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Monday, December 22, 2008

Small Business Leadership Summit: What is the Outlook for 2009?

On December 8, nearly 100 invited leaders representing the entrepreneurial community met in New York City for the 2nd Annual Small Business Leadership Summit: Outlook 2009. The group heard from experts and discussed legislative, economic, market and business trends for 2009. The group identified key challenges that lie ahead in 2009, and heard from experts about how to survive and thrive in the coming year. Participants also shared solutions and resources that can better help entrepreneurs weather the current economic storm. The annual event is sponsored by Moran Media Group, a leading publisher of cutting edge small business information.

The leaders expressed “pragmatic optimism” for the economy in 2009, and for small businesses in the coming year. They shared a common sense that our nation will ultimately prevail this tough economic period, but acknowledged the many challenges for small business owners in 2009. I was a participant at the summit (as were other groups that either represent or work with small business owners). While we could have gotten mired down in pessimism, the gathering was energizing in that most of us remain optimistic about our nation’s future and the role that entrepreneurs will play in leading us back to economic prosperity.

Participants took part in an “Outlook 2009” survey that covered a range of issues regarding how entrepreneurs will fare, how they will conduct their businesses, the nation’s economic performance, and other key issues.

Here are key highlights of the survey results:

• Forty six percent of attendees felt that the economy would be “somewhat better” by the end of 2009, with 8% said “significantly better.” Twenty three percent said it would perform “the same,” while 15% said “somewhat worse” -- 8% said “significantly worse.”

• Regarding small business performance in 2009, 31% said revenues would grow – with 8% saying “grow significantly.” Eight percent said “remain the same.” (Total Revenue Will Grow: 39 %) Thirty one percent felt that revenue would “drop slightly,” while 23% said “drop significantly.” (Total Revenue Will Decrease: 54 %)
Eight percent said “remain the same.”

• Regarding credit availability, 57% said it would get “somewhat easier” to access credit; 21% said “no change”; 14%, “somewhat more difficult”; and 7% “significantly” so.

• On the hiring front, 29% said staffing levels will be higher; 36% said they will remain the same; while 36% felt staffing levels will be less than in 2008.

• On actions related to major capital improvements, the overwhelming majority of leaders (73%) reported that small businesses would postpone plans; and 27% felt that plans will continue.

• As for their expectations for the price of goods, 50% of participants said prices will remain the same; 36% lower; and 14% higher.

• What should be the first priority of the new Administration’s economic recovery plan? Not surprisingly the highest response was “small business incentives” (27%), which tied with “job creation” (27%). “Consumer spending initiatives” was the response given by 20% of the leaders with an equal number saying “bank recovery.” Only 7% liked the idea of infrastructure improvements.

2009 Tip: Avoid Being Road Kill

For lunch, our keynote speaker was none other than Andrew Sherman, my Growth Without Barriers co-host. He just published a great book ROAD RULES: Be the Truck, Not the Squirrel, where Andrew has identified twelve rules for greater happiness and satisfaction – all based on lessons learned from the road. For example, did you know that forty-one million squirrels get run over every year because they scamper back and forth across the road, with really no strategy or plan – the sole mission being to find nuts?

“Everything you need to know abut navigating the road of life can be learned during a routine errand behind the comfort of your steering wheel. So many of our core life lessons are reinforced by the simple act of driving – when to speed up and when to slow down; when to allow another to pass you and when to make your move; when and how to communicate when it is not clear who has the right of way,” says Andrew about his new book.

In addition on how to avoid being road kill, other lessons include: Sharing the Road, Objects in the Rear View Mirror are Closer Than They Appear, Accidents Can Happen Even to the Best of Drivers, and Pay Careful Attention to the Road Signs of Life (for example, “Children at Play,” “No Parking,” “Speed Bump Ahead,” etc.).

ROAD RULES is great, and I highly recommend it as a key book to read before tackling 2009. You can learn more by visiting: http://www.bethetruck.com.

Karen Kerrigan, President & CEO

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