Founder and CEO of Home Alliance.
Our nation is currently experiencing stagnating incomes and rising living costs. Our dollar doesn’t purchase as much as it did a few years ago, many people are struggling, and it’s difficult to be decisive in uncertain times.
However, that doesn’t mean there isn’t hope or a way forward. Based on my own experience and observations, here are some current market trends to keep an eye on that can help you make the best decisions for your business in these difficult economic times.
1. Market share is up for grabs.
Many businesses are reducing marketing spending to save money. I believe this is a mistake because it can lose your company both visibility and market share, which are hard to regain when the economy improves.
It’s often easier to stand out in a less crowded market, so I recommend not relying on only one channel. If one fails, you have others to fall back on. This may not always be the most profitable measure, but it can help ensure you continue gaining market share. If budgets are tight, focus on cost-effective channels that can deliver results, such as affiliate and referral marketing, to expand your reach by leveraging existing customers.
2. Employees’ workplace standards are changing.
During Covid, many of us had to accept that people wanted to work remotely. This trend is clearly here to stay. It’s natural for leaders to fear losing control and efficiency, but there are ways to gradually release the control you may have had in-office to accommodate hybrid or work-from-home employees while still setting clear expectations and standards.
For instance, my company implemented a remote work policy with systems and key performance indicators (KPIs) based on Getting Things Done by David Allen. In the Slack group, everyone writes what they did yesterday and what they’ll do today. At the end of each day, people report on their KPIs. Line managers then analyze the data and consolidate it into weekly reports, and performance is compared against previous weeks. Any unresolved issues are reported up the chain of command.
Initially, it can be challenging for your workforce to adapt to these kinds of changes. But when expectations are clear, it’s easier to see who isn’t producing results. It may be hard to let people go who can’t meet your standards, but I have found that the high performers embrace accountability.
3. Artificial intelligence is on the rise.
We’re still in the early “gold rush” phase of AI. It seems like a new AI start-up is launched every week. There’s excitement and optimism but also much fear and uncertainty. As AI matures, a category king will emerge. We’re already seeing this: Everything is being compared to ChatGPT.
While there is always risk involved, being an early AI adopter can give you a strategic advantage. Consider experimenting with different platforms to see what works best for you and your company. You can also train your content writers in how to optimize their skills with AI-generated content to increase their speed and efficiency. For instance, I recommend treating AI as a tool to enhance writing rather than replace creativity. Think of it like a digital intern: It does research and gives you a starting point. You then add your unique perspective. Don’t rely solely on AI-generated content; you’re still the boss who is responsible for sign-off.
4. Talent availability.
The unemployment rate increased to 3.8% in August 2023, and the number of unemployed people was at 6.4 million. I myself have seen a significant rise in applicants for every job posting we have. People are quietly searching because they feel uncertain about the economy and their companies’ leadership.
However, there is an opportunity here: Businesses have a chance to recruit top talent more easily. While you can work with a recruiter, from my experience, recruiters may just give you the first resume on their desk without deeply considering your needs. Consider posting your hiring notices on Indeed or other recruitment sites and managing the process yourself or through an in-house recruitment team.
Leaders can also appeal to top talent by offering autonomy and challenging projects. In my experience, top performers will embrace responsibility and the opportunity to be “intrapreneurs” who grow a specific part of your business.
5. Business applications are rising.
Apart from a fall in 2022, new business application filings have generally risen over the past decade. America has a high rating of 91.6 out of 100 from the World Bank for ease of starting a business. If you are considering starting a new business venture, now may be the right time. Small companies can be as agile as large ones, moving quickly with a small, efficient team. Remote work is now ingrained into the workforce, so you can run a business without the overhead of an office. And freelancers can temporarily meet any business needs while you get established.
There are a number of ways you can prepare for expanding your business ventures. I recommend learning everything you can about the field you want to enter, whether through online courses or through mastermind groups with like-minded people solving similar problems. You could also invest in a franchise to access proven systems faster. Perhaps you could be the operational partner with someone who provides the mentoring and finance. However, a note of caution: There’s a difference between a coach and a mentor. Coaches get paid to guide you; real mentors are invested in your success and have skin in the game. A mentor should be ten steps ahead of you and be rewarded for your success.
Navigating the post-pandemic economy requires adaptability and an understanding of current consumer behavior. Maintaining visibility, embracing innovation, leveraging top talent and seeking guidance from experienced mentors are crucial. Despite uncertainties, America remains a great country for entrepreneurs prepared to take calculated risks.
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