Bill The Builder

Posts Tagged ‘business trends’

Every small business owner faces tough times and setbacks. In fact one can almost plan for some. In example, as a speaker there are times when seasonally fewer events are planned meaning the competition is fiercer and I am likely to have a lower number of paid speaking dates during those times. As a result I may plan to use this time to produce or update my line of information products and reach out to customers needing my services in less than a speaking capacity. These predictable patterns in my industry market are called trends. When I am aware of industry trends I can plan, adapt and live better.

I like to think of trends in two categories: long trends and short trends. Short trends are usually driven by events and economics. A good example of a short trend that may lead to numerous long trends worth watching is the evolution of web 2.0 social media. A new technology that is taking the business world by storm is promising to change the way we interact with customers and reach new customers. From Twitter to YouTube there are new opportunities that didn’t exist just a year ago. Long trends are usually more impacted by demographics and geographics and therefore may last longer and even cycle.

Trends are typically cause and effect as a result of changes measured by three sets of data. Geographics is a data set that defines your market in terms or geography, resulting season and weather, culture and local events. Demographics are the data defining the social character of your market, including age, gender, family size, religion, social class and more. Psychographics are the values, beliefs, opinions and attitudes of the groups in your demographics. Each of these data sets is affected over the years. It is important to understand your market.

If you are in the sporting goods industry you would need to know geographically influenced trends such as seasonal changes that accommodate the sale of kayaking equipment versus skiing equipment to a certain group. I did a little demographic research for a client recently who felt that their mostly retired clientele would be a suitable audience for social media interaction. Available demographic data showed quite the contrary.

Another good example is in the real estate industry. If I have a number of rental units that are occupied by families with school age children it is in my best interest to wait until after the school season has begun before raising the rent. If rent is raised over the summer families with children may be more inclined to shop around and move. Families with children will be reluctant to move in the middle of the school season. By the end of the school season they will have acclimated to the new higher rent.

Trends and trend data affect every business. Take a little time to sit back and put in writing how trends affect your business. Identify long and short trends. What trends repeat and why? Based on observable trends when is the best time to try reaching new customers?

Paying attention to the details in your business can save you time and money and help you make more money through the year.