…and little incentive to invest it in people or equipment, according to a survey by CFO Magazine. What would loosen the purse strings? A killer acquisition or uptick in demand were the top two answers.
Other key findings:
- A lot of CFOs (43%) recognize the vicious circle: if they spend money, the economy improves but they want to hold off spending money until the economy gets better. But a big majority (71%) don’t feel obligated to invest in the economic recovery. The concern: they have a fiduciary duty to be safe and besides, they don’t want to hire and then lay off if demand doesn’t rise.
- Don’t look for the budgets to ease soon. A related study back in the Fall shows 25% reporting no plans to invest in the next 12 months. The reason: no attractive investments.
Why do you care? The above might explain the initial reaction of the “budget blues” even when prospects contact you. But know this: they have the cash. It’s just a matter of selling the ROI to the people holding the purse strings.




