The improving economy has been a tide that’s lifted almost all ships over the last few years, and when it comes to small businesses, this may be especially true. Now, many experts are saying this could be the biggest year in terms of improvement seen since the end of the recession, and that, too, probably portends some very good things for independent companies across the country.
Given the ways in which the economy is now moving positively, it seems small businesses nationwide are in the best position to succeed since 2007, prior to the onset of the financial downturn, according to a report from Business News Daily. Some projections from the business forecasting firm Kiplinger show that companies tied to the housing, energy, and health care industries will see the biggest steps forward.
“Americans are feeling more optimistic about their finances and will spend more this year since they’ll see an increase in personal income,” Gillian White, associate editor for the Kiplinger Letter, told the site. “Small businesses will benefit from that trend. The housing market will continue to strengthen, helping construction and home maintenance firms. Small [businesses] will have a better year this year than they have in a while. So many [businesses] that were holding off on expansion or equipment replacement will take advantage of improving circumstances to move forward with those plans. Credit will also be a bit easier to come by this year, which will help small [businesses] finance equipment purchases or expansion.
Why will these sectors benefit most?
When it comes to the housing market, many experts believe consumers are now in a financial position to buy or improve homes, after having larger budgetary difficulties in recent years, the report said. As such, the companies associated with the home building industry could particularly benefit. Likewise, more money is being poured into the energy sector these days, and well-positioned independent companies could find themselves dealing with more business and increasing revenues. Finally, because of the way the health care system has been overhauled – and because more Americans now have health insurance than ever before – small businesses that work in the industry may likewise benefit from the influx of consumer dollars into that sector.
Owners worried about their bottom lines even as income improves might want to consider the ways cutting expenses will be able to help them. For example, if they find more affordable commercial insurance, or other types of small business insurance, they might be able to save thousands every year.