5. There will be no significant tax increases. I see no significant tax increases on the table this year. In 2013, we absorbed increases to capital gains and individual rates (now at 39.6 percent for top earners), decreases in deductions, and added taxes for Medicare and unearned income. And we’ll keep paying those in 2014. But there’s nothing significantly new on the horizon.
6. It should be easier to get financing. The banking industry has recovered from the last crisis. The economy has moderately improved. Rates are low. Banks’ balance sheets look better. Your balance sheet looks better.
The venture-capital industry is flush and looking for more opportunities. There were many initial public offerings in 2013, and many more scheduled for 2014. This will be a good year to look for cash, new financing, or investors. A healthy balance sheet is still key to your banking relationship.
7. You will pay your employees more. The U.S. unemployment rate is down. Economic activity is moderately rising. Wages have been depressed for years. But in 2014 the competition for good people will continue to heat up. Skilled workers will go at a premium. Others will ask, and receive, better increases than in prior years. It’s quickly becoming a seller’s market for employees, and that means business owners will pay a premium this year.
8. Your cost of doing business in the cloud will continue to decrease. Research firm Gartner forecasts that the market for software as a service applications will top $22 billion through 2015, up from more than $14 billion in 2012. Cloud-based applications are proliferating. The number of companies that offer cloud-based managed services is increasing. And so is the number of small companies that are embracing these technologies.
Companies like Amazon Web Services are cutting monthly fees for services that will be popular for small businesses. Costs are declining and will continue to go down in 2014. This year, you move more to the cloud.
9. Your customers will be even more educated. End users, and especially clients and projects with a strong IT influence, will continue to educate themselves on your systems and solutions. Buying decisions will be influenced by this, and more buyers will test your expertise and service capabilities.
We will need to stay ahead of this and continue to become IT-savvy solutions providers. We’ll be discussing this topic in detail at our 16th annual Business & Leadership Conference in Dallas on Feb. 27—March 1. Plan to attend to learn more about what your clients will expect from you in regards to IT.
Chuck Wilson worked as a sound contractor for more than 20 years and is now the director of the National Systems Contractors Association (NSCA).
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