Today is the first of January 2012, a new year has begun. It will bring joy and happiness for many, some will suffer and some will struggle. That is the reality of life.
2012 will be a challenging year for small businesses across the globe. With deepening economic crisis in Europe, threat of Euro zone and Euro, possibility of Greece and Italy defaulting and push to convince Germany to take the hit by paying for financially strangled nations in Europe, things are not promising!
The US Economy continued in depression since 2007. Although, US economists and the media, including New York Times. Los-Angeles Times, Wall Street Journal, Herald Tribune have acknowledged US economic growth in 2011, the consumer market still looks dull!
Middle East remained a turbulent region during 2011; it is highly unlikely for this region to perform well in the New Year.
According to Moody’s, Asia Pacific economies are going to see some slowdown mainly reflecting upon the economic crisis in Europe. There are chances of recovery in the second half of 2012, but a lot depends on how well the US and European economies perform!
The situation is alarming and a number of businesses particularly domestic businesses in smaller economies will be required to play safe. To be able to survive, small businesses must focus avoiding four major mistakes during 2012:
Expansion without growth:
A number of enthusiasts consider expansion as a tool to increase revenue. A major misconception! Before expansion starts brining revenue, a lot needs to be spent on hiring people, capital expenditure, benefits, marketing etc. If the market does not offer some growth potential in the normal course, expansion will be self-destructive!
Underutilized resources:
It is often seen that companies fail to optimize their resources. Spend time and energy in identifying the right potential of your human and other resources and engage them at an optimal level to achieve maximum output. Any underutilized resources, is money going down the drain!
Increasing Cost of Doing Business:
Cost of doing business increases exponentially for companies that are not managing their accounts well. One of the ways to keep the cost of doing business low is by balancing the receivables and payables. This reduces the financial cost of your businesses. Save energy, manage productivity and reduce cost of inventory – somehow keep strong focus on reducing your cost of doing business.
Saying no to technology:
In this world of social networking, digital marketing and technological advancement, it is highly lethal to delay integrating technology in your business model. Small or big, businesses need to learn how best they can deploy technology.. Social Media and Digital marketing is particularly supportive in case of local retail businesses. Technology is something cannot be ignored in 2012!
I wish you all a very Happy and prosperous 2012!