Now is the time when business analysts look into their crystal ball to see what’s to come. I’m not excluded from this bunch. My predictions are filled with less MBA garble and are more practical in nature. We can get an inkling of outcomes by current market indicators, policies and their impact, society, history, etc. I give you insight on where I think opportunities lie and where future challenges will be. First, I begin with the factors that helped formulate my predictions, including the economy, the change in business practices, unemployment, the fall of the housing market, the credit crisis, healthcare reform, policies, the aging population, social networking, and the continuation of the green trend. Overall, now is the time to seize opportunity because there will be hard times ahead!
FACTORS THAT WILL INFLUENCE OUR SMALL BUSINESS OPPORTUNITIES
The economy—The recession continues to be the driving force behind policies in the United States. Although we are technically out of a recession, the economy will take a longer period to rebound. We must remember this started with the dot.com bust that welcomed us in the 21st century, was followed by scandals like Enron, which led to suicides, lost retirements and the demise of well-known companies and was capped off by the housing crisis. The underlying reasons for each failure have led to policies that attempt to force an economic comeback and to decrease fraud.
The change in business practices—As a result of events of the past decade, business practices are changing: from spending too much and outputting less effort to doing much more with fewer resources; from flipping businesses to building companies that must last; from spending more now to waiting to spend; from obnoxiously trying to dictate demand to reaching out the old fashioned way; from continual patents to using what exists; from whitewashing to accountability; and from catering to big clients to valuing each client. These are just some of the many changes because of bad practices that helped put the nail in our economic coffin.
Unemployment—Unemployment continues to plague our nation. Even after we recover from the economic impact, we will experience job losses for several reasons: the change in business practices, our borderless world and the lack of talent to fill the jobs that are in demand.
Housing Market/Credit Crisis —What a tangled web we weaved! We will struggle to get past our credit and housing crisis. This began with low-interest and interest-free home loans, which led to lenders putting homeowners in homes they could not afford and homeowners biting off more than they could chew. Unscrupulous lenders did not care whether they could afford the home— they just flipped the loan. It turned out to be somewhat of a pyramid scheme gone badly. Whoever was paid first made the riches—only everyone was riding high and living big … and went back for more! The results? Home foreclosures and high-rolling mortgage and real estate brokers going from five-star living to pizza delivery. Policies were put in place to bail out banks and to encourage them to finance homeowners. Some efforts, though, just the delayed the inevitable: house foreclosures for those in homes they could not afford in the first place. It will take a while to get over this one folks.
Healthcare reform—What started in the Clinton days is now coming to a head in the Obama era. The proposed policy will lead to more Americans being covered, restrict insurance for denying coverage due to pre-existing conditions, and make coverage affordable for small business owners. However, it also means that businesses will be forced to offer coverage and flexible spending benefits may be reduced. Hold your horses though, this will not affect our immediate future but you better start planning for it.
The Aging Population—According to babyboomerstatistics.com, approximately 28% of the population are baby boomers, which means that about 76.1 million people in the United States were born between 1946 and 1964. One critical area where we are impacted is in the job market. There are more people exiting the workforce than are entering. Some of this mass exodus has been staved off due to the fact that baby boomers are forced to work longer because of lost savings and that medical advancement has increased life expectancy. We also have a larger group of the population tapping into the stressed social security and Medicare programs. Medical costs overall will increase for this population.
Social Networking—Those who aren't playing aren’t in the game! However, beware—this new technology enforces the need for authentic relationships. Participating in the big social club can make you or break you. Start getting in the game … the right and authentic way.
Going Green—Going green goes beyond caring about the ozone layer, air pollution and life. The backlash of big cars, big homes and getting as much as we can has affected more than just our economy. Many are learning that less is more. It has enforced a market of throwback and reuse!
The fattening of America—With over 60% of America labeled obese, the need to curve the trend of this epidemic is critical. It has led to higher amounts of chronic illnesses in younger people. There are even studies indicating that at the rate we are going, parents will outlive their obese children. This growing trend will continue to lead to changes in the way we grow our food, the ingredients in our foods and even possibly in policies to bring back recess in school.
Policies—Policies of 2009 and other future policies will play a big role in small business opportunities. Major factors that will influence policies will continue to be the economy, business practices reform, unemployment, the credit crisis, healthcare reform, baby boomers, social networks and going green. There are policies to help stimulate the economy, reform unscrupulous policies due to loopholes in law, encourage employment, make it more attractive for banks to start loaning again, give more people health coverage and encourage innovations of energy-efficient technologies.
OPPORTUNITIES IN 2010
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Services to Small Businesses—Unemployment often leads to a higher number of startups. Among other reasons, the obvious is that it becomes a means to income when jobs are scarce. However, many aspiring entrepreneurs need assistance with starting a business. Services that are needed include business plan writing, editing services, online marketing services, technology solutions, small business coaching and small business consulting. You can offer services through your home and even on a part-time basis.
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Freelancing/Moonlighting—Unemployment also leads to a higher demand for temporary or seasonal workers. This demand is growing greater with the aging of our population. The rate of new entrants into the workforce is lower than the rate of people retiring. Technology and concerns for the environment are just two reasons why flexibility in where you work has increased. While not all freelancing opportunities can be home-shored, a great deal can. Some of the professions with freelance possibilities include engineering, skilled laborers, client-facing workers (i.e., customer service representative), IT worker, information technology professional, accountants, financial analyst, web designers, lawyers and coaches/consultants. Look for many of these areas to grow in opportunities. The key is to make sure you are skilled in the area you are looking to freelance. There is not a shortage of jobs; the shortage exists in finding qualified professionals. Follow the fields with growing demand and you will be able to find your next moonlighting or freelancing opportunity.
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Anything Green–There are many opportunities in the green wave. Whether you are a builder, a crafter, an innovator, seamstress, a packrat, retailer or an environmentalist, going green can give you more green in your pockets! A short list of possibilities include:
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Building energy-efficient homes
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Re-using things in the home or selling them on eBay
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Making garments, accessories or household decor out of a client’s favorite pair of jeans
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Starting a consignment shop or clothes swapping network
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Consulting with businesses or homeowners
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Cloth diapers
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Offering organic foods and cleansers
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Offering Software As a Service (SaaS)—You may have heard this term and wonder what is. Essentially software as a service is offering technology solutions in a manner that gives customers more bang for their buck. The software is usually centrally located on a network and integrated in a larger network. This type of software offering will continue to grow, especially since we are becoming a borderless world. Companies like Microsoft offer business productivity software via the Internet and so can you. You can either program your own solution or even resell those offered by bigger companies who are looking to partner with small businesses. The possibilities are endless. You can offer accounting software, CRM systems, mobile applications, etc.
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Business that Cater to the Aging—Since baby boomers were born, if you wanted to follow the money then you needed to follow this segment of the population. Some opportunities include elderly facilities, retirement communities, adult day care and services to the elderly. In addition, medical advancement has led to a higher quality of life for the elderly. However, it means people are living longer. The combination of increased life expectancy and economic turmoil makes finances a large concern for baby boomers. The quality of life and finances expands the opportunities for our aging population. Other opportunities include financial planners, vitamin supplements, cosmetic solutions, dating services and services that offer companionship (i.e., taking care of chores, running errands, reading, etc.)
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Online Marketing Services—Although I mentioned services above, I think this is one that deserves its own bullet. Social networking, blogging and online marketing solutions (such as pay-per-clicks) have both opened the door for many to start their own businesses and increased the complexity in doing so effectively. Helping clients create advertising, performing search engine optimization and ghost writing will be opportunities for those affected in the publishing and marketing arenas. The online search business has become a billion dollar industry. The need for people to standout will make this a business opportunity to explore.
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The Fattening of America—The fact that our waistlines are increasing has made catering to the obese a booming market. Game systems that cater to fitness are growing. There are opportunities that target the obese that include weight loss supplements and drinks, medical intervention, private trainer, etc. Over 60% of Americans are overweight and, unfortunately, this epidemic is hitting our children at an earlier age. There are opportunities in offering healthier meals to children and being a nutritionist. I predict there will be more creativity in the ways that we will look to get
America trimmer … who knows—perhaps rent a playmate?
Although our economy is struggling, 2010 is a good time to start a business. The government is extremely interested in attracting small businesses. Why? Because they are vital to our economy. The Small Business Administration (SBA) has programs that are made to attract and grow small businesses. I believe now is the time to act. Right now money is being injected into programs to stimulate the economy. As our economy rebounds, we will get the backlash of all the money that is being spent. This means cutbacks and very tight purse strings. No matter how attractive it seems to start a business, just remember that the failure to have a viable business plan is the recipe for failure.
About the Author
Jowanna Parris-Daley owns and operates jowanna inc™, a small business consulting company that offers business plan writing, website design and technology consulting services for startup businesses.
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