Small Business Owner Parents More Optimistic About Children’s Future

For the survey, a sample of 1,059 small business owners were interviewed, including a subset of 586 small business owner parents who have children under the age of 18 living in their home. The survey was conducted in January 2018 by Ipsos and sponsored by New York Life.

Business = Small Business Owner’s Personal Pension

“Small business owners are counting on their business to provide for them in retirement. For many entrepreneurs, their business will serve as their own personal pension and what they rely on to provide retirement income, with 42 percent reporting that their business is their retirement plan. Small business owners know how important it is to protect their retirement as well; 66 percent say they need to do more to ensure they have adequate income from their business in retirement and 54 percent have a backup plan if they are unable to sell their business or if the proceeds are not sufficient for retirement,” added Madgett.

Taking steps to ensure their finances are in order will be important especially to the 51 percent who report that they plan to retire at the age of 65.

2018 Focus is on the Future; Short Term Growth Plans Have Slowed Since 2017

Financial expectations for small businesses in 2018 remain high with 61 percent of small business owners optimistic. This mirrors the sentiment recorded in last year’s New York Life survey of small business owners, where 60 percent reported expecting business to improve heading into 2017.

More than 70 percent of small business owners state that technology will have a positive impact on their business in 2018. Forty-six percent feel that tax policy is a positive for their business. Here is how other aspects ranked in terms of a positive impact on their business in 2018:

Interestingly, there are some differences since last year in terms of what small business owners will focus on when it comes to planning. With an eye toward the future, a large percentage, 62 percent, of small business owners plan to address business continuation planning in 2018 and a similar amount, 66 percent, of small business owner parents plan to involve their children in their business this year. But, short term growth plans have slowed somewhat since last year with fewer planning to seek additional capital (45% vs. 55%), hire more employees (42% vs. 52%), and grow their companies (57% vs. 62%).

Yoda – Don’t Try. Do

When small business owners are asked what Star Wars character they most identify with when it comes to financial planning, rises to the top, Yoda does.

“A famous quote that resonates with me when working with small business owners every day is something that Yoda says all the time: “Do or do not, there is no try.” Most successful small business owners I talk to believe that failure is not an option. They are not starting a business to try to be successful, instead, they will do everything needed to be successful,” said Madgett. “Also, I am not surprised to see Princess Leia and Hans Solo next up – the adventurous and risk-taking aspects of those personas are also very much a part of the small business owners I meet.”