Economic Outlook

From page A-5 compared to 51 percent nationally.

• To hire and retain employees, half (50 percent) of Black owners surveyed plan to increase wages, and 38 percent plan to offer upskilling and training opportunities, compared to 42 percent and 29 percent nationally.

“Inflation has been a challenging headwind impacting businesses of all sizes, across all industries,” said Ginger Chambless, head of research at JPMorgan Chase Commercial Banking. “While we have seen some encouraging signs that inflation has started to moderate and should cool over 2023, businesses may still want to consider adjustments to strategies, pricing or product mixes to help weather the storm in the near term.”

Baxter E. Hall, insurance broker and advisor at Kapnick Insurance, told the Michigan Chronicle recently that as a client executive and benefits consultant, he sees a lot of business trends and changes.

“The rising costs of medical and prescription costs are at the top of the list. Along with the need for mental health resources and how to get better employee engagement,” Hall said, adding that staying afloat could mean different things to different people but connectivity is always key. “I think expanding your network is always important. Exposure to different people in industries and positions that are different from yours adds a wonderful perspective. Also, adding new skills and certifications to your toolbelt is always a good thing.”

He described the insurance industry as a “noble profession.”

“The chance to help people prepare for the unexpected, whether it’s commercial, personal or medical insurance is a privilege,” Hall said. “There are so many positions that fit many interests and skill sets that people are not aware of. Part of the work I do with NAAIA (National African American Insurance Association) is to expose Black/BIPOC [people] to the opportunities in the insurance industry and assist with making it more diverse.”

Executives from small firms continue to have more optimistic economic outlooks than executives from medium-sized businesses, who indicated substantially more pessimistic views compared to this time last year, despite the widespread opinion that a recession will occur in 2023.

The forecast for the performance of small and medium firms is still positive, with 66 percent of small businesses and 72 percent of midsize enterprises expressing optimism for the coming year. More than two-thirds (69 percent) of small businesses anticipate rising sales and revenue in the upcoming year, while 65 percent predict higher earnings in 2023. Similarly, 51 percent of medium enterprises anticipate higher profits in 2023, while 63 percent anticipate higher revenue and sales.

“Following the challenges of the last few years, it’s encouraging to see the resilience of small business owners and leaders,” said Ben Walter, CEO of Chase Business Banking.

“The next economic cycle is always right around the corner, so our role is to help small business owners plan ahead so they can succeed in good times and bad.”

Companies may want to concentrate on the following factors while planning for the remainder of 2023:

Maintain Awareness of Economic Trends: Business leaders will want to pay close attention to whether current trends regarding the Federal Reserve, consumer spending, inflation, labor markets and more continue, slow down or reverse in the upcoming year even though they are undoubtedly familiar with today’s top economic headlines.

Recession-Proof Your Company: No matter when or if a recession occurs, businesses may take action right now to maintain their flexibility, strengthen their balance sheet and even identify opportunities amid uncertainty.

Maximize Working Capital: In times of economic instabil-

Property Is Power

From page A-5 the three top bureaus. One of the oldest and most commonly-used credit score is Fair Isaac Corporation. “A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay the loan, and how much it will cost (the interest rate).”

What does this mean for you? In essence, your chance of getting a loan that fits your needs is reliant on your credit score… a higher score shows that you handle credit well, which can improve the terms of your loan. Scores typically range between 300 and 850. So, what’s an “excellent” credit score versus a “poor” credit score? Here’s how credit scores generally break down:

• 800 or higher = Superior

• 740-799 = Very good

• 680-739 = Good

• 580-669 = Fair

• 579 and below = Poor

The following factors influence your score:

• Your payment history - Have you paid your bills on time?

• How much of your credit you’re using - ity, sustaining working capital is even more important. Working capital is a significant measure of a company’s financial health. Businesses may want to think about using supply chain financing and dynamic discount solutions, putting in place more effective inventory management and revising present loans to minimize liabilities to manage working capital more effectively.

More social media acumen is needed in 2023, too, as using different platforms will increase this year.

The importance of social media advertising is growing, but so has the level of competition.

To develop an audience and raise brand awareness, small businesses should concentrate on a multichannel organic strategy. While advertisements can support organic growth, small businesses should refrain from engaging in a social media arms race with rivals when organic strategies like content marketing may provide a higher return on investment.

Marketers will use their top clients

Look for marketers to re-

Less is better when it comes to spending up to your credit limit.

• Age of credit - How long have you held the credit?

• How many types of credit you haveCredit card, auto, home and school loans, etc. all count as different types of credit.

• Recent credit applications - These are also called “hard inquiries,” and come from applying for loans or credit cards. The better your credit, the better you rate. If you have a higher credit score, lenders see that as a sign you are more likely to pay back your loan. A lower credit score makes a loan riskier for the lender.

What Are Credit Inquiries and How Do Credit Inquiries Affect You?

A “hard” inquiry is when a lender checks your credit as a result of your application for a new loan, credit card, or line of credit. When this happens, your credit score temporarily decreases. For FICO scores, this decrease is typically less than five points, and can disappear within months if you make your debt payments in a timely fashion. “Soft” inquiries are not related to lending you money. They may appear on your credit report, but they do not alter your score. For example, when you check your own credit or an employer checks your credit as part of the hiring process, these are considered soft inquiries. Your credit score is of the utmost importance when making large purchases that sort to their most loyal clients as a source of income during uncertain market conditions. Strengthen the focus on current clients who show indicators of brand loyalty to boost sales and support companies through tough economic times.

“A great and cost-effective way to identify and take advantage of your biggest brand advocates is through strategic UGC [user-generated content] efforts,” said Zarnaz Arlia, chief marketing officer for customer experience platform Emplifi. “Brands can maximize the value of UGC by promoting it through exciting offers, branded hashtags, contests and even via their e-commerce website.”

User-generated content can produce spectacular outcomes while frequently costing less than more established forms of promotion. “Authenticity is what modern consumers are craving,” Arlia said, “and there’s nothing more authentic than the voice of the customer.”

For more information on the Business Leaders Outlook survey, visit jpmorgan.com and search “2023 Business Leaders Outlook: U.S.” require a loan. A better score can save you big money long term. To prevent a slew of hard inquiries from negatively impacting your credit score, avoid applying for multiple credit cards or loans at one time. This could lower your score significantly, therefore decreasing your chances for more favorable terms. Instead, think ahead to big financial loans you have coming up, like a home mortgage or an auto loan. Then, ensure you haven’t applied for other new lines of credit within a few months of your loan application.

What To Remember When Considering a Mortgage

Generally, mortgage lenders require a credit score of at least 640 - 660 to receive a conventional mortgage loan. Conventional loans are not backed by a government agency, so qualifications are often tougher. However, they offer good rates, down payment options and flexible terms, which makes them an attractive option. On the other end of the credit score spectrum, if you have a credit score of 720 or higher, you’ll often gain more favorable terms and may need a lower down payment. To put it into perspective, a difference of 100 points on a credit score could impact your rate by 0.8%. This difference could cost you $10,000 or more over the lifespan of the mortgage! The key takeaway to remember... don’t double-dip on your credit inquiries. If you plan to apply for a mortgage, do not apply for a credit card at the same time. You could save yourself thousands of dollars.