There are many financial risks associated with starting and maintaining a successful home business, and results from a new survey revealed some of the major concerns when it comes to owning and running a small company.
Healthcare a serious concern for small business owners
According to the Wells Fargo/Gallup Small Business Index, healthcare costs are a top concern for business owners, with 54 percent of those surveyed saying these expenses hurt their operating environment. Taxes on small companies was another main concern, with 53 percent agreeing that they negatively influenced their business. Other top concerns included the price of energy and gas, government regulations and the federal debt ceiling.
Some lesser worries included the availability of credit for operating a business, with 44 percent saying it had no effect and just 25 percent saying it hurt their ability to function. Federal spending cuts and immigration policies also failed to prevent success for many small businesses, according to the index.
Future appears bright
With less major concerns, business owners can be more confident, another component highlighted by the index. For the month of January, optimism improved by 9 points after dropping significantly in November. When compared to sentiment in January 2012, the index was lower but still an improvement from the final months of last year.
Owners were also asked about the predictions for the coming year. The report found that the Future Expectations component increased to 11 after posting a negative figure in November. Overall economic improvements have likely contributed to the jump optimism, and economists predict more positive news for business owners, including more activity throughout 2013.
While financial pressures can cause business owners to seek out lower priced commercial insurance. Instead, it may be worth overlooking your taxes, the costs of energy and gas it takes to keep your company active, while minding government regulations and the federal debt ceiling.
It is important to have the right amount of coverage, so cutting corners on this aspect of owning a small business could be a mistake should an accident or incident occur. Depending on the size of your company, you may need to increase limits that are often set by basic business insurance policies.