Watchouts in the year of the Rabbit

As we head into 2011 it is time for every small business to come to the aid of the country. Repeating yesterday’s pattern of success is a sure-fire way to attract copy cat competitors and a declining share of local markets, but a great chance to expand export opportunities.

Consumer and business confidence are starting to fall back to natural levels after a record rate of recovery. Gary Morgan says: “Consumer Confidence in Australia has now fallen for three straight weeks (120.7, down 0.5pts and down 3.6pts over the last three weeks).This week’s drop has been driven by falling confidence about families financial situations with 29% (down 3%) of Australians saying their family is ‘better off financially’ than this time last year and 40% (down 3%) saying they expect their family to be ‘better off financially’ this time next year.”

So let’s have a look at prospects for doing something different this year (thanks to Diana Abruzzi’s IWFCI (International Women’s Federation of Commerce and Industry)  by finding new ways to have a prosperous new year. Have a look at some of the futurist assumptions and ask how these could impact your business prospects:

In this context our top 10 “watchouts” this year are:

1. FAMILY FIRST – customers will be looking to spend more time at home and looking for ways to be more in touch with both their children and their parents to achieve a higher overall quality of life.

2. ONLINE – the era of the internet, iPhones and iPads and other global communication links will make for a more market savvy consumer who shops online before making purchases.

3. NEXT GEN MARKETING – High-tech methods of reaching  customers will be hot this year, including smartphone-readable QR codes, says Melanie Attia, product manager for email-marketing firm Campaigner. If your business doesn’t have a  Facebook fan page 2011 might be a good year to start.

4. SELL OUTS AND ACQUISITIONS – A lot of business owners  will see the year as the chance to implement an exit strategy as cashed up firms adopt a “grow by acquisition strategy” and look to buy up family businesses with a good customer book

5. MANAGEMENT UPGRADES – For small businesses that are willing to take up the pressures of the Year of the Rabbit, there will be a need for innovation, creativity and entrepreneurial risk. It will be time to get close to customers to discover new and different approaches to marketing products and services

6. FINANCIAL FRAMEWORKS – There will be an increasing use of integrated credit, cashflow and forward ordering systems  with customers being willing to have direct debit and online ordering systems as part of a systems oriented supply chain.

7. TAX REFORM – Many small and medium enterprises will  be faced with a much more in-your-face ATO as accountants strive to find more tax breaks and opportunities for reductions in corporate taxes and campaign for cuts in red tape. This will  be a year for significant pressures for small business tax  reform with changes in State Governments on the agenda.

8. IN THE CLOUDS – More and more companies will move towards  off-site cloud computing as more small-business functions will be  done on free, cloud-based platforms, predicts Bob Egan of  research house The Sepharim Group (at least until you get too  big and have to pay for an upgraded version).

9. WOMEN IN BUSINESS – As the economy picks up and skills  shortages become an inflationary pressure, more women will be setting up their own services and professional support  enterprises to supply qualified contract workers and key staff.

10.  ACTIVE LIFESTYLES – This all means that 2011 will be a  year in which households will be the centre of activity,  family  members will be more in touch and the balance between home,  work and play will show a bias towards working life with  increases in the number of working women, longer working  hours if you include time on the internet and social media and  higher consumption of ready-to-eat meals and outsourced  services.

The Chinese Year of the Rabbit will be a year of increasing competition for trade and product innovation that requires close links with bank managers and venture capital. It will be a year of turbulence, surprises and new challenges and a great opportunity to make the most of setting the pace rather than succumbing to the pressures of declining consumer sentiment.

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Dr Colin Benjamin is an entrepreneurship and strategic thinking consultant at Marshall Place Associates, which offers a range of strategic thinking tools that open up a universe of new possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship. Colin is also a member of the global Association of Professional Futurists.

Email dr.colinbenjamin@marshallplace.com.au
Phone +61 3 9640 0099