The U.S. government’s reforms on corporate taxes may have helped in uplifting sentiments for 2018 among small business owners.
A Wells Fargo and Gallup survey revealed that business confidence in the next 12 months increased to 65 in an index of expectations. The poll based its findings from more than 600 respondents, which provided insights after the enactment of tax reforms.
Mark Vitner, Wells Fargo’s senior economist, said that a growing economy helped in the positive outlook of businesses. In 2017, Vitner said that the U.S. economy improved by 2.3%, while the respondents believe that “strong momentum” will continue this year. Harvard University’s Joint Center for Housing Studies (JCHS) particularly expects small companies in the home remodeling industry to experience a solid year, as spending among homeowners for improvements and repairs would increase by 7.5% in 2018.
For this reason, business owners should improve their offline and online marketing strategies to maximize a potentially good year. Digital campaigns like social media advertising serve as one option. If your business covers key cities, such as New York or Denver, pay-per-click (PPC) may be another good choice.
A positive sentiment among small business owners bodes well for employment, despite dropping slightly in January, according to a separate poll by ADP. Small-sized employers added 58,000 jobs last month, down from 93,000 jobs in December 2017.
Still, the Wells Fargo and Gallup survey noted that more companies said that they intend to add jobs in 2018. As a result, the need for an efficient human resources department will be more relevant for small businesses to avoid crucial recruitment mistakes.
Smaller corporate tax rates led small businesses to have a positive outlook for this year, although companies that plan to expand in the coming months should think of improving their branding and marketing strategies.