AdviCoach Franchise Reviews: 2015 Small Business Outlook

AdviCoach Franchise Reviews: 2015 Small Business Outlook

The National Federation of Independent Business (NFIB) recently published its December Report on small business optimism and the outlook is positive for the year ahead. 2014 saw an upturn in hiring rates, spending and revenue and the momentum appears to be continuing through to 2015. Nobody seems to be more enthusiastic about this recent upswing in the economy than small business owners. The report shows that NFIB monthly index of small business optimism rose 2.3 points from 98.1 in November to 100.4 – the highest level since October 2006.  pic1

“The December Index shows much broader strength led by a significant increase in the number of owners who expect higher sales,” said Bill Dunkelberg, NFIB Chief Economist. “This could be a breakout for small business. There’s no question that small business owners are feeling better about the economy. If they continue to feel that way 2015 could be a very good year.”

This is welcomed news for those looking to expand their businesses and hire more workers in 2015, something that has not been easy to do in this new economy.

Optimism

The NFIB report on small business optimism is only one such revealing outlook for 2015, with several reports including Moody’s Survey of Business Confidence as well as Kiplinger’s Economic Outlook citing positive business growth across the board. Small business spending, hiring and sales remain strong, as it appears as though small business owners are finally shaking off the effects of the recession.pic2

Labor Trends

If you take a look at the numbers, they are proving to be historically impressive:

According to the Jobs and Labor Turnover Survey by the Labor Department, businesses in the United States are looking to fill nearly 5 million positions, the highest number since January 2001.

The NFIB Jobs Report showed that employers added a net total of 252,000 jobs in December, capping the best year for hiring since 1999.

 

  • Nearly 3 million more people started earning paychecks in 2014. That drove the unemployment rate down to 5.6 percent, the lowest level since 2007 .

 

  • About 25 percent of the small businesses surveyed by the NFIB said that they increased pay in the past three months. According to the NFIB, this was the highest percent of companies to do so since before the recession.

 

  • According to the Bureau of Labor Statistics, the number of people quitting their job has exceeded the number of layoffs and discharges at the highest level in 12-years

 

The quit rate is another key indicator of small business health. A high level of quits signifies a bull market where employees are confident that they will find a new and better job. Effectively putting an end to the “a bad job is better than no job” way of thinking that has been popular in this new economy.

Conclusion

Overall, things are looking good for 2015. Everything including hiring, spending and profits are trending up and there is a positive momentum in the economy. It appears as though small business owners can begin to loosen their belts and begin enjoying the fruits of their labor.

For more information about how to navigate your small business in 2015, contact an AdviCoach small business coach today http://www.advicoach.com/contact-us.aspx.

 

 

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