The last few years have been very strong for small businesses across the country, and that has certainly continued as 2014 draws to a close. As a consequence, many owners across the country now seem to be feeling a lot better about their chances for future improvement in the first several months of next year as well.

Overall, the amount of optimism held by small business owners nationwide crept closer to equilibrium, with the latest index climbing two full points to a reading of 98.1, according to the latest Small Business Optimism Index from the National Federation of Independent Business. That’s only slightly lower than the average levels seen for the years ahead of the recent major financial downturn.

That increase was driven mostly by the fact that 16 percent more current owners expect conditions to improve for the broader economy than they did as recently as October, and 5 percent more believe that their sales number will improve as well, the report said. Further, 11 percent now say they plan to increase employment over the next six months, up from 10 percent two months earlier.

“Expectations for business conditions six months out rose a huge 16 percentage points while expectations for real sales volumes rose 5 percentage points,” said Bill Dunkelberg, NFIB chief economist. “Unfortunately, the Index did not sprint past the average which is typical of a strong recovery before settling back down. Instead it’s been a slow slog just to reach this point. It’s a little early to declare a breakout. This performance will have to be consolidated by several more positive readings before owners are confident to hire more employees and expand their business. But it’s a good sign that comes at a good time for small business.”

Negatives largely disappearing from the market
Meanwhile, only three of the various aspects examined by the index remained in the red in December, the report said. Current credit conditions remain a little dour (minus-6 percent and falling), as do feelings about current inventory (holding steady at minus-3 percent). And while earnings trends are still at minus-17 percent, it’s at least trending up; that was an increase from minus-20 percent in October.

Owners who want to position their companies for the most success going forward may want to consider the benefits of cutting the costs they face regularly, including those for small business insurance. Finding more affordable general liability insurance coverage, for instance, could save thousands annually.

The last few years have been very strong for small businesses across the country, and that has certainly continued as 2014 draws to a close. As a consequence, many owners across the country now seem to be feeling a lot better about their chances for future improvement in the first several months of next year as well.

Overall, the amount of optimism held by small business owners nationwide crept closer to equilibrium, with the latest index climbing two full points to a reading of 98.1, according to the latest Small Business Optimism Index from the National Federation of Independent Business. That’s only slightly lower than the average levels seen for the years ahead of the recent major financial downturn.

That increase was driven mostly by the fact that 16 percent more current owners expect conditions to improve for the broader economy than they did as recently as October, and 5 percent more believe that their sales number will improve as well, the report said. Further, 11 percent now say they plan to increase employment over the next six months, up from 10 percent two months earlier.

“Expectations for business conditions six months out rose a huge 16 percentage points while expectations for real sales volumes rose 5 percentage points,” said Bill Dunkelberg, NFIB chief economist. “Unfortunately, the Index did not sprint past the average which is typical of a strong recovery before settling back down. Instead it’s been a slow slog just to reach this point. It’s a little early to declare a breakout. This performance will have to be consolidated by several more positive readings before owners are confident to hire more employees and expand their business. But it’s a good sign that comes at a good time for small business.”

Negatives largely disappearing from the market
Meanwhile, only three of the various aspects examined by the index remained in the red in December, the report said. Current credit conditions remain a little dour (minus-6 percent and falling), as do feelings about current inventory (holding steady at minus-3 percent). And while earnings trends are still at minus-17 percent, it’s at least trending up; that was an increase from minus-20 percent in October.

Owners who want to position their companies for the most success going forward may want to consider the benefits of cutting the costs they face regularly, including those for small business insurance. Finding more affordable general liability insurance coverage, for instance, could save thousands annually.