How KeyBank Small Business Wellness Index Helps Your Small Business
In June 2019, KeyBank launched in Small Business Wellness Index
KeyBank has launched the Small Business Wellness Index, which measures the drivers, challenges, payment trends, and financing needs of small business owners across the country.
The KeyBank Small Business Wellness Index
38,000 American small business owners across the bank’s 15-state footprint. The data provides a real-time perspective on small business sentiment and behaviors in the United States.
What did the KeyBank Small Business Wellness Index Find?
So, what did the index uncover? It uncovered three trends.
Small Business Owners Start Their Business to do What the Love
Respondents saying they wanted to be their own boss (21 percent), were motivated by a passion for their business (20 percent) or by their entrepreneurial spirit (16 percent).
The Need for Cash is a Top Concern
Cash flow (43 percent), operating costs (24 percent), and financial control (14 percent) remaining the biggest challenges for small businesses owners across all markets and company ages
Access to Financing is Getting in the Way
Increasing working capital (16 percent), purchasing equipment, vehicles, or inventory (13 percent), as well as expanding products, services, or locations (12 percent) [were the key challenges getting the way]
How Can the KeyBank Small Business Wellness Index Help Your Small Business?
Not surprising that financing is a key challenge
First, since most small business owners started their business to do what they love, not because they are bankers, it’s not surprising that financing is a key challenge.
If you find yourself in a similar situation, we’ve written several posts on the topic that can help: “How to take the pain out of getting a loan”, “Small Business lending is booming”, “How to avoid looking stupid when talking to banks”.
Next, cash flow is not a well-understood metric for most small businesses
So, it’s not a surprise that it’s a top concern. Getting a handle on cash flow requires a robust business model, where you are able to forecast demand and costs accurately. If you’re not an accountant, this might sound like a foreign language. But, it doesn’t have to be. We explore this topic in our blog “5 Steps to take when analyzing your business”.
Finally, get help
If this isn’t your passion, and you aren’t comfortable with all the numbers, find someone who can help. We provide several options in “How to learn more about business for free”.
We also recognize that few small businesses have the luxury of time to invest in learning about business. There are paid concierge services, like ProStrategix for instance, who can hold your hand through this process. The KeyBank Small Business Wellness Index is a useful tool for small businesses. It provides a pulse on the key issues we all face.