Ask an Expert: Economy to drive small business trends
— -- What a difference a year makes!
A year ago, my annual "Top 10 Trends in Small Business" was full of ideas spawned by big changes in technology and the Internet, with things like smart phones and SEO dominating the list.
This year?
While the Web and technology certainly make an appearance, it will be no surprise that many of the dominant trends right now relate to the economy.
And, while I will note again that this is not a prediction column, I should report that my No. 4 trend last year was eerily prophetic: "2008 looks to be a year dominated by the ripple effects of the sub-prime mortgage crisis: A sluggish economy and probably a recession. For the small business, the effects are substantial. .. the overall belt-tightening means doing business all around will be more of a challenge."
This year, the economic prognostications are even worse, and small business trends generally reflect that. That said, it's most certainly not all bad news. There is a lot of good going on out there, and plenty of opportunity for those who seek it.
Top 10 Small Business Trends, 2009
10. Money doesn't grow on sprees:In this era of belt-tightening, reduced budgets, unemployment, and fear, it is easy to see why one of the most obvious trends out there affecting small business is the desire of consumers and customers to save a buck, spend less, and get a bargain.
Even high-end brands are feeling the effect of this trend; the lavish Bellagio Hotel in Las Vegas for instance, a resort that usually commands at least $300 a night, has lately been offering rooms for about half that amount.
Taking advantage: If people are looking for a bargain, give them one. Discount poplar products. Bundle services for less. Negotiate.
9. The O-conomy:The election of Barack Obama signifies many things, but for our purposes here, a main one is that government spending and budgets will be headed in a new direction, and it would behoove the smart entrepreneur to get ready to take advantage of these new priorities.
The stimulus package that Congress will pass in early '09 will budget plenty of money for all sorts of infrastructure projects – everything from the traditional – roads and bridges – to the new – green businesses and high tech.
Taking advantage: Google 'bidding on government contracts' and learn how.
Government largesse – it's not just for Halliburton anymore.
8. Green goes mainstream:Last year, coming in at No. 3, was "Green is the new black" – being green was trendy. In 2009, it is expected. Yes, people are looking for a bargain, but an increasing number also want their product and service providers to be environmentally conscious. And green consumers in particular will almost always be willing to pay a premium for organic, sustainable, green products.
Taking advantage: At a minimum, make sure your website indicates your green commitment.
7. The solo-preneur takes flight:According to the Bureau of Labor Statistics, in November 2008 "employers took 2,328 mass layoff actions involving a total of 224,079 workers." In addition, "the unemployment rate rose from 6.5 to 6.7%. Job losses were large and widespread across the major industry sectors."
And the unemployment rate is only going to climb higher, and higher.
According to Thomas Frey, the Senior Futurist at the DaVinci Institute, "As a general rule, 7% of the recently jobless will attempt to start their own businesses." Frey says that "the most popular form of start-up will the Empire of One, one-person businesses. .. ."
Taking advantage: "Look for rapid growth of support structures, management systems, and outsourcing options."
6. Opportunity abounds! As Warren Buffet says, "You should get greedy when others are fearful and fearful when others are greedy." Many things are on sale right now, especially stocks and real estate.
Taking advantage: If you buy at these historically low prices today, it is doubtful that you will regret it tomorrow.
Next week: The Top 5.
Ask an Expert appears Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com.And you can click here to see previous columns. Steven D. Strauss is a lawyer, author and speaker who specializes in small business and entrepreneurship. His latest book is The Small Business Bible. You can sign up for his free newsletter, "Small Business Success Secrets!" at his website —www.mrallbiz.com.