We talk a lot about different kinds of technology that can help your small business, and we might have a very useful one for you. Kabbage is a small business lending platform, and it has released a free tool called the Small Business Index. So often, we, as small business owners, struggle to find data how our performance compares to our peers. This free tool provides live data on more than 200,000 companies so we can see how our business is performing vs. our industry peers in our state and across the country. It might help you when it comes to long-term success for your business.
Most of the research available is static and survey based, so it lacks both timeliness and accuracy. This quote, from Forbes, may answer some of your questions
"The preponderance of small business health reports are reliant on survey responses or static research," says David Snitkof, head of data analytics and strategy at Kabbage. "This is the only tool available with an ongoing pulse on the financial health of local American small businesses, such as restaurants, hair salons, dentists, lawn care providers, boutique shops and more."
This tool allows you to choose between 15 industry options over a 3 year range, by state or by the US. It's real time and data driven. Therefore, it both timely and more accurate.
Growth without context is just a number. For example, let's say' your business grew 15%' in the past year. That's great, right? Well, maybe. If you grew at 15%, but the average for your industry in your state was 20%, then no, it's not. You're actually lagging, so there are probably things you should be doing that your are not. Conversely, if the average was 10%, then you are doing some things really well. You might want to consider what's making you standout, so you can do more of it. You can take the tips from Kabbage and see what it might do for you.
In 2019, the average small business grew by 19.37% based on the small businesses analyzed within the Kabbage Small Business Revenue Index. That's pretty amazing when you think about the average GDP growth has been less than 3%. This illustrates the impact that small business has on fueling the growth of the economy. Research shows that we are the driving forces of job creation. We employ nearly ½ the US workforce.
We love the Small Business Index because it a powerful tool for both ourselves and our clients to understand how we are performing vs. our peers. This is incredible valuable information that can help us to create more effective strategies and to focus on the right areas for growth.
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkedIn profile