As the second half of 2024 approaches, Austin entrepreneurs express confidence in their businesses despite ongoing economic uncertainties. According to new Bank of America research, business owners in Austin anticipate revenue growth for the upcoming year and maintain a positive outlook on the overall economy.
Nationwide, entrepreneurs' concerns about key economic factors remain elevated but have decreased compared to last year. While worries about supply chain issues and a recession have significantly declined, concerns about inflation and interest rates have only slightly dropped. The Federal Reserve continues to hold interest rates at a 23-year high until inflation becomes more manageable. Additionally, the political environment and health care costs are prominent concerns for small business owners, both seeing increases since 2023. Despite these challenges, a majority (65%) expect their revenue to increase in the next 12 months.
To help meet revenue expectations in the latter half of 2024, small business owners can consider implementing three strategies:
1. **Conduct a SWOT Analysis**
Routine evaluations of your business are essential, especially before potential economic or political shifts. Analyzing your business’s strengths, weaknesses, opportunities, and threats (SWOT) can identify necessary changes and trade-offs for success. "70% of small business owners say they have made tradeoffs to maintain profitability," including personal sacrifices like working more hours or reducing salaries and operational changes such as increasing prices or cutting marketing costs. Informed decisions based on SWOT analysis results can strengthen your business.
2. **Monitor Your Cash Flow**
Tracking current and anticipated revenue against expenses helps anticipate when adjustments to your business model are needed to avoid unnecessary costs. Digital tools can aid in future-proofing your business. "71% of small business owners have digitally optimized their business and operations in the past 12 months," with many using mobile apps or online banking for easier financial tracking. This flexibility is particularly useful during economic uncertainty, enabling faster decision-making around cash flow management.
3. **Reconnect with Customers**
Economic turbulence affects customers as well as businesses. Building brand recognition through customer engagement ensures loyalty even during tough times. "82% of small business owners have implemented tactics to engage with their clientele," such as personalizing interactions, incorporating customer feedback, or hosting community events. Social media platforms also offer opportunities to humanize your business; "65% of small business owners use social media" for customer interaction and promotion.
Regardless of whether a small business is well-established or newly opened, there are always steps that can be taken to strengthen it amid an uncertain economy. Bank of America remains committed to providing resources necessary for operating and growing a business at every stage.