LOMBARD, Ill. (5/28/09)--Raddon Financial Group (RFG) recently formed a small business research consortium to analyze how small businesses perceive financial institutions and use financial products and services. Raddon is a provider of research-based solutions to financial institutions--including credit unions--and a strategic business unit of Open Solutions Inc. The research program comprises a semi-annual nationwide survey of small businesses. Among the findings from a March survey:
* This year, 30% of small businesses with annual sales of $500,000 to $10 million plan to lay off employees; * Of those surveyed, 52% will freeze pay and 41% plan to eliminate bonuses in 2009; * Small business cost-cutting measures extend to health insurance benefits and 401(k) matches; and * Nine percent of small businesses expect to reduce operating expenses by closing or consolidating facilities.
Although many small businesses are cutting costs to cope with the current economic environment, 18% expect that their annual sales will increase in 2009, while 37% expect flat sales. However, 45% expect sales to decrease this year. RFG developed the research to help participating institutions such as credit unions increase their small business relationships, evaluate competitive strategies, identify new product ideas and develop a segmentation approach to acquire and retain customers.