Energy's Place Within Economic Recovery Strategy

A survey of over 100 business owners emphasized cost cutting and innovation as a means to survive this year's economic turmoil. "Energy" is a cost-cutting option, no? Here are the survey highlights:

Postitive outlook; long road ahead. A majority (57%) of business owners see business strengthening, but feel there is a long road ahead. One-fourth of those surveyed believe we have not “seen the bottom” yet.

Most owners take proactive measures to offset declines. Many (77%) owners are taking proactive actions to offset their sales declines. The top five initiatives are:
1. Cost Cutting: 70%
2. Increase advertising/marketing expense: 51%
3. Product innovation: 48%
4. Layoffs: 37%
5. Adjust pricing: 37%

Business growth plans abound. Over 90% of owners believed they can and would initiate plans to grow their business. The top five methods to accomplish this goal were:
1, Grow through increased marketing / promotional efforts: 60%
2. Enhancements to current products/services: 46%
3. New product lines: 37%
4. Increase sales force: 34%
5. New geographic areas: 30%

Owners looking for acquisitions to increase market share %. Growth by merger or acquisition was only ranked 7th (14%) on the methods to achieve growth, and the reasons given for doing so are as follows:
• Increase Market Share: 56%
• Leverage overhead / operations synergies: 47%
• Access to new markets: 47%
• Acquisition of key personnel/gain bench strength: 34%
• Expand product lines and service: 34%
• Leverage Sales Channels: 25%
• New Technologies: 13%
• Acquire established brands: 9%

Finally, as to how businesses rated their ability to obtain necessary funding capital, 60% of respondents were generally positive (6 or higher on a scale of 1-10) that they could raise capital as needed.

This survey is courtesy of Steve Zacharias at Transact Capital Partners. See the full report.