The economy is ever changing and as a small business owner, you must stay on top of economic moves. The following are my views as to where we are now and a look at a short term future.
$ 600 Billion Dollars, a staggering figure, perhaps above the understanding of many small business owners. Our government is printing more money; in my opinion, that could be a catastrophic move. It could further devalue the dollar resulting in an increase in inflation. Oil prices are increasing as well as food prices. These two, current increases, will touch everyone of us; future planning to allow for these higher cost, and others, has to be planned for now. The real estate market will not see a rapid recovery in spite of low interest rates and low prices.
Unfortunately, I don’t foresee an increase in interest rates for our savings, so our extra funds have to be earned to keep up with the increasing costs.. Our recovery thus far has been one that failed to create a lot of new jobs. Two current issues still cloud the economic future: the first being the tax cuts which may come to an end January 1st and the second is the health care plan that has many detrimental issues for the small business owner.
Many small investors do not have faith in our traditional investment vehicles. Stability has not been established and the goal for your prospective clients is to stay even with their current assets. This translates in a value buying scenario and we have to make sure that all our marketing efforts are tied to a value benefit.
Once the Christmas buying season (mostly emotional) is over, be prepared for people to take a realistic look at their financial position and act accordingly. Start now to position yourself as a value provider. By being aware of what is happening in our economy, you have the advantage of being able to plan for growth in 2011 and beyond.
Given a choice between building your business on large debt or facing a firing squad… choose the firing squad. There’s a chance the firing squad might miss.
HAVE A GREAT DAY!