Business owners: 2013 looks better

Small business owners worldwide emitted a whiff of optimism on a range of issues in a new survey from business coaching firm EMyth and PixelSpoke, a Portland, Ore.-based Web design and ad agency.

Some examples of the sanguine feelings, from The State of the Business Owner 2013, include:

- Nearly two-thirds of respondents, 63%, think the global economy will get better;
- Respondents are 25% more optimistic about the economy for 2013 than they were for 2012;
- More than half, 60%, say 2012 was more profitable than 2011.

The “yeah, but,” portion of the survey relates to cash flow: A solid majority, 80%, say inconsistent cash flow remains a priority challenge. That uncertainty manifests itself in areas like payroll, where 57% of respondents gave raises of 2% or less in 2012.

Another part of the survey probes where business owners find the most effective marketing techniques. While not surprising, the results validate a bedrock belief, that word of mouth is the best way to obtain new business. That's why 77.2% of respondents say referrals are a highly effective marketing technique.

Three of the next four most effective methods were all related to the Internet. A business website was second, social media was third and search engine optimization (SEO) was fifth, slightly behind advertising.

While online marketing in some fashion was a clear leader, there's still some room left for traditionalists: Nearly 20% of the respondents, 17.8%, say cold calling remains a highly effective marketing tool.