Small Business Cash Flow Improves

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Small Business Cash Flow Improves

By Credit Federal | Published 05/28/2008

Take advantage of rewards offered by business credit cards. According to the Discover(R) Small Business Watch(SM), small business cash flow issues improve.

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More Business Owners Take Less Vacation Time and Stay Connected by Email

According to Discover(R) Small Business Watch(SM), fewer business owners have poor confidence in the economy as cash flow issues improve. The Discover(R) Small Business Watch(SM) rose more than five and a half points in May to 81.8, up from 76.1 in April.

"Cash flow is such a key indicator, that whenever business owners tell us cash issues have improved, we expect to see a rise in confidence," said Ryan Scully, director of Discover's business credit card. "Together with improved confidence in economic conditions for their own businesses, cash flow issues will be a good barometer of whether this rise in economic confidence is a trend, or just another blip in what has been a downward pattern for almost a full year."

Key Findings:

28% of owners say that economic conditions for their business are getting better, an increase over 24% in April
71% of small business owners think the U.S. economy is getting worse, a decrease from 76% in April
39% say they have experienced cash flow issues over the last 90 days, a decrease from 44% in April and 47% in March

Poll: Owners take less vacation time and stay connected with work via email

Overall, small business owners are spending more hours per day and more days per week on the job than the rest of the population. Clearly 45 percent of small business owners work six or seven days a week, more than twice the 19 percent of the general population who have a similar schedule.

The state of the economy hasn't helped, either. One in 4 small business owners said they are working more hours because of the economic downturn, with 55 percent working the same number of hours.

"The flexibility and independence that is so precious to this segment is even more important in light of the time business owners spend on the job," Scully said. "They depend on their customers and clients, so staying connected to the business nearly round the clock is all part of the process."

Even when they are away, small business owners often stay in touch with the office: 40 percent admit to carrying a wireless email device to keep in touch with their business, customer and clients when taking time off of work. Luckily, their spouses usually understand. 53% of owners say their spouse approves of them checking business email on their days off or during vacation, but patience may be running thin. That percentage is down from 55 percent a year ago.

More Work Survey Highlights:

59 percent of small business owners define a "day off" as being available for calls and emails, working some time or even working all day at a remote location. Only 31 percent of the general population feels the same.
23 percent of owners have not taken a planned vacation that lasted at least a week in more than four years.
25 percent of owners indicated they work 10 to 12 hours per day, compared to 15 percent of the general population who say they work that much.
On official holidays, 47 percent say they are at work "always" or "most of the time."

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Small Business Cash Flow Improves - by <a href=http://creditfederal.com>CreditFederal.com</a> Take advantage of rewards offered by business credit cards. According to the Discover(R) Small Business Watch(SM), small business cash flow issues improve. <a style="font-weight: bold;" href="http://creditfederal.com/small-business-credit-card.html">Search Business Credit Card Offers - Click Here </a> <a href="http://creditfederal.com/travel-credit-card.html">Search Travel Credit Card Offers - Click Here</a> <a style="font-weight: bold;" href="http://creditfederal.com/popular-credit-cards.html">Search Consumer Credit Card Offers - Click Here</a> More Business Owners Take Less Vacation Time and Stay Connected by Email According to Discover(R) Small Business Watch(SM), fewer business owners have poor confidence in the economy as cash flow issues improve. The Discover(R) Small Business Watch(SM) rose more than five and a half points in May to 81.8, up from 76.1 in April. "Cash flow is such a key indicator, that whenever business owners tell us cash issues have improved, we expect to see a rise in confidence," said Ryan Scully, director of Discover's business credit card. "Together with improved confidence in economic conditions for their own businesses, cash flow issues will be a good barometer of whether this rise in economic confidence is a trend, or just another blip in what has been a downward pattern for almost a full year." Key Findings:<ul><li>28% of owners say that economic conditions for their business are getting better, an increase over 24% in April</li><li>71% of small business owners think the U.S. economy is getting worse, a decrease from 76% in April</li><li>39% say they have experienced cash flow issues over the last 90 days, a decrease from 44% in April and 47% in March</li></ul> Poll: Owners take less vacation time and stay connected with work via email Overall, small business owners are spending more hours per day and more days per week on the job than the rest of the population. Clearly 45 percent of small business owners work six or seven days a week, more than twice the 19 percent of the general population who have a similar schedule. The state of the economy hasn't helped, either. One in 4 small business owners said they are working more hours because of the economic downturn, with 55 percent working the same number of hours. "The flexibility and independence that is so precious to this segment is even more important in light of the time business owners spend on the job," Scully said. "They depend on their customers and clients, so staying connected to the business nearly round the clock is all part of the process." Even when they are away, small business owners often stay in touch with the office: 40 percent admit to carrying a wireless email device to keep in touch with their business, customer and clients when taking time off of work. Luckily, their spouses usually understand. 53% of owners say their spouse approves of them checking business email on their days off or during vacation, but patience may be running thin. That percentage is down from 55 percent a year ago. More Work Survey Highlights:<ul><li>59 percent of small business owners define a "day off" as being available for calls and emails, working some time or even working all day at a remote location. Only 31 percent of the general population feels the same.</li><li>23 percent of owners have not taken a planned vacation that lasted at least a week in more than four years.</li><li>25 percent of owners indicated they work 10 to 12 hours per day, compared to 15 percent of the general population who say they work that much.</li><li>On official holidays, 47 percent say they are at work "always" or "most of the time."</li></ul> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.