If I Had a Great Year, I'd . . .
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||46.2%|
|Increase owner salaries/bonuses||20.3%|
|Increase retirement-plan funds||13.2%|
|Hire new people||13.2%|
|Fund product research and development||5.5%|
|Increase employee salaries/benefits||2.2%|
|Make capital improvements||2.2%|
|Build cash reserves||1.1%|
Note: Multiple answers were permitted.
Source: "Small Business Survey," AICPA Private Companies Practice Section, New York City, July 1994.* * *