Every small business owner likely knows full well that it takes a large amount of sacrifice to make their companies succeed, but many are so eager to help encourage that growth that they're willing to make significant personal sacrifices to do so. And while this has long been the case, it seems that the number who say they do so regularly is on the rise.
Indeed, nearly 9 out of every 10 small business owners nationwide say they fall into this category, and close to 4 in 5 say they're making the growth of their companies their top personal priority, according to the latest American Express OPEN Small Business Growth Pulse survey. In addition, 3 in 5 say that they believe they spend more time working on growing their business rather than managing the day-to-day operations their companies might need as well.
"As 2016 unfolds, small business owners are working harder than ever to position their businesses for growth," said Janey Whiteside, senior vice president and general manager of customer marketing and relationship management for American Express OPEN. "The personal commitments that small business owners make are vital to their success, and their planned investments are indicative of how important growth is in the coming year."
It's not just time-related sacrifices
In addition to the fact that more owners are spending what ought to be personal time on growing their small businesses, many are also chipping in more of their own money to do the same, the report said. Close to 7 in 10 say that they have put large chunks of their personal savings into their companies for this reason, with male owners (72 percent) being significantly more likely than their female counterparts (62 percent) to do so.
Further, much of these sacrifices seem to be dependent upon the industry in which the small companies are based, the report said. For instance, while only 60 percent of companies in the service industries have received significant financial help from their owners, 73 percent of retail stores have done the same, and a whopping 89 percent of manufacturing concerns in the same boat.
Other issues owners now face
Beyond all that, though, these entrepreneurs also believe that they're doing the right thing, insofar as they believe their companies are well-positioned for success, the report said. So much so that close to 3 out of 5 say they're going to bring on more workers in the next six months, with nearly 3 in 10 saying they'll hire only full-time employees. Further, 71 percent say they're going to make substantial capital investments such as those for software and licenses, or equipment to aid in the continued expansion of manufacturing capabilities.
However, all these efforts should be undertaken only after a comprehensive financial plan has been charted out, and it's often a good idea for small business owners to do so with the help of experts at a local community bank.