In May 2012, Bloomberg Businessweek reported that small business owners are far from out of the woods. Since the beginning of the most recent recession, these entrepreneurs have been facing poor sales figures. Business advocates have been lobbying the federal government for help, requesting tax cuts, increased access to capital, and reduced regulation. Others question whether things are that bad within the skin care industry and other market sectors.
According to the May 2012 Intuit Small Business Revenue Index, average revenues for the 200,000 small companies studied increased 9.5 percent since the economy began recovering. The pace of this sales growth from the start of the recovery through February 2011 was 4.6 percent annually, compared to 4.2 percent revenue growth during the year and a half prior to the recession. However, Republican politicians are pushing through legislation to help struggling small businesses.
Delving into the Intuit data suggests that entrepreneurial pleas for help are legitimate. Small business sales have yet to completely recover from the 9.7 percent decline experienced during the economic downturn of four and half years ago. Sales for small businesses are currently 1.1 percent lower than prior to the recession. To put things in better perspective, small business sales would have to be 11.1 percent higher than their December 2007 figure just to keep pace with inflation.
Making things worse is the fact that sales growth has slowed since the recovery began. According to the Intuit index, sales growth has dropped to just 1.6 percent annually since February 2011. A year and a half prior to the housing bubble bursting, this figure was 11.2 percent. Some believe that temporary tax cuts will not greatly affect small business sales.
Owners of small skin care companies must take other steps to revive sales. When they have exhausted internally-generated ideas, they should look to a professional consulting firm like Illumination Consulting. Our small business consulting services consider the special needs of small businesses and we understand the challenges these companies face. We offer solutions tailored to the size of business, which should help any small company surpass its competition.
If you own a small business within the skin care industry, our professional guidance can benefit you immensely. After a comprehensive review of your business and its competition, our skilled professionals will make recommendations designed to skyrocket your sales. Putting daily financial struggles in the past allows you to focus on the future.