Despite a lack of optimism about the U.S. economy, an increasing number of small businesses expect stable or improving revenue performance in the early months of 2012, according to a new survey from TD Bank, America's Most Convenient Bank.

TD Bank's survey – which polled 300 small business owners within the bank's Maine to Florida footprint – revealed that 74% of small businesses believe they will meet or exceed revenue projections in the first quarter of 2012. This
indicates increasing confidence, as 61% met or exceeded revenue projections during the last quarter of 2011.
 
Although slightly under half (48%) of small business owners polled are optimistic about the U.S. economy, most are committed to investing in their business. An encouraging 85% plan to keep staffing levels the same over the next quarter, with 20% looking to hire at least one employee, and 80% plan to maintain or increase capital investments up to 15% or more.
 
"The words 'cautious optimism' are what we've been hearing from our small business customers when discussing their early 2012 outlook," said Fred Graziano, Head of Commercial Regional Banking, Government Banking and Small Business, TD Bank. "Despite feeling somewhat uneasy about the U.S. economy, many are hopeful that they are in a position to boost their revenue stream and possibly invest in their business in the upcoming months."
 
Aside from economic uncertainty, polled small business owners believe cash flow management (25%) will be the biggest challenge in the first half of 2012 – followed by lackluster sales (19%), expense management (15%), and increased competition (12%). The remaining concerns were debt management (9%), working longer hours (9%), access to credit (7%) and employee layoffs (3%).

"Accurately preparing cash flow projections a year in advance is good strategy to fend off the challenges of operating a business in a slow-growth economy," said Graziano. "Our dedicated small business team will be out in our communities offering advice and providing solutions to meet whatever needs entrepreneurs have in order to make 2012 a great year for their business."