Expansion plans for small businesses is a top priority for 2018, with more than half anticipating revenue growth and 22 percent planning to hire more staff, according to the 2018 Small Business Survey by TD Bank.
The data found that 46 percent of the 578 businesses owners surveyed said that they either have or will apply for credit in the next year, compared with 21 percent last year.
“It is encouraging that a large portion of small business owners plan to seek credit this year and expand,” said Jay DesMarteau, head of commercial specialty segments, TD Bank. “Banks can work with business owners on solutions that make sense for their needs and provide insights into how business and personal credit and income can impact their financial future.”
Among those surveyed that are anticipating business investments due to the tax reform:
- 15 percent expect higher earnings;
- 14 percent will use extra capital to pay debt;
- 13 percent plan to integrate new technology;
- 13 percent will buy new equipment.
Although confidence is high among small business owners, when asked to anticipate top challenges this year, 27 percent said the health of the economy; 20 percent said tax reform; 14 percent said inflation; and 13 percent said rising interest rates.
Another challenge is what to do when they retire, with 52 percent saying they do not have a retirement or succession plan for their business.
“Business owners shouldn’t count on today’s growth to fund them in retirement or allow the daily challenges of running a company stand in the way of long-term, strategic planning,” DesMarteau said. “Working with experts for all financial decisions — from startup phase to retirement — can help put a small business on the best path to success.”