Small Businesses Running Low on Optimism This Labor Day
BizFilings Helps Small Business Owners Position Their Futures
Madison, Wis. (August 31, 2010)
Labor Day, once conceived to celebrate labor unions that worked tirelessly, may better serve this year to celebrate and promote small businesses. Small businesses are the major source of U.S. job creation and embody the American entrepreneurial and optimistic spirit. This Labor Day, BizFilings, a small business incorporation service company, sees that spirit seems to need a boost, as small businesses are reporting less optimism about their future than ever, according to a recent Wells Fargo/Gallup Small Business Index.
The Small Business Index, released in August 2010, concludes that small businesses are reporting the lowest levels of optimism about their future since the survey’s inception in 2003. Most of this dip in optimism revolves around small business owners' expectations of future revenue, cash flow and ability to create new jobs. With such low expectations for future sales, many small businesses are finding ways to cut back or reduce costs.
One cost that small businesses should be sure not to cut this year is the cost of incorporating. Incorporating a business has many attractive features, including tax advantages, greater credibility for the business and freedom from personal liability for business debts. Incorporation may give small businesses a competitive edge when it comes to vying for contracts or securing funding. Every advantage counts especially in a time when future sales are uncertain.
The recent National Federation of Independent Business’ Small Business Economic Trends Quarterly Report echoes the small business uncertainty sentiment. The report, also released in August, shows dips across the board in projected confidence in multiple areas, from the ability to get financing to overall business profitability.
"According to the NFIB report, small business owners are reporting that loans are harder to get, and more owners expect that it will be harder to arrange financing than it was in the past," says Karen Kobelski, general manager of BizFilings. "Incorporating gives small businesses credibility and it is a step that is frequently required by banks before they will issue a loan."
Visit BizFilings’ Learning Center for additional guidance on the benefits of incorporation.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, www.wolterskluwer.com, a leading global information services company. Wolters Kluwer had 2009 annual revenues of €3.4 billion ($4.8 billion/£3.0 billion); employs approximately 19,300 people worldwide; and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.