TD Bank US Small Business Owner Poll May 2014

Transcription

1 TD Bank US Small Business Owner Poll May 2014

2 Introduction Methodology TD Bank wishes to better understand what drives small business owners and their day-to-day task management. Methodology 797 online interviews among Small Business Owners were completed from April 23 rd 28 th Specific audiences of interest are: ly Representative (N=508) (N=289);, Florida and New York City The sample size of 508 has a margin of error of +/- 4.. Data has been weighted to be representative of each audience by age and gender, as well as region where appropriate. This report presents the findings in summary charts and tables. The statistical cross-tabulations are reported under separate cover. Significance is tested at 9 confidence interval and is represented by a circle: significantly higher Structure of Business/Number of Employees Sole Proprietorship 5 5 Limited Liability Company/Partnership 20% Corporation (Inc.) 20% General Partnership Other Employees 4 58% No Employees 5 4 Q2. Which of the following best describes the structure of your business? Q3. Besides yourself, how many employees work for your business?

3 Reasons For Starting a Small Business (Unaided) Independence and control is the number one reason to start a small business; the primary driving factor being the desire to be one s own boss. Reasons For Starting Business Independence /Control (NET) Be my own boss / be self employed Tired of working for corporations / someone else Independence Income Source (NET) % Income / money / make / earn money Extra income / make more money Passion (NET) I enjoy the job / profession / love what I do Great opportunity / a good idea at time Unemployed / Lack of Work (NET) Laid off / lost my job / recession Age Related (NET) 1 1 9% 8% 9% 8% Retirement / did not like being retired Field of Employment (NET) Consultant Other 1% Women owned businesses are more likely to cite Independence/Control (48% vs. 38% of men) as their motivation; specifically, mentions of work flexibility. Q4. Why did you start your own business?

4 Favorite Part of Owning a Small Business When asked, control and flexibility are the core advantages of owning a small business, as well as what makes owners the happiest. For one-in-five, following their passion, challenging themselves and taking risks are what makes them most happy. Control/Flexibility Flexible work schedule Being the boss - not reporting to anyone Controlling my own destiny Finding my own work-life balance Choosing the people I work with Working with family/friends Like Most About Owning Own Small Business & Driver of Happiness 41% % 9 Driver of Happiness 5 9% 1 1 1% % 59% 5 69% 9 Driver of Happiness 61% Providing/Service Providing a useful product/service Connecting with clients/customers Contributing to my community Creating employment % % % Passion Feeling pride in building something Challenging myself Following my passion Taking risks 51% 49% % 50% 48% 4 7 1% Making more money 49% SBO s with employees are more likely to mention money as an advantage (5 vs. 4 ), yet are also more likely to mention Passion as making them most happy (2 vs. 18%). Businesses with no employees are more likely to feel Independence/Control makes them most happy (60% vs. 51% of those with employees) 50% Q5. What do you like most about owning your own small business have? What benefits does owning your small business have? Q6. Are there any others we have missed! Q7. What makes you most happy?

5 Benefits Over Employment at a Larger Company Underscoring the initial motivation of independence, the control and flexibility of being a small business owner are clear advantages over working as an employee. Two-thirds cite following their passion as an advantage, while only one-third are in it for the money. Benefits of Owning Small Business Vs. Employment At Larger Company Control/Flexibility Flexible work schedule Being the boss - not reporting to anyone Controlling my own destiny Finding my own work-life balance Choosing the people I work with Working with family/friends 70% 61% 58% 58% 40% % % 4 90% Providing/Service Providing a useful product/service Connecting with clients/customers Contributing to my community Creating employment % % 4 Passion Feeling pride in building something Challenging myself Following my passion Taking risks % % 61% Making more money 3 3 SBO s with employees feel pride in their work and choosing the people they work with are clear advantages over employment at a larger company. owners in Florida are more likely to mention Money as an advantage (39% vs. 20% of those in NYC). Q8. Now, what advantages or benefits does owning your own small business have over working as an employee at a larger company?

6 Task Management Business owners love to talk to their clients/customers. Banking and bookkeeping can be a hassle - products and services should offer the advantage of freeing up time for what Owners like to do most and what they feel they should be doing more of. On average, Owners spend 15.4 hours each week banking and bookkeeping. Task Management Favorite Tasks Avg. Hours/Week Hated Tasks Should Do more of: Talking to clients/customers Fulfilling product orders/services Checking and replying to Marketing the business Sales/Setting appointments Banking/Handling Finances Bookkeeping Managing employees 40% 31% % % 28% 5 Other Mentions % Managing employees and marketing the business are liked more by those businesses with employees. Male owners like sales more (30% vs. 20%); while female owners are more likely to enjoy bookkeeping (19% vs. ) Owners working more than 60 hours per week find bookkeeping and banking to be particularly draining (58% hate bookkeeping and 3 banking). Q9. When thinking about a typical week of managing your small business, what tasks do you love doing? Q10. And what weekly or daily tasks do you hate doing? Q12. In order to run your business more effectively, which of these do you feel you should spend more time doing? Q11. Thinking about a typical week of managing and running your business, how do you allocate your time across all of the following tasks?

7 Task Management The story is similar for Small Business Owners - banking/bookkeeping products and services should be easy and support what Owners do best engaging with clients and business fulfilment. Owners spend more time on sales/setting appointments, handling finances, marketing the business and managing employees. Task Management Favorite Tasks Avg. Hours/Week Hated Tasks Should Do more of: Talking to clients/customers Fulfilling product orders/services Checking and replying to Marketing the business Sales/Setting appointments Banking/Handling Finances Bookkeeping Managing employees 60% 49% 3 38% % % % Other Mentions 4.80 owners in NYC feel they should be doing more bookkeeping (2 vs. ) and managing of employees (2 vs. 8%) than their Floridian counterparts. Q9. When thinking about a typical week of managing your small business, what tasks do you love doing? Q10. And what weekly or daily tasks do you hate doing? Q12. In order to run your business more effectively, which of these do you feel you should spend more time doing? Q11. Thinking about a typical week of managing and running your business, how do you allocate your time across all of the following tasks?

8 Sources of Advice Overall, industry associations/networking groups is the greatest source of small business ownership advice. Owners are more likely to seek out advice online and/or through a bank or bank manager. Sources of Advice on Running the Business Industry associations/networking groups Friends and family Web/internet Business publications/magazines Business advisor/consultant that specializes in my industry Bank or institution sponsored events/seminars Bank or bank manager Other Mentions 41% 3 30% % 41% 2 29% 9% Female owners are more likely to reach out to friends and family for advice (4 vs. 28%) owners in NYC are more likely to leverage a bank/bank manager for advice (30% vs. of Floridian owners) Q13. Where do you go for advice on how to run your business?

9 What Keeps Them Up At Night? Business management and growth are what small business owners think about the most. One-in-five are most concerned with Money or Finances. Primary Business Concern Business Management (NET) Deadlines / due date Scheduling Other business management mentions Marketing Business Growth (NET) Acquiring / finding / getting new clients Sales / increasing sales / more sales More business / getting enough business Money / Finances (NET) Cash flow / lack of money Finances Money Decline in Business (NET) Keeping the business going Clients / Customers (NET) Complaints / unhappy customers Government interference / regulations Economy / economic issues Nothing 1% 8% 1% Q16. What keeps you up at night? If you had to pick one thing about your business that you think about more than anything else, it what would it be?

10 Advice for Someone Starting Out Looking back, the one piece of advice a Small Businesses Owner would give to someone starting out would be to have a well thought out business/financial plan. Most Valuable Advice To Give Have a well thought out business/financial plan Start Small Protect your personal assets Save as much as possible before you start Make mistakes Leverage financial professionals (advisor, accountant, etc.) Other Q14. Looking back, what is the one piece of advice you would give someone looking to start their own small business? Please feel free to add your own thoughts!

11 Typical Work Week Nearly half of Small Business Owners work more than 40 hours per week (40% between 40 and 60 hours). Typical Weekly Hours Spent On Small Business 1 1 Less than 20 hours 20 to less than 30 hours 30 to less than 40 hours 40 to less than 50 hours 50 to less than 60 hours 60 to less than 70 hours 20% 5-40 Hours or Less 1 19% 20% Hours or More 1 50% 40 Hours or Less 50% 40 Hours or More Businesses with employees are spending more hours at work: 4 spend hours per week. In contrast, 6 of those with no employees spend less than 40 hours. Q15. How many hours in the week do you spend working for your small business?

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