Small business owners are feeling a little better about the future, according to a new survey.

In early August, Wells Fargo released the results of its third quarter Small Business Index, compiled in collaboration with Gallup, which collected responses from small business owners.

Respondents were asked how they felt about the current business climate, what important challenges they face and the impact of the use of technology in their small business.

The survey showed that overall, optimism among small business owners continues on a slow but upward trend. The Small Business Index score is at its highest level in six years, having increased to positive 49 in the July survey, up slightly from positive 47 in May.

The report stated that expectations are a significant factor in the increased optimism. The current expectation score is now at a positive 18, higher than at any point since the third quarter of 2008, although still well below pre-recession levels.

When surveyers asked business owners were asked to identify the most important challenge they currently face, 13 percent cited attracting new customers and generating new sales. Other “top challenges” responses were government regulations (11 percent), financial stability of their business (11 percent) and the economy (11 percent).  

When it comes to generating new business, small business owners surveyed said the toughest part was marketing and advertising (14 percent) and competition (13 percent). Ten percent of business owners said the costs of running a business made it difficult to attract customers and grow. Another 10 percent said making product improvements or having the latest products was the biggest obstacle to growing sales. 

In a separate piece issued in July, Greg Winkler, a business banking manager with Wells Fargo, also wrote about the importance to small business owners of doing a mid-year financial review.

“Since half of the year is in the books, North Carolina business owners may decide to wait another six months until January to take stock of their business’ financial health. But what many don’t realize is that making time in June or July for a mid-year check-in – when you have the benefit of your tax returns and a good idea of your business needs – may help your business save time and better manage your money in the long run,” he wrote.

Winkler noted some things to consider during the mid-year review process.

Evaluate where your business stands: “Mid-year is the perfect time to look for ways to maximize revenues, minimize expenses and improve cash flow,” he wrote. “Depending on how profitable your business has been during the first half of the year, you may want to talk with your banker about how you can improve efficiency.”

Assess your business goals: Winkler said that it’s a good idea of how a small business is doing in terms of the goals and budgets the owner established at the start of the year.

“Think about what you initially wanted to achieve in your business this year and look at your goals from a fresh perspective. Determine whether they are still relevant and attainable for the remainder of the year or if it’s time make a few adjustments, and don’t be afraid to do so,” he recommended.

Think taxes: “Spend some time reviewing your tax entries for the first half of the year to ensure you’ve captured all expenses, especially for things like cars that are used for business and personal use. If you haven’t met with your tax professional recently, now is a good time to go over key filing dates and deadlines like quarterly tax payments, and staying organized and prepared on your business taxes,” Winkler wrote.