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| | The ABHP - A Bit of Humble Pie Network is not currently active and cannot accept new posts | | The Future Of Small Business .... Doom and Gloom Or What? | Views: 651 | | Oct 03, 2008 5:24 pm | | The Future Of Small Business .... Doom and Gloom Or What? | # | 
Michael Lemm | | Each year it seems harder for small businesses to stay afloat. Many spaces in strip malls and other shopping centers seem vacant. However, the big companies, like Wal-Mart, seem to be staying busy if not getting busier.
For the average startup, it is impossible to compete with large businesses that have power to negotiate deals. When given a choice of picking a new small business to shop at and a large established business, most seem to choose to later. This is understandable, given that they know the business and may be able to find good bargains. Meanwhile, many workers get paid the minimum while the "big heads" get richer and richer.
So what future is there for small businesses?
How can they compete with the big companies with today's poor economy and inability to get a loan?
Does the system favor those who work for SOMEONE as opposed to working for YOURSELF?
There may be good news and bad for small business in the coming years say some. The next 10 years will tell for sure but local (small) business may be about to boom. The cost of oil will continue to go up as production declines. China, US and Russia are in a race to lock up existing oil reserves for themselves which will likely affect global trade. A general lack of fuel in the market at ever escalating prices .... and a crumbling infrastructure .... will make it near impossible to transport goods across country and globally. Which will drive local production of essential goods again.
Some say we will have to walk or bike to work too ... and learn how to grow food in our back yards in collaboration with our neighbors. If this is true then Wal-Mart and their like will be the first to fall.
Personally I believe it's wide open for any size business really, whether that's an individual consulting business or something much larger. I've always believed that you need strive to be the best in your field. Deep understanding of your market, a thirst for information and new direction, and treating people as you yourself wish to be treated are all elements that drive success. Naturally, things like making good decisions and following your instincts are key too.
Its never been easy to run a small business. In the past 80% of small businesses failed in the first 2 years. It just happens faster today.
Our free market system will always have room for well run small businesses. It requires starting with a good concept, having a plan, finding a good location and managing the business by the plan.
I believe you will have good business if you are a bankruptcy attorney, a property manager, or do home repairs. There will be all kinds of opportunities that precipitate from the $700 billion bailout. You just gotta get creative.
In short, opportunities surround us. You just have to see them and make the right ones happen once you've calculated the potential risk and reward. And, hopefully, luck is on your side too.
God Bless,
Michael Lemm
"Helping YOUR Business....DO Business"
FreedomFire Communications
Small Business Resources Cafe
Private Reply to Michael Lemm | | Oct 03, 2008 6:03 pm | | re: The Future Of Small Business .... Doom and Gloom Or What? | # | 
Eileen Brown | | Great article Michael.
"Personally I believe it's wide open for any size business really, whether that's an individual consulting business or something much larger. I've always believed that you need strive to be the best in your field. Deep understanding of your market, a thirst for information and new direction, and treating people as you yourself wish to be treated are all elements that drive success. Naturally, things like making good decisions and following your instincts are key too."
I believe this to be true also. Since you mentioned the
rising gas prices it could be a huge advantage to have an
online business. Many already turn to the internet for
shopping household and specialty items.
Time and gas = money.
So shopping or doing business online keeps these
expenditures down.
Eileen :D
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Laura Wheeler | | I don't think that Wal-Mart will fail due to gas prices. They'll continue to appeal to those who need lower prices to live.
Small businesses HAVE to look at the dollar equation. Maybe you cannot offer a lower price (heck, I can't compete with GoDaddy Website Tonight on a price basis), but you CAN compete on value.
The trick is to create a unique selling proposition that is SO different, and SO targeted to the needs of your target market in ways others are not doing, that it simply eliminates the competition for anyone who really understands the difference. It can be hard to GET them to understand the difference because sometimes the customers are stuck in the same rut as the providers, but once a few of them have an "ah-ha" moment about your business, it catches fire.
You can't be another "jewelry maker", or "house painter", or "webmaster", or "VA", or "Accountant". You have to be the first of a new breed. Someone who breaks all the negative stereotypes within your industry, and takes the positive things to the upper limit.
Do that, and you can compete against any sized company, in any economy, and in any arena. It isn't "easy", but it is successful in unpredictably positive ways.
Laura
Mom to Eight
307-379-2502
Firelight Business Enterprises, Inc.
http://www.firelightwebstudio.com - Exceptional Website Services
http://www.frontporchfolks.com - Networking community for small business
http://www.microwebmasters.com - MicroBusiness Service Provider Trade Association - Unite to Succeed!Private Reply to Laura Wheeler | | Oct 03, 2008 6:49 pm | | re: The Future Of Small Business .... Doom and Gloom Or What? | # | 
Kurt Schweitzer | | Personally, I don't think the future of small business looks any worse than it did last year.
On the other hand, in tough economic times money management becomes more important. Small businesses tend to run closer to the edge, so their ability to ride out a poor economy is less.
I'm not seeing an indication that consumers are preferring to shop big stores even more than in the past. Instead what I'm reading is that consumers are being cautious about their spending. ALL retailers are being affected.
You mention mall stores. Have you ever looked at the economics of setting up shop in a mall? You pay a sizable premium for that location - in my case it ranged from three to ten times the rental cost of a non-mall location. You also wind up being at the mercy of the mall - they dictate your hours, you have no outside signage, and even your inside displays are seriously limited.
True, all that foot traffic can bring you a TON of business, but the slightest glitch can turn you upside down pretty quickly!
My knuckles may be white, but I'm planning to stay on this ride for a little while longer. Hopefully it'll smooth out next year!
Kurt Schweitzer
Urban Village ScootersPrivate Reply to Kurt Schweitzer | | Oct 03, 2008 7:16 pm | | re: re: The Future Of Small Business .... Doom and Gloom Or What? | # |
Laura Wheeler | | I don't think it WILL smooth out next year. If you understand the dynamics of what is going on, and what the bailout will actually do, you quickly grasp that we are only on the leading edge of the real impact. The snowball started forming 10 years ago, and it isn't even halfway down the mountain yet.
You can't ride it out without taking action. You'll sink if you try.
Competition is going to get very tight. Smart businesses that change, and that see how their customer needs change, and adapt with it, will survive.
People are already starting to think differently. That is going to continue to change. Those people are your target market - their priorities are changing rapidly. Either keep up with how your target market is changing, or kiss your business goodbye.
Businesses all across the board are on the edge now, and failures are occurring daily. We are going to lose big and small businesses - all are equally vulnerable (just ask HP, GM, WAMU, etc). The only way you can avoid being one of them is to adjust BEFORE you are on the edge.
If you are waiting till January to see if things get better, or if you are hoping a different president will save your business, you are already too late - it isn't happening. If you do not get on the ball NOW, and get your plans in order, to survive when people pay for necessities only, and to have your plan for BEING a necessity, then you are already deciding to fail.
If you don't know what I mean, or if you need to know how to do that, practically, watch my blog. Part 1 of a six part series started yesterday.
http://www.frumpyhausfrau.com - Don't want to sound like an ad there, I'm just tired of repeating it to everyone.
Laura
Mom to Eight
307-379-2502
Firelight Business Enterprises, Inc.
http://www.firelightwebstudio.com - Exceptional Website Services
http://www.frontporchfolks.com - Networking community for small business
http://www.microwebmasters.com - MicroBusiness Service Provider Trade Association - Unite to Succeed!Private Reply to Laura Wheeler | | |
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