When small business owners are confident in the future of their companies, this can mean a few different things. One, it can indicate that the economy is doing particularly well. It can also show that the individual startup, or at least the industry as a whole, is performing positively as well.
This might be an indication that retailers should start taking some chances. This is the time when they might want to expand their floor plan, purchase a secondary location, try out a new product line and hire new employees, among other actions. Also, if a rise in confidence occurs before Christmas, this can mean good things for the upcoming holiday.
This is the current sentiment in Canada. While companies took a turn for the worst during the Great Recession, all of this is changing now. August was a particularly good month for Canadian small business owners, paving the way to the future.
Confidence increased in Boston
According to the Canadian Federation of Independent Business's (CFIB) Business Barometer index, optimism rose by 1.7 points last month to hit 65.9 points, which was the highest mark since February.
This metric did differ by province, however. For instance, the CFIB found that owners in Saskatchewan were the most optimistic, logging a 70.7 metric on the index, followed closely by Newfoundland and Labrador, which averaged 70.4 points. That being said, business leaders on Prince Edward Island aren't too confident in their current atmosphere, as they clocked a 50.0 point index.
These scores also differ by industry as well, the organization revealed.
"August has been a pretty good month for businesses engaged in agriculture, manufacturing, retail, professional services and hospitality," noted CFIB Chief Economist and Vice President Ted Mallett. "On the other hand, we're seeing uneven or weak outlooks for construction and transportation."
What does this mean for owners?
When confidence is high like this, this could be the time to take some risks, as there's some assurance that the market will continue to allow positive gains. On the other hand, cautious leaders might want to take this time period as a prime opportunity to regroup and get ready for the winter influx of customers. Using these few weeks to craft marketing campaigns, shore up security provisions and ensure financial programs are working properly might be a good way to handle the next few months until the hectic season begins.