FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
FINDING WORKERS, RECESSION ARE
TOP WORRIES FOR SMALL BUSINESSES
TCBusiness.com 39
Small business owners, what keeps you
up at night? If it is finding workers or managing
your debt, you’re not alone.
Finding qualified workers to fill open
positions continues to be the top worry of
Florida’s small businesses, according to a
Florida Chamber of Commerce 2019 Third
Quarter Small Business Index survey.
“Florida’s small businesses continue to
be concerned about being able to hire
a talented workforce,” said Jerry Parrish,
chief economist and director of research
at the Florida Chamber Foundation, who
added that improving workforce quality
was part of the state’s strategic plan for
the next 10 years. “Improving Florida’s
talent pipeline for a better workforce will
help ensure jobs have talented employees
and will help put workers on the path to
prosperity.”
The No. 2 worry was the possibility of
a recession. Debt may also be keeping
small business owners up at night. In the
chamber survey, about as many businesses
surveyed believed it would be harder
to get financing in the next six months
as those who thought it would be easier.
About a quarter of those who tried to get
financing in the last six months could not,
the survey said.
The concerns of small businesses are
of key importance in a state where 92
percent of all its businesses have fewer
than 20 employees, Parrish said during a
panel discussion of state leaders, including
Michael Myhre, CEO of Florida SBDC Network.
The panel discussion was conducted
at the Small Business Leadership Conference
held in Orlando over the summer.
The annual conference is presented by the
Jim Moran Institute for Global Entrepreneurship
and the Florida SBDC Network.
At the rate Florida has been growing, at
about 1,000 businesses a day, 3 million
more small businesses will be created by
2030, Parish said. The state has 2.5 million
small businesses and is No. 2 after Vermont
for the percentage of business ownership
in the population: 21percent.
Other concerns in the latest Florida survey
include growth management, government
relations and healthcare costs.
Yet, despite those concerns, 50 percent
of respondents are booking higher sales
now than the same time last year, and 65
percent expect to have higher sales this
year than last. That’s up from 62 percent
last year. Also, 39 percent plan to hire
in the next six months, down from 44
percent a year ago, and 41 percent plan to
invest in equipment or technology.
Meanwhile, a recently released national
survey of small businesses showed
Florida’s entrepreneurs were not alone in
their concerns and outlooks.
The annual Small Business Credit Survey
conducted by 12 Federal Reserve Banks
shows that 70 percent of small firms have
outstanding debt. As many as 64 percent
of small businesses reported struggling
financially, with operating expenses being
the No. 1 problem (40 percent), followed
by credit availability (31 percent) and making
payments on debt (29 percent).
In order to address those financial issues,
69 percent of small businesses used
personal funds, 45 percent took out additional
credit, 32 percent cut staff, hours,
and/or downsized operations, while 28
percent made a late payment or failed to
make a payment altogether.
Still, 35 percent of businesses in the
national survey reported higher revenue
growth, and 33 percent hired workers to
their payrolls in the last year, the survey
showed.
According to Frank Fink, business
consultant with the Florida SBDC at IRSC,
one proven tool used to convert worry
and concern into positive actions is for
the business owner to create and develop
business specific Key Performance Indicators
(KPIs) for the operation. Tracking
business operations through disciplined
review of KPIs removes the guesswork in
evaluating business expenses, revenues
and debt.
“Regularly reviewing and tracking
relevant KPIs can help a business owner
measure progress, assist in creating strategic
initiatives and improve the decision
making process,” said Fink. “Also, reviewing
and understanding leading and lagging
indicators can assist a business owner in
understating and exploiting market trends
in an effort to potentially expand sales.”
The Florida SBDC at IRSC can assist a
business owner with developing business
specific KPIs to improve business
performance and profitability and simplify
tracking and evaluating progress. For more
information regarding the Florida SBDC at
IRSC and its no-cost business assistance
programs, contact Katie Muldoon at
772-336-6285 or kmuldoon@irsc.edu. v
BY NANCY DAHLBERG
Frank Fink, a business consultant with the
Florida SBDC at IRSC, began his 48-year
career in financial and operations management
serving with the United States Air
Force as an auditor. Following his military
service Fink began his corporate work
with Florida Power & Light in their nuclear
power division. After 24 years with FP&L,
Fink went on to serve with other energy
companies, in their nuclear divisions,
including the Tennessee Valley Authority,
Commonwealth Edison and Exelon Energy
Throughout his career, Fink served in numerous
financial and operations management
positions, where his responsibilities
included: business planning, accounting
and financial control functions, business
operations, strategic planning, supply
chain management, information systems
management, project management,
estimating and scheduling. Fink currently
serves and advises his clients on best practices
for financial, supply chain controls
and contracts. Fink holds degrees and
certifications from Indian River Community
College, Barry University and Villanova
University.
/TCBusiness.com
link