Some small-business owners see end of downturn, survey says

Many small businesses believe their sales will increase or remain flat this year even as they continue to cut operating costs, according to a study released yesterday by Raddon Financial Group of Lombard, Ill. Of the 1,200 companies surveyed online in March, 18% said they believe that annual sales will increase in 2009 and 37% said they expect sales to remain flat, compared with last year. But 45% said they expect sales to decrease in 2009. The companies in the survey ranged from annual sales of $500,000 to $10 million. The participants also said they plan to cut costs by reducing staff and benefits. A full 30% of those surveyed said they plan to lay off employees, while 52% said they will freeze pay and 41% said they will eliminate bonuses. Another 9% said they plan to close or consolidate facilities. Raddon Financial Group, which provides technology solutions to the financial services industry, is a unit of Open Solutions Inc., a Glastonbury, Conn.-based firm that offers an information-management-product platform for the industry.