Business Trends for 2011

SmallBizLabs.com has identified their top ten small business trends for this year. In identifying trends, they have grouped these developments into three broad categories, economic, social and social media, and technology.
Economic
1. Small business economy recovers. While the recovery to this point has not been experienced by small business, SmallBizLabs.com unequivocally states, “In 2011, small businesses will see stronger demand and better business conditions, resulting in the small business economy emerging from the Great Recession.” Obviously, we all hope that their crystal ball is accurate.
2. Variable Cost Business Models. It is no surprise to any market participant that the focus remains on bootstrapping and business flexibility. Clearly, small businesses are attempting to move from fixed cost models to variable expense models. Fixed costs and fixed assets are being avoided and instead, many are adopting “pay as you go” models to maximize cash availability. Full time employees are being traded for contingent workers. We have seen this in our business as well as that of our clients. As an aside—The McCarrey Law Group is now better equipped than ever to provide you with legal services tailored to your business model and needs as cost effectively as possible.
3. Small Firms Reinvent U.S. Manufacturing. SmallBizLabs.com sees four trends driving significant manufacturing opportunities for small businesses:
A. Technology and variable cost business models are making it easier and cheaper for small and micro business to manufacture niche and customized products. From our other reading, we are particularly intrigued by the possibility of 3-D printing technology providing extremely small companies with significant opportunity in the manufacture of niche and customized products. It appears that 3-D printing effectively eliminates the economies of scale that large manufacturers have historically enjoyed.
B. The weak dollar and rising overseas costs are permitting U.S. manufactures to once again be competitive in the world markets.
C. Developing world economic growth is leading to stronger export opportunities.
D. The Internet and online systems are improving the ability of small manufacturers to find, sell and support customers. From our perspective, the technology referred to in this trend is so pervasive that it is possible that in looking back, business historians will view this as a once in 500 year change.
4. Alternative Financing. Clearly, bank and other traditional financing remain tight. SmallBizLabs.com believes that the climate is such that non-traditional alternative forms of financing will continue to be important to business growth for the foreseeable future.
Social and Social Media
5. Social Media Moves to the Small Business Mainstream. Notwithstanding all of the hype for Twitter, Facebook, Linkedin, and others, it is safe to say that the majority of small business owners are not using these tools as effectively as they might. This is changing and understanding the available social media tools is going to be increasingly more important to each of our businesses.
6. Social Commerce. “The amazing growth of Groupon and other social commerce sites in 2010 hearlded the shift towards the integration of social media and sales.” This is field that is going to continue to growth at breathtaking speed, especially as small businesses see results from their social media and social commerce efforts.
7. Small Businesses Continue to “Friend” Facebook. It is hard to comprehend the growth of Facebook. According to Facebook, there are more than 750 million active Facebook users with more than half of these users on site every day. Facebook claims that more than 7 billion minutes are spent on the site every month and that there are more than 900 million objects on Facebook with which people interact and during any given month, more than 30 billion pieces of contact are shared. Small businesses are embracing Facebook and Facebook is becoming a key part of any thoughtful web presence.
8. New Localism Continues to Flourish. According to the authors of the SmallBizLabs.com article, “[M]ore Americans are focusing on their families, friends and local communities. Small businesses benefit from the growing number of locally-oriented customers and the opportunities created through “Buy Local” campaigns.” This is viewed as a long term trend.
9. Freelancers Realize That They are Small Business Owners. The changing economy and broad and deep layoffs have created a new discernible body of contingent workers, free lancers, part timers, temps and contractors. After processing the shock of finding themselves in these categories, many individuals are now embracing the change to life and life style. As these individuals become more secure in their new found world, this segment of the economy will become stronger and more successful.
Technology
Like most parts of business, technology too is continuing to mature and consolidate. Technologies that were used by small businesses and others are becoming more mainstream. As a result, SmallBizLabs.com makes only one reference to “the” trend in technology.
10. Working in the Cloud. This trend is indicative of the monumental shifts in how business is being done. Said simply, “Work is moving to the cloud, and small businesses are embracing this shift and related technologies.”
We find these and other changes in the business world to be exciting and scary all at the same time. All of us are going through shifts in the business world that we have never before experienced. At the McCarrey Law Group, we are working to position ourselves to be a key contributor to your business efforts by providing modern, cost effective legal tools for working in the new world. If there is anything that we can do to help you, please call. We delight to serve you and look forward to our continuing relationship with you.