An overwhelming majority of small business owners plan to spend money on their business in 2011, according to a new survey by Manta, Seventy-seven percent plan to spend in 2011 even though 85%
reported they implemented across-the-board cuts in 2010.
47% have prioritized marketing and sales as their top spend, with 24% noting business development as top priority and 23% opting for
marketing and advertising. 23% of the respondents said they couldn't prioritize expenditures for 2011, given the current state of their business.
Number One Priority for 2011 |
Priority | % of Respondents |
Staff (re-hire, new hire,
compensation) | 10% |
Tech upgrades | 4 |
Advertising and marketing | 23 |
Equipment/infrastructure
improve | 9 |
New product development | 5 |
New business development | 24 |
Insurance | 2 |
Unable to prioritize | 22 |
Source: Manta, January 2011 |
According to the study, more than half of those surveyed are likely to be considering
social media in their marketing and advertising plans for 2011. 42% of the respondents said they find social media useful in connecting with their customers, and 14% plan to implement it in the near
future.
Social Media Attitude (% of Respondents) |
Attitude | % of Respondents |
Find it
useful | 42% |
Don't find in useful | 30 |
Don't use, but plan to use in near future | 14 |
Don't use and have no plans to use | 8 |
Don't use and don't think it would be useful to
me | 6 |
Source: Manta, January 2011 |
The
survey also queried the small business owners about their 2010 expectations and the outcome of those expectations. Fifty-one percent said they had expected business to improve in 2010, with about a
third (34%) saying their expectations were right. Among the 31% of small business owners who thought business in 2010 would be about the same as the previous year, 23% said their prediction was right.
And for the 18% who predicted their business would decline, 15% said their fears were correct.
Business Expectations in 2010 |
Expectation | Result |
Expected business improvement, and was right | 34% |
Expected improvement, but wrong | 17 |
Expected same and was
right | 23 |
Expected same and was wrong | 8 |
Expected decline and was right | 15 |
Expected decline and
was wrong | 3 |
Source: Manta, January 2011 |
Looking ahead to 2011, 67% of those surveyed believe the recession is not over, despite what economic experts say. Manta's survey reveals a hopeful 19% predict the recession will end in
2011
Agree That Recession Ended in June of 2009 (% of Respondents) |
Opinion | % of Respondents |
Yes | 6% |
Yes, but it ended in 2010 | 8 |
No, I see it ending in 2011 | 19 |
No, the recession is not over | 67 |
Source: Manta, January 2011 |
The survey reports healthcare reform is still on the minds of the small business owner. Sixty-two percent (62%) said they are still concerned about healthcare, and 21%
agreed that "there has been so much written about its impact on small business that I don't know what to think.
Thirty six percent (36%) of the small business owners surveyed said they
cut their own salary last year. Despite putting less into their wallets, more than half of the respondents said they were giving year-end bonuses to their employees. Thirty two percent of the
respondents said they were giving out about the same bonus as 2009.
Cost Cutting in
2011 (% of Respondents) |
Action | % of Respondents |
Cut staff and/or salaries | 12% |
Work furloughs/reduced
work week | 8 |
Cut own compensation | 31 |
Eliminated or reduced advertising & marketing | 17 |
Other | 30 |
Source: Manta, January 2011 |
For more information from Manta, please visit them here.