Graph displaying the results of small business survey that asked what would be done with a significant profit increase.
Although most of us might assume that growth-oriented owners would plow big profits back into their businesses, a recent survey by the American Institute of Certified Public Accountants (AICPA) found that small-business owners were more interested in using earnings to reduce their debt loads -- perhaps in response to last summer's climate of rising interest rates.
What would you do with a
significant profit increase?*
% of respondents
Pay down debt
Increase owner salaries/bonuses
Increase retirement-plan funds
Hire new people
Fund product research and development
Increase employee salaries/benefits
Make capital improvements
Build cash reserves
Note: Multiple answers were permitted.
Source: "Small Business Survey," AICPA Private Companies Practice Section, New York City, July 1994.