LAS VEGAS (KLAS) — By and large small businesses are optimistic about the new year, but they are still concerned about specific things.
One expert spoke about the outlook for the new year and suggested how small business owners could reach a wider consumer base.
There are some 33 million small business owners in the US
The Small Business Administration reported that one million new small businesses were formed across the country last year.
But during the same time, 800,000 small businesses closed.
“It’s never been easier to open a small business but it’s never been harder to maintain a small business,” stated Brett Sussman with American Express.
He tracks small business activities and the challenges they face.
Sussman added that a recent survey revealed business owners think 2023 will be a good year from a revenue perspective – but many are concerned about the cost side and expect supply chain issues to continue until this summer.
“They are actually diversifying the number of suppliers they use to make sure they have products on their shelves, but that can mean they miss out on bulk discounts they get by going with one supplier,” he said.
Two-thirds of small businesses said they would be spending more on a marketing budget.
He said online marketing is even more important than ever this year, as a lot of purchases are happening on social media.
“Small business owners need to be prepared for that, and an Omni channel perspective,” Sussman said. “If you are looking to target a new demographic, gen z or millennials, you have to try a different platform, such as TikTok.”