CHERRY HILL, N.J., May 4, 2015 /PRNewswire/ -- Small business
owners are confident in many key areas of running their businesses,
including handling finances, knowing when to hire and managing
employees, according to a new survey from TD Bank, America's Most
Convenient Bank®. Life after entrepreneurship and
personal finances present a different story: More than one-quarter
(26 percent) of small business owners are not confident they will
have enough savings to retire comfortably.
Baby boomers, for whom retirement is on the horizon, are the
least confident when it comes to their retirement savings, with 28
percent saying they are not very or not at all confident that they
have enough savings, compared with 21 percent of millennials. A key
factor in this lack of confidence could be that on average, baby
boomers started their current business at 43 years old, whereas
millennials began their business at an average age of 26 years old,
giving these younger adults more time to grow the business and
invest in their retirement funds.
The TD Bank small business survey asked more than 660 small
business owners nationwide about their management experience, how
and when they started their business, confidence in major business
tasks and areas where they need advice or help.
In terms of plans for retirement, nearly half (47 percent) of
business owners said they do not yet have a plan in place, while
approximately one-quarter indicated they would close the business.
Furthermore, 27 percent of business owners who started the company
from scratch said they plan to close their business when they
retire, compared with only 8 percent of those who took over an
existing business. Fifteen percent of business owners overall said
they would transfer ownership of the business to family or
co-workers.
"Building a small business is hard work, and it can be easy to
get caught up in daily tasks such as paying invoices or increasing
sales, but smart business operations need to consider the future,
including the retirement of the owner," said Jay DesMarteau, Head of Small Business Banking,
TD Bank. "Just as those in the workforce should invest in
themselves through retirement savings, business owners need to have
conversations about retirement and prepare for the future to ease
the transition, whether that be closing or selling the business or
passing it on to family member."
Small Business Management Skills
According to the survey, 72 percent of small business owners
were employed in the workforce before opening their business, but
just 51 percent had management experience or expertise.
Generationally, 63 percent of millennials started their business
without management experience, compared with only 49 percent of gen
Xers and 46 percent of baby boomers.
Despite only one half of small business owners having previous
management experience, 84 percent personally handle
finances/accounting for their business, and 72 percent are
extremely /very confident in their ability to do so. Millennial
small business owners are the least confident in this area, with 60
percent saying they are extremely/very confident, compared with 72
percent of gen Xers and 76 percent of baby boomers.
To learn more about managing their business, small business
owners turn to a variety of resources. Twenty-four percent of
millennials say they have used a local or regional small business
association, 21 percent of gen Xers have taken a college financial
or small business course and 24 percent of baby boomers have
attended a financial seminar or workshop. Even though some business
owners sought some type of continuing education or professional
development, 56 percent of all respondents have not taken any
action to learn more about managing their business.
Small Business Owners Seek Advice
Although many small business owners indicated a high level of
confidence in handling finances, human resources and other aspects
of business management, many are still looking for advice on how to
run their businesses. Millennials are most likely to seek insights
on how to expand /grow their business (43 percent) and how to
handle finances/accounting (35 percent), while gen Xers and baby
boomers are most likely to want help with marketing/advertising
strategies for their business (35 percent and 32 percent,
respectively).
The survey revealed that the majority of business owners (73
percent) do not have a financial advisor or dedicated banker for
financial planning and small business needs. Instead, most small
business owners go to family and friends for advice (45 percent),
followed by the Internet (36 percent).
"Small business owners are likely to be experts in their
respective fields, whether it's app development, dentistry or
catering, but they might need a hand from an outside expert in
knowing how to expand, get a loan or buy new equipment," DesMarteau
said. "By engaging a financial advisor, small business owners
unlock access to custom tools and advice for managing their
finances, including knowing when to seek additional funding to help
them grow smartly."
To learn more about TD Bank, America's Most Convenient Bank,
stop by a store, visit us at www.tdbank.com, find us on Facebook at
www.facebook.com/TDBank or on Twitter at
www.twitter.com/TDBank_US.
Survey Methodology
The study was conducted among a
nationally representative group of small business owners
between March 30 and April 6, 2015.
Included were small businesses of $5
million or less in revenue, and 100 employees or less. The
sample size of 667 has a margin of error of +/- 3.8 percent. The
survey was conducted by Vision Critical.
About Vision Critical
Vision Critical provides a cloud-based customer intelligence
platform that helps companies build engaged, secure communities of
customers they can use continuously, across the enterprise, for
ongoing, real-time feedback and insight.
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., providing more than 8 million customers with a
full range of retail, small business and commercial banking
products and services at approximately 1,300 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle financing and
dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J.
To learn more, visit www.tdbank.com. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD." To learn more, visit
www.td.com.
Logo - http://photos.prnewswire.com/prnh/20140527/91343
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/new-survey-finds-small-business-owners-uncertain-about-retirement-plan-finances-300076411.html
SOURCE TD Bank