Small businesses with less than 500 employees make up 48% of American employment and 34.5 percent of GDP, and therefore they face an existential threat from the current recession. In light of this there is a dire need for small business owners to understand economic basics including business finance, business economics, business demographics, and business leadership. With the economic situation as it is now many are being forced out of business or are going bankrupt, and as a result this article will attempt to provide some insight on how entrepreneurs can best position themselves for success and how to keep existing customers satisfied, as well as attracting new ones.
In spite of the current crisis small business has continued to expand and grow, despite high unemployment and economic uncertainty. There are a number of factors contributing to this success and some of these are quite simple. For instance, competition from online giants like Amazon and eBay is becoming more fierce and local businesses have taken advantage by providing lower prices, better customer service, and personalized shopping experiences. As a result, consumers are shopping smarter and going to small businesses instead of national chains. The result has been billions of dollars in increased sales, and job losses have been significantly reduced.
One of the most important things a small business needs to compete in today’s business climate is an effective marketing strategy. Small businesses must adapt to changes in the marketplace. This means investing in current trends to develop new market segments and strategies. For example, with e-commerce and online marketing being such an influential force in both the retail and wholesale sectors of the business world, it is not surprising that many entrepreneurs are choosing to outsource their marketing to reputable online companies.
As the business world adjusts to the next phase of growth and adaptation known as the future economic “Pandemic” there is going to be a massive influx of companies entering the marketplace which cannot adapt to the rapid changes. This will result in lower sales, higher inventory costs, and loss of market share. To avoid this dreaded stage in business, the smart small business owner needs to be ready to act now. There is no tomorrow, so make your investment and secure the future today. Start researching and engaging in online business opportunities today.
While it may be too late for some small businesses to make the right decision, it is never too early to start planning for what the future may bring. In order to avoid the next “Pandemic” small business owners need to take a proactive approach to business strategies and marketing plans. While it is possible to implement changes now, many of these businesses will fail if they do not have the necessary support and guidance from experienced entrepreneurs. Small business experts can help guide these businesses through the necessary steps for future success. With the help of experts small businesses can gain the advantage needed to compete in today’s ever-changing marketplace.
The “Pandemic” of business is a direct result of too many businesses jumping in without putting enough thought into their marketing strategies. As mentioned above, the” Pandemic” of business is directly related to the “epidemic” of small businesses. Although many businesses may see potential growth, they often lack the expertise and/or experience needed to execute their business plans. For example, if the business plan on launching a new product line, it needs to conduct research to determine whether or not this new product will have market demand. If it does not, then it needs to determine if this new product line will be able to meet the demand. Without adequate research and development small businesses may find themselves in a cut-throat competition with larger businesses that already have a toe-hold in the niche market.
One of the solutions that business experts recommend in preparation for” Pandemic” is “Scoping.” This process is necessary before a business can conduct a business plan. Business owners should first determine their annual budget and identify which departments will be affected by seasonal changes. They then need to develop a marketing plan, determine how much of their time and money will be dedicated to core business functions such as: human resources, sales, production, and marketing. After determining the scope of each department, business owners will be better able to address any problems that may arise during the year’s run.
Many business owners underestimate the importance of planning. While it may be easy to throw together a short-term marketing strategy during an outbreak of a “Pandemic,” long-term planning is required to prevent an outbreak. The next time you’re faced with a business problem that seems overwhelming, consider conducting some research before deciding on the course of action. By doing so, you’ll ensure that your company is prepared to handle whatever comes its way during the next flu season.