America’s economy seems to be on the rise under the new presidency which is a good thing for all business owners in America. Despite this what other factors are effecting your bottom line? There are some trends out there that will occur over the next few years regardless of what DC does. Larger forces are at play, can this be slowed down or accelerated, yes, but understanding the trends can help a Veteran business owner plan accordingly.
1. The Baby Boom
The Baby boom generation is not calling it quits. Surveys have shown that over half of the 45-75 age range are being forced to extend their employment due to the prior recession. Even those that have saved for retirement will not fully retire. Over the last 8-10 years the great recession has left emotional scars that lead to forms of semi retirement. This means less job opportunities for the younger generation. The millennial generation has been forced to either change their way of thinking and establish new original ideas, or work temporarily on a hobby to make money. Innovation has spawned as a result of the baby boomers still at work.The veteran business owner should take some of that innovation and see how it can be used to create further chances to generate revenue. Look into tech, find ways to innovate and stay ahead of the curve.
2. Economic Superpowers
Before 2009 The United States was the only economic superpower. Over the past 8 years Americans have become uneasy about the attacks on free trad
e, job outsourcing, and currency manipulation. China, Russia, India, Brazil, and some others stayed out of trouble during this recession by regulating their banks to avoid derivatives. Even if current America first policies are successful, the other powers will continue to grow. So, what does this mean to the Veteran business owner? It means more opportunity to sell in America as well as abroad.
3. Rising Interest Rates
Interest rates are rising. The fed wishes to hit a 2% goal, meaning inflation is at 2% and unemployment is at it’s natural level of 4%. That means that the cost of any loan will go up, however, it also means that the more you save the more you earn.
4. Supply and Demand
Financial markets will control pricing. The old system of supply and demand is no longer in control. Instead commodity traders set the prices. Oil, gas, and food are some of these. The speed at which transactions can be made has also increased economic volatility. Keep on your toes for pricing trends on commodities and take advantage when the market is right. Pay close attention to investor trends.
This is an expansion phase. So, expand when it makes sense to do so. Maybe take on some of those millennials that can take you in to the tech space, or invest some money into other operations. Exciting times are coming economically, do your research and get ahead.
Note this article is speaking in commonplace and is in no way meant to be used for financial advice. I encourage all to look at trends and see what works for the individual Veteran Business Owner.
*https://www.thebalance.com/top-usa-future-economic-trends-3305666* Trends and some info were used from this article.