with anyone. The fastest-growing companies understand the opportunities a growth plan can provide and are 1.5x more likely to have a publicly stated growth plan, and to share that plan with 15 or more family members, business partners or advisors.

Cash reserves once again feature prominently in growth plans, with 61% of business owners planning to invest additional cash from exceeding growth expectations back into the company as cash reserves.

Put the right pieces in place for business growth >

Find the right funding sources >El enlace abre una ventana nueva

Learn about setting growth goals >El enlace abre una ventana nueva

Siguiente: resultados de la encuesta de rentabilidad >

Las 3 prioridades principales de mejora en crecimiento para pequeñas empresas
 

Aumento de la rentabilidad

Owners plan to improve business processes to achieve increased profitability. The vast majority cite controlling expenses as the top profitability measure, followed by improving time management skills and developing a financial plan/budget.

Increasing profitability aligns with growth plans and overall business strategy goals. Over half of small business owners plan to grow sales to improve profitability, while one-third plan to increase pricing.

Rising costs and expenses put pressure on the profits. Two-thirds of owners are enacting expense savings or cost cutting measures while close to half plan to increase pricing and perceived product value to keep pace with inflation and rising costs.

Companies are looking to technology to help improve cost-effectiveness. Half of small businesses cite online marketing, social media presence and online/ecommerce websites for payments and ordering as their best technology investments. 

Learn strategies to increase your business's profitability >El enlace abre una ventana nueva

Make informed decisions with real-time financial information >

Get a handle on expenses >El enlace abre una ventana nueva

Las 3 prioridades principales de mejora en rentabilidad para pequeñas empresas
 

Lleve su empresa al siguiente nivel.

SunTrust tiene los productos y servicios para ayudar a que su empresa avance.
Visite suntrust.com/smallbusiness para ver más información.

Privacidad | Fraude y seguridad | Términos y condiciones
SunTrust Bank, Miembro de FDIC. © 2018 SunTrust Banks, Inc. SunTrust es una marca comercial de SunTrust Banks, Inc. registrada a nivel federal.