Results of the 2011 Hampshire First Bank Business First Survey. The Business First survey included participation from businesses located across Southern New Hampshire who were asked a series of questions relating to industry profile, economy, employee benefits, business expansion, business management, environmental concerns, and marketing practices. These business leaders primarily represented the small business community, which embodies the New Hampshire spirit.

1. 4/14/2011
“Business First” Webinar
April 14, 2011
Fred Kocher, Host “New Hampshire’s Business”
New Hampshire s Business
President, New Hampshire High Technology Council
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2. 4/14/2011
Business Profiles
In which industry does your business specialize?
Businesses were as diverse as professional sports, funeral homes, real estate and
consulting. Businesses which responded at the highest rate included:
• Real Estate
• Contractors/Construction
• Law Firms/Legal Practitioners
• Property Managers
• Advertising/Marketing/PR
• Consultants
C lt t
In all, businesses from 27 broad classifications participated in the survey.
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3. 4/14/2011
How is your business incorporated?
The top two classifications of business
were:
• Limited Liability Corporation – 31%
• “C”Corporation – 24%
• “S”Corporation – 21%
How many employees do you currently employ?
The SBA defines businesses in wholesale trade as “small businesses” if they have
100 or fewer employees. Based on this, 89% of the respondents were small
businesses, compared to 85% in 2010. Breakdown of businesses is as follows:
• 1-10 employees – 52%
• 11-25 – 23%
• 26-50 – 11%
• 51-100 – 3%
• 101-250 – 6%
• 250+ – 5%
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4. 4/14/2011
What was your 2010 revenue?
Nearly 50% of respondents (47%) were
from businesses with 2010 revenues
less than $1M, similar to 2009.
After businesses with less than $1M,
next most widely reported 2010
revenue was $1M-$2M (16%). Last
year, the next most widely reported
classification was > $10M (19%).
What is your ZIP Code?
Businesses completing the survey were
clustered around the five banking
centers. Respondents most often
came from:
• Manchester – 31% (18% 2010)
• Keene – 15% (14% 2010)
• Concord – 5% (8% 2010)
• Nashua
N h – 8% (6% 2010)
• Bedford – 13% (6% 2010)
• Portsmouth – 9% (4% 2010)
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5. 4/14/2011
Business Expansion
Business Expansion in 2011 Business Expansion in 2012
• 50% “somewhat” or “very” • 54% “somewhat” or “very” likely
likely to increase their capital to increase their capital
expenditures in remainder of expenditures in 2012
2011 • 20% “very” likely to increase their
• 24% “very” likely to increase capital expenditures in 2012
their capital expenditures in the • Only 10% of businesses are “very”
remainder of 2011 or “somewhat” likely to decrease
capital expenditures in 2012.
32% will finance their increased capital expenditures
with loans from community banks (consistent with 2010)
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6. 4/14/2011
How hard is it to secure financing?
57% are finding securing financing to be a more involved process
Are you finding your bank is enforcing stricter requirements in the qualification
process? – 56% said “Yes” (63% in 2010)
In spite of this, businesses are not having problems meeting lending covenants –
59% haven’t struggled with it (64% last year)
Have you been denied access to business credit in the last two years?
73% - No (81% in 2010)
Employee Benefits
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7. 4/14/2011
Employee Benefits
There have been many legislative changes which may have an impact on
businesses’ ability to grow. How do businesses feel about these changes?
Over half (51%) report that changes to the
health care coverage requirements will NOT
negatively impact their ability to grow their
business
Employee Benefits
What are businesses doing to provide benefits for their employees?
68% of businesses responding provide employee
health insurance coverage (79% 2010)
42% of businesses responding provide dental, vision
or both (49% 2010)
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8. 4/14/2011
Employee Benefits
What are businesses doing to provide benefits for their employees?
90% of respondents are covered through a group health plan themselves
38% of businesses responding cover over half of their employees
23% of businesses have decreased health insurance coverage benefits in the
last two years (declined from 2010 – 28%)
34% of businesses have increased the portion of the health care premium paid
by employees in the last two years (declined from 2010 – 38%)
Employee Benefits
What are businesses doing to provide retirement benefits for their employees?
83% of businesses match up to 25% of retirement contributions
(up from 74% - 2010)
9% match retirement contributions 76-100% (down from 16% - 2010)
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9. 4/14/2011
Economy
Economy
In the last 12 months, I feel the national economy has:
Improved – 40% (38% 2010)
Stayed the same – 44% (24% 2010)
Worsened – 16% (38% 2010)
Overall – 84% feel it improved/stayed
the same compared to 62% in 2010
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10. 4/14/2011
Economy
In the last 12 months, I feel the regional economy has:
Improved – 50% (36% 2010)
Stayed the same – 33% (36% 2010)
Worsened – 27% (38% 2010)
Overall – 83% feel it improved/stayed
the same compared to 72% in 2010
Economy
In 2011, I expect my business to have:
Reduced sales – 9% (16% in 2010)
Sales that remain steady – 39% (42%)
Increased sales – 51% (42%)
Nearly 91% expect same or increased sales in 2011
2011.
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11. 4/14/2011
Economy
In 2011 I feel that the national economy will:
Improve Slightly – 53% (51% in 2010)
79% of respondents feel that the economy will remain
steady or improve (75% in 2010)
Business Management
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12. 4/14/2011
Business Management
In 2010, I found negotiating with my suppliers to be:
- 16% - More Difficult (30% in 2010)
- 69% - The same or easier than in the past (63% in 2010)
As such, 61% of respondents have not been forced to
such
increase their costs to customers in 2011 (64% in 2010).
Business Management
44%
have hired a new employee in the last three months.
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13. 4/14/2011
Business Management
53% of respondents have reduced overhead in 2011.
64% report labor cost as the largest expense item.
Respondents were fairly evenly
split on which line item they
would reduce, if possible:
The New Hampshire Advantage
78% of respondents “Agree” or “Strongly Agree” New
Hampshire is a great place to do business.
Of respondents:
52% are not natives of New Hampshire (54% from New
England; 46% from outside of NE)
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14. 4/14/2011
The New Hampshire Advantage
25% of respondents do business in NH because of the
tax structure
What are the top reasons to do business in NH?
Respondents feel that:
• Current residency is the #1 reason
• The cost of doing business is the #2 reason
• Tax structure ranks #3
Environmental and Social
Concerns
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15. 4/14/2011
Environmental Concerns
62% of businesses “agree” or “somewhat agree” it is important for their
businesses to be green (68% in 2010)
64% of businesses “agree” or “somewhat agree” it is important for their
businesses to use recycled materials (69% in 2010)
79% of businesses make a concerted effort to conserve
Environmental Concerns
Businesses reported a wide range of ways they’ve gone
green. Some are simple, some are complex:
•Recycling •LEED Certifications
•Going paperless •Changing lighting solutions and using
•Using water coolers instead of bottles CFLs, timers
•Using renewable resources such as wood •Encouraging telecommuting
C li
•Carpooling •Investing in energy efficiency
I ti i ffi i
•Reusing waste products in other ways programs
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16. 4/14/2011
Social Concerns
75% of businesses participate in philanthropic
activities and partnerships
Marketing
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17. 4/14/2011
Marketing
58% of businesses currently practice “traditional marketing (81% in 2010)
traditional marketing”
Where is the decline in “traditional marketing”?
• Increased tradeshow expenses
• Increased B2B outreach
• Increased web presence, including online advertising
• Other electronic media
• Third party partnerships, including sales reps and channel partners
As such, 46% increased their overall marketing in 2011 from 2010.
Marketing
60% plan on focusing more time and money on marketing their business in
2011
70% personally belong to a social media site (61% in 2010)
54% of businesses were represented on a social media site in 2010...
and 62% of these same businesses are represented in 2011.
88% have websites for their businesses.
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18. 4/14/2011
Future Outlook
Overall Takeaways
• The majority of businesses are increasing their capital
expenditures in the remainder of 2011, and in 2012.
• 84% of respondents feel the national economy has improved
in the last 12 months.
• 83% of respondents feel the regional economy has improved
in the last 12 months.
• 9 % of businesses expect steady or increased sales in 2011.
91% f b i d i d l i 20
• 78% of respondents agree or strongly agree: New Hampshire
is a great place to do business.
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19. 4/14/2011
Thank you for your time!
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