Two-Thirds of Small Business Owners Plan Summer Vacations, According to the OPEN Small Business Network 2003 Semi-Annual Monitor from American Express

NEW YORK--(BUSINESS WIRE)--May 28, 2003-- Those with Plans to Take at Least a Week Off Jumps 15%; Most Vacationing Entrepreneurs also Anticipate Facing Business Worries

The summer travel season is here, and more small business owners are planning to take time off, according to the OPEN Small Business Network 2003 Semi-Annual Monitor from American Express.

In all, 66% of business owners are planning summer vacations of at least a week this year, an increase of 15% over 2002. Three-quarters (74%) of business owners in the South cite summertime travel plans, followed by business owners in the West (67%), Northeast (66%) and North Central (53%). Overall, 31% say they try to link vacations with business trips to save time and money.

While more business owners plan to get away this summer, it also appears most will not be able to escape completely. Among business owners with summer vacation plans, 73% anticipate grappling with business worries while they travel.

The top business worry among business owners with summer vacation plans is that an important client or customer will not receive appropriate service (24%); followed by concerns over who will manage the business while they are away and missed opportunities to land new business (tied, 18%); staff judgment calls (15%); equipment or operational breakdowns (12%) and the security of their facilities, offices or stores (8%).

"Business owners are often reluctant to take vacations because they fear the company will suffer if they are not minding it. The irony is that vacations can be a long-term investment in the success of the business by helping owners re-charge and return to work invigorated," said Alice Bredin, Small Business Advisor for OPEN: The Small Business Network from American Express. "Since business owners don't always have the luxury of time, it is important for them to do some careful planning to ensure they can create the time they need to get away."

Vacation Plans Vary by Size of Business

According to the OPEN Small Business Network 2003 Semi-Annual Monitor, annual revenues and business tenure appear to drive the greatest differences in vacation plans and business concerns while traveling. For example, only 56% of businesses with under $200,000 in annual revenues plan to vacation this summer, compared to 74% of their larger counterparts.

In addition, smaller businesses with summertime vacation plans are nearly twice more likely than larger companies to be worried that an important customer won't receive the service they are used to (34% vs. 20%) and that they will miss an important new business opportunity (26% vs. 13%). Larger companies with vacation plans report being more worried about the operational side of their businesses, including who will manage their companies while they are away (23% vs. 13% for smaller companies) and staff judgment calls (20% vs. 7% for smaller companies).

Companies in business for five or fewer years are less likely than more tenured companies to have vacation plans this summer (59% vs. 69% for companies in business for six or more years). In addition, less tenured companies were also more likely than older businesses to be worried that an important client would not receive the appropriate type of service (37% vs. 21%); that they would miss a new business opportunity (25% vs. 16%); who will manage their business while they're away (23% vs. 17%) and staff judgment calls (24% vs. 12%).

Minority business owners (66%) and women business owners (64%) are just as likely as the average business owner (66%) to report vacation plans of at least a week this summer. Among those with vacation plans this summer, minority business owners are most likely to be worried about:

  • Missing new business opportunities (33% vs. 19% for women business owners and 18% overall);

  • An important client not receiving appropriate level of service (30% vs. 28% for women business owners and 24% overall) and

  • Staff judgment calls (25% vs. 10% for women business owners and 15% overall)

Make Vacationing Easier

To assist business owners in planning summer vacations, Alice Bredin, the OPEN Network Small Business Advisor offers the following tips:

  • Schedule a vacation well ahead of time. Especially important for those who think there is never a "right time" to get away, putting a vacation on the calendar early will enable you to appropriately prepare for it. This includes preparing your staff to cover while you're away.

  • Consider using a professional to handle your travel plans. Working with a travel counselor to book your trip can save you time and money and make planning a vacation easier. Travel professionals can find good values and can also help if plans go awry.

  • Schedule breaks during business downtimes. Consider planning some time away this summer when your business may be slowest - or the least hectic. If your business is seasonal, consider vacationing during the off-season.

  • Commit yourself financially to your vacation. Consider putting a deposit on a rental house or a trip. Committing to take that time off and setting up financial consequences if you back out (lost deposits, cancellation penalties, etc), can help ensure you actually take the vacation.

  • Budget your workload. Once you decide how long you'll be away, figure out exactly what needs to be done before you leave and build in this extra work into the days or weeks leading up to your vacation. By leaving with a "clean plate," you can reduce your anxiety about leaving the office and give yourself a greater chance of relaxing.

  • If you must work on vacation, do it in brief spurts. Ideally, you don't want to take work with you on vacation, although working on vacation is better than no vacation at all. If you must work, do it in short spurts, perhaps in the early morning, so you can quickly get back to the business of relaxing.

For more tips on planning vacations, business owners can visit www.open.americanexpress.com and click on the "Inform Your Decisions" link.

Survey Methodology

The OPEN Small Business Network Semi-Annual Monitor, conducted each March and October, is based on a nationally representative sample of 781 small business owners/managers of companies with fewer than 100 employees. The survey was conducted via telephone by International Communications Research (ICR) from March 10-March 24, 2003. The poll has a margin of error of +/- 3.5%.

About OPEN: The Small Business Network from American Express

OPEN: The Small Business Network is the dedicated division of American Express (NYSE:AXP) that offers small business owners a wide range of tools, services and savings designed to meet their evolving needs, including charge and credit cards, convenient access to working capital and credit information, enhanced online account management capabilities and savings on business services from an enhanced lineup of partners. To obtain more information about the OPEN Network, visit OPEN.americanexpress.com or call 1-800-NOW-OPEN to apply for a card or loan.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.

Contacts

American Express
Tom Sclafani, 212/640-0541
Thomas.M.Sclafani@aexp.com
or
Wichard Communications
Sheree Wichard, 718/788-9585
Swichard@aol.com