Each year, thousands of people use their creativity and innovation to start a small business. People start small businesses because they want to work for themselves and offer a product or service with their own personal touch. Others create a small business because of personal or financial reasons. When people find it difficult to secure new employment, creating a small business provides a new entrepreneurial path that can be a fulfilling and exciting journey.
There are certain ingredients needed to create a successful small business. Some of these ingredients include a dash of business savvy and a determination to succeed. Small business owners also need a clear understanding of business trends.
The Social Media Era
One of the largest small business trends is the growth of social media networking sites. These sites present a new era of internet. Entrepreneurs have to use social networking tools if they expect their businesses to go to the next level. Some of the leading examples of social media sites are Facebook, Twitter, YouTube, Slideshare, and Flikr. The growth of these sites has exploded. Social networking sites have become such an integral part of culture that these sites are spilling over into businesses.
Businesses are using social networking technology to make their products and services more enticing to users and create exposure for themselves. By using the right sites, companies and small businesses are creating blogs and videos that lure in new customers and open up the possibility of gaining media attention on a shoestring marketing budget. These sites open the doorway to more visibility and draw the attention of demographics that small business owners could only dream of reaching years ago.
The trend of social networking has dominated 2009 and will dominate 2010. It’s not expected to go away anytime soon. Entrepreneurs will likely see this trend evolve and grow even more domineering in the future. The old school version of this trend was when small business owners simply used the telephone, word of mouth, or even the postal system. Today, social media rules.
Giving a Little to Get a Lot
Most small business owners are so focused on making money that the idea of giving money away is unlikely to be incorporated into the business plan, but philanthropy is working for numerous small businesses.
Many small businesses are growing and thriving because they have business models that are created on the idea of philanthropy. However, it’s not always financial philanthropy that cultivates success.
Social philanthropy is booming. There has been a surge in the number of businesses that cater to helping other businesses and people thrive. For example, there is a rise in small businesses that help entrepreneurs increase productivity, gain more exposure, and solve issues that may be keeping their business from moving forward competitively.
On the other hand, financially philanthropy has become the business model for some. Tom Shoes, a shoe and accessories retailer is the best example of a business that gives a little to get a lot. The business started in the apartment of a compassionate entrepreneur that decided he would give a pair of shoes away for every pair that he sold.
Today, Tom’s business is a multi-million dollar empire that has managed to branch into other areas and products. Philanthropy is often born out of poverty. As financial speculation and uncertainty remains throughout 2010, the business model of giving to get will also remain. Global economic trends don’t just play a role in the economy, they also play a significant role in what small businesses are doing.
Returning to Simplicity and Going Green
The most interesting trend of 2010 is the trend of small businesses returning to simplicity. Many small businesses are stripping away the excess and cutting back on things that are not generating revenue. This allows a small business to focus on endeavors that will bring success.
Some small business owners entered the entrepreneurial world attempting to be a Jack-of-all-Trades, but small business owners are learning that they can cultivate more success by being a master at one thing. At one time, finding a niche was considered a key to success for small business owners, but over time the idea of expansion into numerous areas seemed like a surefire way to generate more revenue and publicity. Unfortunately, too much expansion can backfire and leave a small business burned out and spread too thin.
Some businesses are not interested in covering numerous things but are zoning in on the things that truly matter. Small business owners are now more interested in making their business stand out as the expert product or service in its respective field.
Another trend that will dominate 2010 is the green era. Businesses are going green. Being established as a green business is smart and eco-friendly way to attract more clientele. In 2006, market researchers discovered that people will go out of their way to buy from a business that is considered eco-friendly.
Small business owners are leaning toward organically made products and some entrepreneurs are leasing space in energy efficient buildings. A solar panel or two has never hurt any business. Currently, the green trend is worth $209 billion and small and large businesses are investing in this trend hoping to reap some rewards.
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