Opinions Divided On Interest Rate Increase
Impact, According to International Profit Associates
Small Business Research Board Report
BUFFALO GROVE, IL (August 5, 2004)--The majority of small businesses (69%)
met or exceeded their expectations during the first half of 2004 and even
a greater number (88%) are forecasting that they will meet or exceed their
projections for the second half of the year, according to the
International Profit Associates Small Business Research Board (IPA SBRB)
report released today.
 The IPA SBRB report further indicates that while owners and managers of
small businesses are optimistic about prospects for the remainder of 2004,
most are keeping tight control on capital spending. The small businesses
responding to the national "IPA SBRB First Half 2004 Business Assessment
Study" found that 53% will maintain their current level of capital
spending through year end, while 15% will decrease spending from original
budgets. About one-third (31%) intend to increase capital spending.
"It is interesting to note that many businesses expect to improve upon
their forecasts without adding to their capital commitments," said Gregg
Steinberg, President of International Profit Associates, the leading
provider of management consulting services to small businesses in the U.
S.
"While there are many business owners and managers who will support their
projections by boosting capital expenses, there are many that believe
their business will improve based upon the natural progression of the
economy or they have excess capability already built-in to meet future
demands," Steinberg added.
 The IPA SBRB poll showed that 37% of the small businesses participating in
the study met first half 2004 expectations while 32% exceeded their
expectations. For the second half of the year, 37% predicted they will
meet their expectations, 29% will show improvement of up to 10% and
another 22% will improve their businesses by more than 10%.
Study participants were divided on the impact of slowly escalating loan
interest rates through year-end. The IPA SBRB poll indicated that 55% of
those responding said increasing interest rates by .25% up to 1% will not
have an impact. However, 31% of the poll participants said rising rates
will have a negative impact while 10% said that rising rates will help
their businesses.
 The International Profit Associates Small Business Research Board was
created to determine the opinions of small business owners and managers on
a wide variety of topics related to their own business as well as national
and international issues that may impact their operations. This is the
first poll of a continuing series of studies on economic issues that
affect small businesses.
Participants in the poll provide feedback on significant issues and allow
for real-time insight into the state of small businesses nationwide. The
universe of participants is developed from among the more than 100,000
small businesses that have been served by International Profit Associates
and its affiliates since its inception in 1991. Other small businesses
will be added to the IPA Small Business Research Board. The first IPA SBRB
study was a voluntary survey conducted via phone, email and fax. The poll
was structured and supervised through an independent resource.
 Those participating in the IPA SBRB program are invited to become members
of the IPA Small Business Research Board.
International Profit Associates, Inc. (IPA) is the largest privately-held
provider of management consulting services to small and medium sized
businesses in North America. IPA and its more than 1,700 professionals
offer a wide range of proven and innovative methodologies to help
businesses grow and prosper regardless of the economic cycle.
 IPA either provides directly or through its affiliated companies a
comprehensive array of business advisory services, tax and estate planning
services or merger, acquisition and other financial advisory services in
the United States and Canada.
More information about IPA can be found at
www.ipa-iba.com.
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