The confidence levels of creative small business leaders have increased over the last several months. Part of this confidence has revealed itself in the amount of spending small business owners have stated they plan to do over 2012. Confidence and optimism are good, a sign of economic recovery. Notwithstanding, smart creative business leaders know to evaluate their spending before and after they sign checks.
Creative Business Leaders Spending More in 2012
In the Washington Post February 22, 2012 “Small Business Spending Hits Most Ambitious Level Since 2008” article written by J. D. Harrison it’s reported that, “More than one out of four small employers (28 percent) plan to increase the amount of money their firm allocates for long-term investments like machinery and computers in the coming year, marking the highest level since 2008, according to new data collected by Wells Fargo and Gallup.”
The article continued, “Small business spending has already started to head in that direction, according to the poll, which shows that 24 percent of business owners already increased capital spending in the past year.” In addition to being more optimistic about the economy, creative business leaders are also optimistic about their ability to acquire capital, the muscle behind any successful business, another reason for the increased spending.
Smart Small Business Spending Decisions
To ensure they make wise spending decisions, creative business leaders can:
- Start small. For example, small businesses looking to spend more marketing dollars to strengthen their online presence can hire copywriters, design technicians and social media professionals as independent contractors for several weeks and measure the results of their online marketing efforts before they launch out and pay tens of thousands of dollars to a marketing firm.
- Take out ads in local and regional yellow pages and measure those results before taking out ads in pricey national yellow pages.
- Combine print ads with online and offline radio and television interviews (again, measure results of these efforts before spending additional money)
- Invest a portion of their profits to grow their money even while they spend to strengthen their brand and increase sales
- Create record keeping systems that allow them to quickly monitor spending (and results)
- Read trade periodicals and network with other creative business leaders to learn about trends, savings on expenditures, etc.
- Avoid using credit cards to make purchases (no need paying hefty interest rates)
It’s usually a positive sign when creative small business leaders increase their spending. Marketing firms, manufacturers and wholesalers benefit which, in turn, strengthens the economy. However, creative business leaders are also encouraged to exercise sound judgment before making purchases, especially ensuring that purchase decisions pay off in the short and long-term.
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Sources:
http://www.washingtonpost.com/blogs/on-small-business/post/small-business-spending-hits-most-ambitious-level-since-2008/2012/02/22/gIQAM1OdTR_blog.html (Washington Post: Small Business Spending Hits Most Ambitious Level Since 2008)
