• Business owners are more optimistic
• The marketplace is changing
• Cash flow is improving

Optimism
Businesses are much more optimistic than they were at the close of the first quarter. Optimism among businesses has improved from 33 to 45%. Those respondents who feel they will gain market share in 2009 has increased from 15 to 70%. An overwhelming majority (73%) feel their business will emerge from the recession stronger than before; the minority reporting their business will emerge weaker or the same decreased from 34 to 27%.

Realities of a Changing Marketplace
While optimism has grown, reality has also arrived. The marketplace has changed as a result of the economic slowdown. In fact, over half of the respondents report that the competition has decreased. Revenue expectations reflected this new reality as the percentage of business owners anticipating a revenue decrease in 2009 grew from 24% in March to 42% in June. As a result of the changing marketplace 97% of respondents report making changes this year and 63% report they intend to make more changes.

Other signs of reality included a decreased percentage of respondents focusing on core business to maintain or grow, shrinking from 45 to 30%, and the percentage of respondents reporting a lack of capital hurting their business grew from 16 to 30%.

Cash Flow
However, since March, respondents report better cash flow. June’s survey reports 39% saw improvement, versus March’s 3%. The June survey shows cash flow remains unchanged for 48% of respondents versus 40% in March. Only 13% of the June respondents reported worsening cash flow versus 57% in March.

Signs of an Improving Economy
The number of businesses reporting their business is doing very well increased from 7 to 13% and those reporting modest growth increased from 10 to 23%. Meanwhile, those reporting their business is off decreased (from 67% to 55%). Businesses are showing signs of optimism; 65% plan to make capital investments this year if funding is available—an increase from 35% in the March survey.

Click here to review the detailed survey results. Learn how businesses are
managing to stay afloat or even thrive in this difficult economy.

• Wide-scale change
• A focus on strengthening the fundamental brand
• A priority shift toward improving the core business

Change is nearly universal. Almost all businesses have had to make adjustments since January 1st, and 65% plan to make even further changes this year.  Only 7% of business owners reported that business is doing very well, and only 3% say they have had improved cash flow. The vast majority of businesses say that their business is off as a result of the current economic climate. Clients are fewer, and the demand for products and services has declined.

Top-of-mind. The most important business initiatives planned for 2009 include strengthening brands, improving existing products and services, and improving internal efficiencies. As the need to stand out from the pack becomes even greater, businesses are focusing on what sets them apart from their competition.

An improvement of core business. Many businesses have been able to stabilize or even grow by focusing their efforts on improving the core business. Although there has been an overall decline in demand, the majority of business owners feel they are making the necessary adjustments, and anticipate that they will come out of this recession even stronger than before.

In spite of the trend toward tighter budgets and fewer customers, business owners feel the general outlook has improved since the beginning of the year. A significant percentage have changed their economic perspective from pessimistic to neutral. In fact, over half the business owners surveyed view this economic climate as an opportunity to gain market share, grow, and emerge as a leader.

Click here to review the detailed survey results. Learn how businesses are managing to stay afloat or even thrive in this difficult economy.

Perspectives on Recession

Economic climate survey results

Read the Results

If you take 3 minutes to complete the attached brief survey, we’ll share the results with you. Not to worry, its totally anonymous. This valuable survey will provide insight to perceptions and attitudes as well as an indication of how others are either weathering the storm or thriving in this environment.

We plan this to be the first of a quarterly measurement. Complete this survey along with future ones and you’ll see the trends in business perceptions and attitudes as they develop.

Thanks for completing this short questionnaire. We’ll forward the results in the next couple of weeks.