One report says business start-ups have never looked better. Another survey talks about persistent decline. With the business outlook in churn, what do the numbers mean to you?
While you focus on landing that client, or pivoting your marketing message, the economy is moving fast. Getting to market with a good plan, new ideas, and great products makes for a winner, but it is also important to understand your business ecosystem—is it healthy?
New reports: Do statistics lie?
Numbers are important to any business owner. Your bottom line, your profit margin, your price point—every number carries weight. In terms of business climate, let’s take a look at some overall reports:
The Brookings Institution: This organization recently released a study on business dynamism, the churn that occurs when companies start-up, succeed, grow, or fail. Its findings include:
Kauffman Index: According to a study from the Kauffman Foundation, 2014 saw the strongest entrepreneurial growth since 2010. Some interesting entrepreneurial points include:
Notes Kauffman study author Arnobio Morelix, “When broad-based entrepreneurial opportunity improves at this pace, it’s an indication that the labor market is slowly recovering.”
Global Entrepreneurship Monitor (GEM): GEM is a joint collaboration involving more than 69 countries and conducts research on entrepreneurship around the world. Some GEM data on American entrepreneurs includes:
Why do numbers matter?
With absolute certainty, I can say these reports agree on one point—it remains an unsteady business environment. The confluence of economic indicators, new jobs, oil prices, and global politics play an important role in the local business environment where you operate your company.
I work with entrepreneurs to maximize the profit they earn—or will earn when starting up a new business. In the initial one to three years of your business lifecycle, the seeds of success and failure are sown. When I work with business owners, we look at expansion—or contraction—when needed, or replacement of outmoded operations with lower cost marketing automation to reduce labor and time expenses.
To gauge risk and support growth, it is important to keep an eye on the economic climate for a couple of reasons:
What’s in a number? Plenty. When you want to understand your bottom line—and boost your income—call me at 585-633-7563.
Yours in profit,