Efficiency Path to Profitability in 2012

According to the small and medium-sized business experts at Ephor Group, American businesses are vulnerable to a double-dip recession and efficiency is the only path to profitability in 2012. 

In February 2011, the economic outlook for SMEs experienced double-dip recessionary pressures as a result of lack of access to capital and suppressed levels of B2B spending.

An Ephor Group study of small business owners conducted in Q2 2011 found the majority of businesses are under-performing (only 1 in 5 are “outperforming”). Ephor executives go on to note:

[quote]The symptoms of a double-dip environment are clearly in place, and this downturn will continue for a minimum of the next 10 quarters.[/quote]

8 Signs the Double-Dip Recession has Already Begun

1. Inflation is occurring.
2. Investments have begun to yield less and become more volatile.
3. Oil prices have impacted the economy.
4. The federal budget deficit is not helping.
5. Unemployment is one of the biggest challenges the economy faces.
6. The debt ceiling accentuates the problem.
7. Limited access to credit lines limits small business.
8. Housing is a drag on the economy.

The Good News: Some Industries are Still Poised for Growth

With widespread SaaS (Stands for Software As A Service) adoption, the outsourcing model is in full swing off-loading administrative, back-office and marketing/advertising work to specialists who can do it cheaper and better while ensuring minimal fixed costs.

In fact, there is a direct correlation between industries embracing SaaS and outsourcing and industries poised for growth. If we lay these on top of one another, the following industries come out on top.

• Processing of specific commodities
• Energy & Utilities
• Healthcare & Healthcare Services
• Technology
• Scientific and Engineering
• Media & Advertising

Healthcare and technology, specifically, show constant growth year-over-year due to the diversity of the industry and the shear volume of demand making them top growth sectors of 2012.

Key Takeaway: Efficiency through Outsourcing = 2012 Profitability

The instruction set to SMBs from Ephor’s study is clear: get more efficient now; outsource non-core activities now; get more profitable now.