Latest news with #SBOs
Business Journals
01-06-2025
- Business
- Business Journals
D.C. business owners may not be as financially prepared as they believe
Nearly all (94%) of small business owners (SBOs) across the country report they believe their company is financially prepared for the next 12 to 18 months. Digging deeper in Washington, D.C., SBOs are concerned about their ability to sustain operations, with 81% saying it would take just two quarters or less of revenue shortfall before they became worried about their company's future — higher than the national average at 72%. This is according to TD Bank's inaugural Financial Preparedness Survey: Small Business Owners Report, which surveyed U.S. SBOs' current confidence in their financial preparedness. A core survey sample was conducted in the D.C. metro area. In D.C., the majority of SBOs (82%) are the sole person responsible for managing their company's financial preparedness. When asked about the top barriers to better determining their financial picture, local business owners indicated their top gaps are a lack of financial education and/or previous business experience and having trouble adapting to customer preferences. Long-term preparedness of D.C.-area business owners also is in question, with just 26% indicating they have a retirement or succession plan in place. There are several reasons why these have not been developed, with 39% reporting they don't believe their business is mature enough yet to warrant a succession plan, 32% of SBOs expressing concern about the cost involved and 22% worrying about potential family conflicts when discussing the future. Nearly a quarter (21%) of D.C. SBOs stated they have no plans to ever develop a retirement/succession plan. "Small business owners often act as the whole executive team of their enterprise —CEO, CFO, marketer, HR and more — which means they frequently are focused on day-to-day operations," said Chris Ward, regional president of the Mid-South Metro, TD Bank. "SBOs don't have to do it all alone and accessible resources such as their banker can offer financial check-ups and guidance on how to create a business and financial plan that spans several years." Local business' outlook mixed Looking to the next 12 to 18 months, 76% of D.C. SBOs expect their business to meet or exceed profit expectations and 75% anticipate they will hire additional staff. Survey respondents also noted they are taking steps to improve their business' outlook over the next year and a half, including using digital and AI budgeting tools (51%), getting a loan or line of credit from their bank (48%) and hiring a financial advisor (41%). Still, economic conditions remain a top external concern for SBOs in D.C., with inflation and interest rates ranking as their biggest worry in the year ahead. Survey participants also indicated they have operational concerns for their companies, with investing in marketing, needing to reduce their workforce and labor shortages topping the list. "Owning and operating a small business is a rewarding but stressful enterprise," Ward said. "Indicators show that SBOs are still feeling positive but are closely watching external factors. Just as individuals create a 'rainy day fund,' SBOs should aim to build up their cash on hand to better withstand the unexpected." TD Bank's Financial Preparedness Survey: Small Business Owners Report surveyed business owners with more than $100,000 in annual revenue and 100 or fewer employees. A representative sample of 150 business owners in D.C. participated. Among these, 75% had fewer than 20 employees and more than half had annual revenues between $100,000 and $500,000. TD Bank is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. Find out more at
Yahoo
01-05-2025
- Business
- Yahoo
Small Business Owners Are Not as Financially Prepared as They May Think, According to TD Bank Survey
Vast majority (82%) of small business owners indicate that they are likely to consider applying for a loan or line of credit but overlook the value of expert financial advice CHERRY HILL, N.J., May 01, 2025--(BUSINESS WIRE)--Across the U.S., at a baseline, nearly all (94%) small business owners (SBOs) believe that their company is financially prepared for the next 12 to 18 months. But peel back the layers, and SBOs may not actually be as ready as they imply. Nearly three-fourths (72%) of owners believe they can withstand revenue shortfalls for just two quarters – or less – before becoming concerned about the future of their business – and 43% of owners said their business would not survive if they fell short on revenue for three to four quarters. This is according to TD Bank's inaugural Financial Preparedness Survey: Small Businesses Owners' Report, which surveyed U.S. small business owners' current confidence in their financial preparedness. "Now, more than ever, it is critical for business owners to be financially prepared," said Andy Bregenzer, Co-Head of U.S. Commercial Banking at TD Bank. "Business owners who invest the time to create a financial plan will be better positioned to face challenges and seize new opportunities. Financial preparedness is not just about business survival but also about positioning your business to grow with confidence no matter what the future holds." SBOs: Don't get ready, stay ready Luckily, financial preparedness is top of mind for SBOs, with nearly all respondents (99%) assessing their financial preparedness quarterly or more frequently. Cash flow is key, with more than half (52%) saying a positive cash flow is an indicator of financial preparedness, while 37% believe it's having enough capital to weather emergencies. To support their financial preparedness goals over the next year and a half, a vast majority (82%) of SBOs indicate that they are likely to consider applying for a loan or line of credit. The top goals for this loan or line of credit include maintaining company operations (38%), undertaking a significant financial technology upgrade or overhaul (33%), expanding into new market verticals (33%), and making payroll (32%). The majority (87%) are confident their applications will be approved. Ask the Experts To support their financial goals, owners acknowledge the importance of financial guidance and are seeking financial advice on best practices for running their business. However, less than half (46%) are turning to a banking or financial partner. 45% of SBOs are consulting other small business owners and another 30% are utilizing generative AI tools like ChatGPT. "Small business owners don't have to face challenges alone. Bankers are true small business experts – we've seen it all, and we know how to help. SBOs who are going at it alone are leaving good advice – and potential opportunities – on the table," said Bregenzer. What's the currency of business? Trust. Trusted financial partners like TD Bank, can offer guidance as small businesses navigate shifting economies. This includes education on financial resources and types of funding, like access to SBA loans, asset-based lending and flexible lines of credit, to support both longer-term purchases and day-to-day operations. In times of uncertainty and frequent change, access to lines of credit enable business owners to respond swiftly. One such client is the attorney and real estate developer duo of Eric Jenkins and Earle Horton, who envisioned turning a historic building on Washington, D.C.'s former Walter Reed Army Medical Center campus into a neighborhood hardware store, café, and offices. This ambitious project to create Hazel's Hardware and cafe, required an innovative blend of New Markets Tax Credits (NMTC) with a U.S. Small Business Administration (SBA) construction-to-permanent loan — a combination most banks couldn't structure. "TD's ability to coordinate multiple funding sources made the complex project feasible. There were half a dozen times when TD could have walked away from this deal, but they didn't," says Eric Jenkins. "Unlike other banks, TD stood out as having the resources to provide the solutions we needed. They had a super-strong SBA team plus a super-strong New Markets Tax Credit team, which was exactly what we needed." Beyond financial offerings, banking partners also serve as a key knowledge source. By understanding the structure of small businesses and their ongoing business relationships, banking partners help owners identify opportunities for growth and capitalize on them quickly. "Despite continued concerns about economic pressures, interest rates and inflation, small business owners prove time and time again that they're a resilient group – SBOs are optimistic about their success, they work hard for it, and they deserve a trusted banker who will navigate uncertainty alongside them," said Bregenzer. Survey Methodology Wakefield Research conducted the Financial Preparedness Survey: Small Businesses Owners' Report, among small business owners (100 employees or fewer), with revenues of $100,000+ annually, 250 nationwide respondents and 150 respondents in each of the following regions: New York City, Boston, Washington D.C., South Florida and Greater Philadelphia, between March 7th and March 20th, 2025, using an email invitation and an online survey. About Wakefield Research Wakefield Research is a leading, independent provider of quantitative, qualitative, and hybrid market research for thought leadership and strategic insights. Wakefield Research is a partner to the world's leading brands and agencies, including 50 of the Fortune 100. We conduct research in nearly 100 countries and our surveys appear regularly in top-tier media. Learn more at About TD Bank, America's Most Convenient Bank® TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit Find TD Bank on Facebook at and on Instagram at TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit View source version on Contacts Media: Oindrila HazraTD BankCorporate Communications Manager II – Commercial and Small Business
The Market Online
01-05-2025
- Business
- The Market Online
New survey finds small businesses owners not as financially prepared as they think
A recent survey prepared by Toronto-Dominion Bank stock (TSX:TD) revealed that small business owners across the United States may not be as financially prepared as they believe The inaugural Financial Preparedness Survey: Small Businesses Owners' Report highlights a significant gap between perceived and actual financial readiness among small business owners 43 per cent of owners indicated that their business would not survive if they fell short on revenue for three to four months Toronto-Dominion Bank stock (TSX:TD) opened trading C$87.96 A recent survey revealed that small business owners across the United States may not be as financially prepared as they believe. The inaugural Financial Preparedness Survey: Small Businesses Owners' Report highlights a significant gap between perceived and actual financial readiness among small business owners (SBOs). At a baseline, nearly all SBOs (94 per cent) express confidence in their company's financial preparedness for the next 12 to 18 months. However, a deeper analysis shows that this confidence might be misplaced. The survey found that nearly three-fourths (72 per cent) of owners believe they can withstand revenue shortfalls for just two quarters or less before becoming concerned about the future of their business. 43 per cent of owners indicated that their business would not survive if they fell short on revenue for three to four months. Despite these concerns, financial preparedness remains a priority for SBOs, with nearly all respondents (99 per cent) assessing their financial status quarterly or more frequently. Cash flow is a critical indicator, with more than half (52 per cent) of respondents citing positive cash flow as a sign of financial preparedness, while 37 per cent believe having enough capital to weather emergencies is crucial. To bolster their financial preparedness over the next year and a half, a vast majority (82 per cent) of SBOs are likely to consider applying for a loan or line of credit. The primary goals for these financial instruments include maintaining company operations (38 per cent), undertaking significant financial technology upgrades (33 per cent), expanding into new market verticals (33 per cent), and making payroll (32 per cent). Encouragingly, 87 per cent of SBOs are confident their applications will be approved. The survey, conducted by TD Bank (TSX:TD), also points the importance of financial guidance, with SBOs seeking advice on best practices for running their business. However, less than half (46 per cent) are turning to a banking or financial partner for this guidance. Instead, 45 per cent of SBOs are consulting other small business owners, and another 30 per cent are utilizing generative AI tools like ChatGPT. Conducted by Wakefield Research, the Financial Preparedness Survey: Small Businesses Owners' Report surveyed 250 nationwide respondents and 150 respondents among small business owners with 100 employees or fewer and annual revenues of $100,000 or more. Key findings: 94 per cent of SBOs believe their company is financially prepared for the next 12 to 18 months. of SBOs believe their company is financially prepared for the next 12 to 18 months. 72 per cent of SBOs can withstand revenue shortfalls for just two quarters or less. of SBOs can withstand revenue shortfalls for just two quarters or less. 43 per cent of SBOs would not survive a revenue shortfall of three to four months. of SBOs would not survive a revenue shortfall of three to four months. 99 per cent of SBOs assess their financial preparedness quarterly or more frequently. of SBOs assess their financial preparedness quarterly or more frequently. 52 per cent of SBOs cite positive cash flow as a key indicator of financial preparedness. of SBOs cite positive cash flow as a key indicator of financial preparedness. 82 per cent of SBOs are likely to apply for a loan or line of credit in the next 18 months. of SBOs are likely to apply for a loan or line of credit in the next 18 months. 87 per cent of SBOs are confident their loan applications will be approved. of SBOs are confident their loan applications will be approved. 46 per cent of SBOs seek financial guidance from banking or financial partners. of SBOs seek financial guidance from banking or financial partners. 30 per cent of SBOs use generative AI tools like ChatGPT for financial advice. This survey exposes the need for small business owners to reassess their financial strategies and seek reliable guidance to ensure long-term sustainability. 'Now, more than ever, it is critical for business owners to be financially prepared,' Andy Bregenzer, co-head of U.S. commercial banking at TD Bank said in a media release about this survey. 'Business owners who invest the time to create a financial plan will be better positioned to face challenges and seize new opportunities. Financial preparedness is not just about business survival but also about positioning your business to grow with confidence no matter what the future holds.' The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. TD is the sixth largest bank in North America by assets and serves more than 27.5 million customers. TD had $1.97 trillion in assets on April 30, 2024. Toronto-Dominion Bank stock (TSX:TD) opened 0.14 of a per cent lower C$87.96 and has climbed 10.74 per cent since this time last year. Join the discussion: Find out what everybody's saying about this company on the Toronto-Dominion Bank Bullboard, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here. (Top image via Adobe Stock.)
New York Post
26-04-2025
- Business
- New York Post
Business owners reveal their biggest hurdles in setting up shop in the US
From working too many hours to being let down by a vendor and underestimating costs, a new survey reveals the biggest hurdles business owners faced when first starting out. A survey of 1,000 small business owners (SBOs) and freelancers pinpointed the things they wish they'd known from the start. Advertisement Results showed financial missteps as one of the most common challenges SBOs faced – underestimating just how much things would cost and ensuring proper cash flow impacted over a third of SBOs (36%) early on. Wishing they'd had more support or been able to do more marketing was the second-most mentioned area (29%), while being able to maintain a good work-life balance was something over one in four (27%) business owners and freelancers said they found difficult to manage. 4 A survey of 1,000 small business owners (SBOs) and freelancers pinpointed the things they wish they'd known from the start. While the struggle to attain work-life balance affected many new entrepreneurs, results showed a supportive community can really make the difference – eight in 10 SBOs attribute much of their success to their network of partners and vendors. Advertisement The survey conducted by Talker Research on behalf of HP for its Instant Ink service found that while many SBOs faced early adversity, they built confidence in their leadership ability – the average SBO surveyed said it took just over two years to feel like a fully confident business owner. That experience is hard-earned – the average SBO estimates they put in just over 50 hours a week to launch their business or establish themself as a freelancer in their field. 4 Results showed financial missteps as one of the most common challenges SBOs faced. Pormezz – A quarter (27%) of owners said 60-hour weeks or longer were the norm, while one in six (16%) were clocking more than 70 hours. Advertisement 'Having a trusted tech partner is essential for small business owners,' said Diana Sroka, SVP of consumer services product for HP. 'With limited time and budget, it's important to find solutions that are smart, flexible and adaptable to the unique needs of each business.' Those long weeks show a small business owner must often wear many hats. In fact, the average owner estimates they did the equivalent of three full-time roles, with customer service, operations and sales being the most common areas SBOs said they had to manage themselves. That places even more emphasis on the need for strong partnerships and a reliable network, yet many SBOs report being let down. Two in five (38%) said a vendor or partner had failed them in some way that significantly impacted their business. 4 The average SBO estimates they put in just over 50 hours a week to launch their business or establish themself as a freelancer in their field. Advertisement It's no surprise then that 79% claimed having a trusted network of partners and vendors is important to their success – they even ranked having good connections in business as more important than having sufficient cash flow when evaluating what contributed to performance (76% vs. 64%). Interestingly, despite the hardships, 41% said they wouldn't change anything at all in their entrepreneurial journey because they felt those experiences helped them grow more resilient and were an integral part of their learning. And to go it alone, you need the vision – when asked what their most indispensable resource was as an entrepreneur, SBOs overwhelmingly cited 'my own creativity.' 'In the unpredictable world of entrepreneurship, the importance of strong partnerships – especially with a reliable tech partner – cannot be overstated,' added Sroka. 'Too many small business owners face setbacks due to broken trust, missed expectations and technology failures. Building a strong tech partnership is crucial to keeping business moving forward in a constantly evolving landscape.' 4 It's no surprise that 79% claimed having a trusted network of partners and vendors is important to their success. BIGGEST HURDLES FACED BY SMALL BUSINESS OWNERS Underestimating costs (36%) Not doing enough marketing (29%) Ignoring work-life balance (27%) Pricing products or services incorrectly (25%) Not doing enough research on the market (15%) Choosing the wrong vendors or partners (14%) Not investing enough in technology (10%) Not delegating (10%) Neglecting customer experience (7%) Not outsourcing (7%) Skimping on legal and administrative essentials (6%) Advertisement Survey methodology: Talker Research surveyed 1,000 small business owners (SBOs) and freelancers (split 50/50); the survey was commissioned by HP and administered and conducted online by Talker Research between March 17 – March 26, 2025.
