Balboa Survey: SBO’s Have Robust Investment & Marketing Plans
OCT 24, 2018 - 7:05 am
Balboa Capital announced the results of its Q4 survey that was conducted to gauge the investment plans of small business owners (SBO) for the final months of 2018.
The results reveal eight in 10 SBO’s are planning to invest in new equipment, technology and marketing during the fourth quarter, and 1 in 3 SBOs anticipate hiring seasonal employees. The survey was sent to a sample of small business owners nationwide during the first week of October, 2018.
“Small business owners are reporting increased investment plans in equipment, marketing and personnel for the remaining months of 2018,” said Carla Freberg, Director of Sales at Balboa Capital. “This correlates with the rise in the number of business loan and equipment lease applications we are seeing. We think this is a result of the positive economic conditions, and continued confidence among business owners. Plus, many business owners are looking to take advantage of the Section 179 tax deduction before the end of the year.”
Key findings from the survey include:
When asked what is on their small business “holiday wish list,” 63% of SBOs said new clients/customers, 55% said new/upgraded equipment, 34% said more inventory, and 26% said technology.
The most popular marketing strategies for SBOs during the upcoming holiday season are social media (67%), promotions (42%), free shipping (21%), extended hours (20%), and coupons (18%).
Among SBO’s who are preparing their websites for the holidays, the most popular strategies are holiday themes, mobile optimization, mobile payments, and paid advertisements.
One in three SBOs plan on hiring part-time employees for the holidays.
Seven in ten SBOs plan on giving raises or bonuses to their employees during Q4.
When asked how much they plan to invest in their companies during Q4, 35% of SBOs said $25,000 or more, 44% said between $5,000 and $25,000 and 3% said less than $5,000.
To cover the costs of their Q4 investment plans, 32% of SBOs will apply for a small business loan, 29% will apply for an equipment lease, and 18% will seek to obtain a line of credit.
“The final months of the year can be hectic for small business owners, and the last thing they want is a long and drawn-out financing process. Our technology-based lending platform is a real time saver for them. Applications can be submitted online in a matter of minutes, decisions are made promptly, and funding is provided fast,” said Freberg.
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